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Cities embrace traditional and generative AI to become future-ready, new research finds

Feb 24, 2025 - financialpost.com
A global study conducted by ServiceNow and Deloitte, in collaboration with ThoughtLab, surveyed 250 cities to explore how they are adopting AI to enhance productivity, efficiency, and economic growth. The study found that 56% of cities are currently using AI to improve government operations and services, with 83% planning to expand AI usage in the next three years. Additionally, 87% of cities are either using, piloting, or planning to use generative AI for content and analysis. The research highlights that cities are employing AI across various urban domains, such as government operations, public transportation, urban risk monitoring, infrastructure management, sustainability, and resident wellbeing, resulting in benefits like increased growth, better risk control, and improved citizen engagement.

The study also identifies AI leaders—cities with advanced AI usage and digital infrastructure—who are better equipped to handle urban challenges and prepare for the future. These leaders follow key steps, including making a top-down commitment to AI, building a modern data and IT foundation, developing AI skills and processes, and ensuring responsible AI use. The research names top AI-leading cities in regions such as Asia-Pacific, Europe, Latin America, North America, and the Middle East and Africa. The study underscores AI's potential to help cities manage traffic, personalize services, conserve resources, and enhance resilience against disruptions.

Key takeaways:

  • 56% of cities are actively using AI to upgrade government operations and services, with 83% planning to do so over the next three years.
  • 87% of surveyed cities are planning to use, piloting, or already using generative AI (GenAI) to generate content and analysis.
  • AI leaders are identified by their top-down commitment, modern data and IT foundation, AI skills development, and innovation ecosystem cultivation.
  • AI leaders are ahead in deploying critical technologies and ensuring data security, with 73% building an AI governance framework and 61% setting guidelines for handling personal data.
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