Building tomorrow’s cities today: the role of AI in shaping urban futures

A new report from Apolitical and Microsoft underscores the transformative potential of generative AI for the public sector. The findings emphasize its ability to enhance both the speed and quality of service delivery and improve the lives of those who deliver and receive those services.

They also reflect what I’m seeing and hearing as I travel around the world meeting our partners and customers in public sector. In Breda, Netherlands, generative AI is being used to build, inspect, and analyze digital twins of key infrastructure. During my travels, I saw other cities using AI as a catalyst to enhance communication and for improved information and documentation management.?

With local and national governments already investing significantly, generative AI is therefore set to be a key enabler for the rapid delivery of secure, modern, and sustainable government services. No more is this true than in the realm of urban innovation.

The role of AI in urbanization

City growth is accelerating as more people move to urban areas and with fast growth brings wide-ranging challenges—but also incredible opportunities. Many of these, from greater efficiency and sustainability to better security and inclusion, will be enabled by AI technology.

It’s already happening. AI–particularly generative AI–is enhancing citizen engagement by streamlining service delivery and improving satisfaction. It’s also advancing urban planning and development, optimizing public facilities through smart building and predictive maintenance technology. Additionally, it’s transforming transportation with traffic management and revolutionizing public transit planning and permit processes.

At Microsoft, our vision for urban innovation revolves around three core principles, and it’s no surprise that AI plays a part in each one:

• First, urban innovation starts with people.
• Second, it must integrate with and enhance existing built environments.
• Third, and finally, data and AI are the key enablers.

1. Urban innovation starts with people

It is vital to involve people, because cities flourish when their residents flourish. The goal of innovations in technology, service, and governance is to improve citizens’ lives. So, urban innovation should always start with the residents, and secure their involvement.

Generative AI is instrumental in city-wide innovation, offering reliable, user-friendly digital experiences that enhance service delivery. Whether that’s via intelligent chatbots handling routine inquiries or AI copilots assisting call center staff with complex requests in real time, its technology is an enabler of better personalized experiences.

But there’s an internal aspect too. AI is helping government workers with repetitive tasks, summarizing information and creating drafts, informing policymaking, improving internal knowledge, and supporting the software development process.

A great example is Tokyo Metropolitan Government in Japan. It introduced its own private version of ChatGPT in June 2023 to assist in tasks such as text creation, idea generation, and clerical work. One of the key success factors was a project team formed to test the tool's efficiency and develop guidelines for its use, focusing on data privacy and recommended best practices. The team provided continuous feedback on usage, and two months after the tool was introduced, an extensive survey of 50,000 employees was conducted.?

2. Integration with existing built environments

Cities across the world are exploring how generative AI can enhance community outreach and accessibility, streamline service delivery, support procurement, improve productivity, and much more. But it must be integrated into existing services and workflows.

For example, town authorities in N?vodari,?Romania, have used a?Microsoft Azure-based digital platform?to bring public services online, making it easier for people to submit requests, track cases, and review regulations.?Elsewhere in Europe, Portugal’s Administrative Modernization Agency has created a virtual assistant to help the public navigate their digital authentication system. The avatar’s answers rose to 90% accuracy in just the first two weeks through iteration and testing.

In Canada, the City of Kelowna?is?using generative AI?to help people access services and better understand regulations around building permits, streamlining processes, and improving transparency, ethics, and security.?While in the Middle East, the State of Qatar?has integrated?smart city capabilities?with government-shared services on a platform of national services built on Microsoft Azure.

These examples clearly show how technology can be leveraged to improve local government operations, making service delivery more efficient and effective.

3. Data and AI as key enablers

When I talk with government leaders about generative AI, the conversation inevitably turns to data. These organizations sit on large mountains of data which are getting bigger every second, but it’s not always easy for AI tools to access or extract the information.

The first step to getting AI-ready is to ensure you have a good data platform. This means investing time to evaluate your data estate and then making moves to migrate it to the cloud. It’s OK to start small. Transforming everything onto one vast platform can be challenging. A more practical approach is to focus on a specific use case?that delivers a clear outcome and just prepare the supporting data that are required.

This is exactly what Cornwall Council in England did. They brought together their?core data assets—people, places, and money—to enable reporting across departments and organizations while also eliminating inefficiencies.?Similarly in?Taiwan,?Taoyuan City?is delivering improved services and better quality of life through a?hybrid-cloud solution?that pulls together more than 200 IT projects and a patchwork of disparate data sources.

But one thing is also certain: as we embark on this journey, there must be a strong security foundation. I regularly hear concerns about deploying AI in sensitive public sector operations. At Microsoft, we are committed to making sure AI systems are developed responsibly and in ways that gain public trust. Ensuring privacy and security is one of our six responsible AI principles. Developing secure applications, establishing clear guidelines for AI usage, and maintaining rigorous cybersecurity protocols, are all critical for ensuring digital transformation projects succeed.

The need for digital skilling

Implicit in all three of these principles is the ability of government agencies to adapt and excel, and this hinges on their most valuable asset—their people. Generative AI offers tremendous potential for our public sector workforce, but only if they have the skills to use it. That’s why we’re committed to providing easy access to digital skilling opportunities in the public sector. It’s a fundamental pillar for success, ensuring employees can use the tools to their full potential and empowering those who might not otherwise use them.

So, as we embrace generative AI in urban innovation, let’s remember that at the heart of these advancements are those who make it happen. To empower them to drive forward a future where technology enhances every aspect of city life, we must give them the skills to do it.

Visit the Center of Expertise website to learn more about digital transformation in the public sector. Microsoft Learn is available to help with skilling and preparing for AI Transformation with Microsoft Cloud. Finally, explore the Public Sector Center for Digital Skills to view skilling content providing public servants with the training they need to help advance digital transformation in public sector organizations.