Cities Worldwide Embrace AI to Build Future-Ready Urban Environments, Study Reveals

A groundbreaking global study has revealed that cities are rapidly adopting artificial intelligence (AI) to enhance their efficiency, improve public services, and drive economic growth. The study, conducted by ServiceNow and 德勤 in collaboration with ThoughtLab , analyzed 250 cities across 78 countries.

The study found that more than half (56%) of these cities are already leveraging AI, with a staggering 83% planning to do so within the next three years. Moreover, generative AI (GenAI) is also on the rise, with 87% of surveyed cities implementing, piloting, or planning to adopt this technology to generate content and analysis.

AI: The Catalyst for Future Cities

The study, titled AI-Powered Cities of the Future, highlights the transformative potential of AI across various urban domains. Cities are using AI to streamline government operations (65%), improve public transportation (64%), enhance risk monitoring and emergency response (62%), manage urban infrastructure (60%), drive sustainability efforts (60%), and improve residents’ well-being (57%).

The early adopters are already experiencing significant benefits, including economic growth, cost efficiency, enhanced citizen engagement, and improved public health and safety.

Lou Celi , CEO of ThoughtLab and director of the study emphasized AI’s integral role in urban development, stating, “AI will be the common ingredient for future cities. It will help cities manage traffic in real-time, personalize citizen services, conserve resources, reduce carbon emissions, speed up emergency responses, and keep cities resilient in the face of unforeseen disruptions.”

The Road to AI Leadership

To determine the leading cities in AI adoption, ThoughtLab developed a maturity model that evaluates cities based on their AI usage, digital foundation, and governance strategies. The research identifies key steps that AI-leading cities take to maximize AI’s potential and ensure long-term success:

• Commit to AI from the Top Down – Cities excelling in AI adoption have a clear vision and a structured plan supported by adequate funding. These initiatives often align with national AI strategies.
• Establish a Modern Data and IT Infrastructure – Successful AI implementation requires robust data collection, integration, and security on a cloud-based platform to enable automation and scalability.
• Develop AI Talent and Processes – AI leaders invest in workforce development, ensuring they have skilled personnel to drive AI initiatives. Notably, 59% of these cities appoint dedicated AI leaders to oversee implementation.
• Foster an Innovation Ecosystem – Collaboration between government, private sector, and nonprofits enhances AI capabilities, providing access to data, expertise, and resources.
• Implement AI Across Urban Domains – AI-driven cities integrate AI into multiple sectors, including governance, transportation, public safety, and environmental management. Currently, 76% of AI-leading cities widely use traditional AI, and this is expected to rise to 90% within the next three years.
• Leverage AI in Conjunction with Other Technologies – AI-leading cities are also pioneers in adopting complementary technologies such as cloud computing, biometrics, cybersecurity, chatbots, Internet of Things (IoT), and data analytics.
• Prioritize Cybersecurity – With AI adoption comes the challenge of safeguarding data. AI leaders implement robust cybersecurity measures, including data backup systems (80%), cybersecurity defense mechanisms (80%), automated risk monitoring (73%), and data-loss prevention tools (71%).
• Ensure Responsible AI Usage – Ethical AI deployment is crucial for long-term success. AI-leading cities implement AI governance frameworks (73%), develop policies for handling personal data (61%), consult experts for policy-making (57%), and establish mechanisms to detect bias in AI systems (55%).

Global AI Leaders

The study identifies cities that are leading the way in AI adoption across different regions:

• Asia-Pacific: Beijing, Guangzhou, Hong Kong, Lucknow, Melbourne, Seoul, Taipei, Tokyo
• Europe: Amsterdam, Berlin, Bratislava, Ljubljana, Madrid, Marseille, Paris, Stockholm, Vienna
• Latin America: Curitiba, Mexico City, Niteroi, Sao Paulo
• North America: Boston, Chicago, New York, San Antonio, Seattle, Toronto
• Middle East & Africa: Dammam, Harare, Istanbul, Kuwait City

These cities serve as benchmarks for others looking to harness AI’s potential to create smarter, more resilient urban environments.

The Future of AI in Cities

As AI technology continues to evolve, cities that proactively embrace AI will be better positioned to address future challenges and seize economic opportunities. By investing in AI-driven governance, infrastructure, and services, municipalities worldwide are paving the way for an era of intelligent urban management that prioritizes efficiency, sustainability, and inclusivity.

With a strategic approach to AI adoption, cities cannot only enhance their operational capabilities but also improve the quality of life for their residents, making urban spaces more livable, adaptive, and future-ready.