NEW YORK--(BUSINESS WIRE)--Cities around the world are racing to adopt AI to drive productivity and efficiency and boost their economies, according to a global study of 250 cities conducted by ServiceNow and Deloitte, in collaboration with ThoughtLab, a leading provider of thought leadership research. The study found that 56% of cities are actively using AI now to upgrade government operations and services, and 83% plan to do so over the next three years. Reflecting the exponential speed of change, 87% of surveyed cities are planning to use, piloting, or already using generative AI (GenAI) to generate content and analysis.

Titled AI-Powered Cities of the Future, this ground-breaking study reveals how AI will catapult cities into the future. It shines a light on the AI plans, investments, practices, and results of a diverse set of cities located in 78 countries. To gain a balanced view, the study benchmarked cities with varying income levels and population sizes, from 50,000 to over 37.1 million people.

The research revealed that cities are employing AI across urban domains: 65% are piloting or using it to streamline government operations; 64% to upgrade public transportation; 62% to monitor and respond to urban risks; 60% to better manage urban infrastructure; 60% to drive sustainability; and 57% to improve the wellbeing of residents. They are already seeing myriad benefits, from increased growth, better risk control, and cost efficiencies to improved citizen engagement, health, and safety.

The path to AI leadership

As part of our research, ThoughtLab created a maturity model to identify AI leaders—those cities with the highest level of AI usage across domains as well as the digital foundation and controls in place to succeed in the AI era. The analysis found that AI leaders are much better equipped to deal with today’s urban challenges, more resilient to day-to-day urban stressors, and better prepared for the future.

AI leaders achieve these results by taking eight key steps:

1. Make a top-down commitment. AI leaders have a vision and plan for transforming their economies and urban domains through AI, backed by an adequate budget. Often these plans begin at the national level and cascade down to cities.

2. Build a modern data and IT foundation. The road to AI leadership starts with gathering and integrating data from urban domains and external sources, and then putting the data on a secure, cloud-based platform with automated and scalable processes.

3. Develop AI skills, talent, and processes. Talent gaps and inefficient processes can delay achievement of AI plans. AI leaders develop the skills, talent, processes, and culture to take AI to the next level, and 59% appoint an AI head with the staff to make it happen.

4. Cultivate an innovation ecosystem. AI leaders collaborate with more partners across the private, public, and nonprofit sectors than do other cities. They share AI expertise and resources, build access to data and talent, and align approaches with those of other government entities.

5. Transform domains with AI and GenAI. AI leaders speed ahead of other cities in AI adoption: 76% already make wide use of traditional AI today and 90% will make wide use over the next three years. They are scaling these solutions across every urban domain.

6. Unlock value by combining AI with other technologies. AI leaders are also ahead of their peers in deploying critical technologies, such as cloud, biometrics, cybersecurity tools, chatbots, IoT, and data analytics—often combining them with AI to supercharge results.

7. Keep data security top of mind. AI leaders mitigate potential cyber and privacy risks by leveraging data backup systems (used by 80%), cybersecurity defense mechanisms (80%), automated risk monitoring (73%), data-loss prevention tools (71%), and other cybersecurity technologies.

8. Ensure the responsible use of AI. AI leaders take multiple actions to manage AI properly. For example, 73% build an AI governance framework, 61% set guidelines for handling personal data, 57% work with experts to set policies, and 55% develop processes to detect biases.

AI is a versatile tool that cities can use to overcome key challenges and prepare for the future. Here are the top AI leaders that our research identified in each region:

• 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 and Africa: Dammam, Harare, Istanbul, Kuwait City

“AI will be the common ingredient for future cities,” said Lou Celi, CEO of ThoughtLab and the study’s director. “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.”

A copy of the full report and other materials related to the study can be accessed here.

About ThoughtLab Group
ThoughtLab Group is an innovative thought leadership firm that creates fresh ideas through rigorous research and economic analysis. It specializes in assessing the economic, financial, and social impact of latest technology on cities, companies, industries, and world markets. Its services include fielding business, consumer, investor, and government surveys; organizing executive interviews, meetings, and advisory groups; conducting economic modeling, AI sentiment monitoring, benchmarking, and performance analysis; and developing white papers, eBooks, infographics, and customer-facing analytical tools.