Cities around the world are rapidly adopting artificial intelligence (AI) to increase productivity, optimize services, and strengthen their economies, according to a global study conducted by ServiceNow and Deloitte in partnership with ThoughtLab, a leading research firm on technology trends. The research revealed that 56% of cities already use AI to enhance government management and public services, while 83% plan to adopt this technology in the next three years. The study also shows an acceleration in the use of generative AI (GenAI), with 87% of cities already planning, testing, or implementing this technology to generate content and analyses. Currently, 18% of cities use generative AI, but this number will triple to 59% in the next three years.
The study, titled “AI-Driven Cities of the Future”, analyzed the plans, investments, and practices of a diverse group of cities across 78 countries, taking into account different income levels and population sizes, ranging from 50,000 to over 37.1 million inhabitants. The results indicate that artificial intelligence is already being applied in various urban areas:
- 65% of cities are testing or using AI to optimize government operations;
- 64% to improve public transportation;
- 62% to monitor and respond to urban risks;
- 60% to manage urban infrastructure more efficiently;
- 60% to promote sustainability;
- 57% to improve the quality of life for the population.
Cities that have already implemented artificial intelligence report various benefits, such as economic growth, risk reduction, cost efficiency, greater citizen engagement, and improvements in health and public safety.
The path to AI leadership
To identify leading cities in AI adoption, ThoughtLab created a maturity model that assesses levels of technology adoption, digital foundations, and control mechanisms. Leading cities are better prepared to tackle urban challenges, are more resilient, and are well-positioned for the future. These cities achieved leadership by following eight essential steps:
- Strategic commitment: develop a clear vision of how AI can transform their economy and infrastructure, ensuring adequate budget.
- Strong data and IT foundation: integrate data from various urban sources into secure cloud platforms, with automated and scalable processes.
- Talent development and management: invest in training qualified professionals to lead AI initiatives, with 59% of leading cities having a chief AI officer.
- Promotion of innovation: collaborate with private companies, public sectors, and nonprofit organizations to share expertise and access to data and talent.
- Scaling AI and GenAI: rapidly expand the use of these technologies across all areas of urban management.
- Integration with other technologies: combine AI with cloud computing, biometrics, cybersecurity, IoT, and data analysis to maximize results.
- Data security: use advanced systems to mitigate cyber risks, such as automated monitoring and data loss prevention tools.
- Responsible use of AI: establish guidelines for AI governance, personal data protection, and algorithmic bias identification.
Brazilian cities lead AI adoption in Latin America
Brazil is emerging as a leader in adopting artificial intelligence across Latin America, with São Paulo, Curitiba, and Niterói classified as AI leaders, while Belo Horizonte, Aracaju, Porto Alegre, Recife, and Vila Velha are advancing in AI initiatives. These cities are integrating AI into government operations, mobility, public safety, health, and sustainability to improve urban life and efficiency:
- São Paulo is one of the top 10 cities leading AI adoption through fraud detection, using artificial intelligence to identify false claims and misuse of public funds in government services.
- Curitiba is driving environmental sustainability through climate models and predictions, leveraging AI to support urban resilience.
- Niterói is improving public health services, using AI to analyze disease trends and enhance the allocation of medical resources.
- Belo Horizonte is leveraging AI for mobility and transportation, especially in traffic management and public transport optimization.
- Aracaju applies AI in security and protection through video monitoring, crime prediction, emergency response, and identifying and mitigating cyberattacks on the city’s critical infrastructure.
Brazilian cities are advancing in urban infrastructure, AI-driven waste management, and cybersecurity, positioning the country as a key player in AI-driven urban transformation. As these initiatives expand, Brazil is setting a benchmark for AI adoption across Latin America.
The study identified the leading cities in each region:
- Latin America: Curitiba, Mexico City, Niterói, São Paulo.
- North America: Boston, Chicago, New York, San Antonio, Seattle, Toronto.
- Europe: Amsterdam, Berlin, Bratislava, Ljubljana, Madrid, Marseille, Paris, Stockholm, Vienna.
- Asia-Pacific: Beijing, Guangzhou, Hong Kong, Lucknow, Melbourne, Seoul, Taipei, Tokyo.
- Middle East and Africa: Dammam, Harare, Istanbul, Kuwait City.
