Cities are rapidly changing due to Artificial intelligence (AI) which is creating “AI-powered” cities or “smart” cities. These cities incorporate machine learning, data analytics and automation into the city’s infrastructure and public utility services. The benefit for city residents is improved efficiency and the benefit for national economies is exponential growth.
AI cities are dependent on data. Sensors, monitors and internet-connected devices collect data on the daily consumption of energy, infrastructure safety and many event types of utilisation data. AI analyses the data and makes decisions that optimise the operation of these resources to reduce congestion and safely distribute resources. This AI provides the infrastructure and a national economy a safe and reliable way to become less expensive and more productive.
AI cities also provide important economic resources, including efficiencies. A “smart” energy grid employs AI to reduce the distribution of services. This goal of the “smart” grid is to eliminate the loss of services and increase the affordability of services. In a “smart” water management system, savings of lost resources, of high value, provide for positive economic growth of the nation to be funded by other services. Of particular importance are the positive results provided to the community of healthcare and educational services.
AI cities draw investment and foster innovation ecosystems. Digital infrastructure attracts technology companies, startups and research institutions. As innovation hubs develop, new products, services and business models are created. Startups, in turn, grow, scale and create jobs while raising exports and contributing to GDP growth.
Employment also changes. AI and automation improve the nature of work and replace jobs. New fields of work, like data science, cybersecurity and software engineering, emerge. Increased demand for skilled professionals also cultivates improvements in education, paving the way for a future-ready workforce. System improvements also raise the competitive nature of a national labour market.
AI cities also enhance the economic impact of the transportation network, the most highly visible part of the city. Smart design systems raise the efficiency of logistics and supply chain systems. Commutes and operations to and from strategic zones are further enabled by both autonomous and AI systems. The quicker, more systematic operation of the transportation network raises the economic impact of a city.
AI systems also improve public safety and the management of city operations. The predictive nature of emergency systems and crisis management discerns safer alternatives to commutes, making a well-managed, safer city also more appealing to tourists and contributing to economic growth.
Furthermore, AI cities support development in fields associated with economic sustainability, primarily via sustainable carbon footprints, smart waste prioritisation and optimised economic sustainability. This development ultimately aims to meet sustainability goals in various fields. The cities of the future support the green economy and contribute to the improvement of the economy.
The development of AI cities has positive effects on the economy, but the challenges of developing AI cities still exist. These challenges relate to the cost of initial investment, data protection and various regulatory frameworks. Such challenges require the involvement of the civil sector. If these AI cities are to fully support the economy, the development of AI technologies will have to be fully integrated and made available to all civil structures. AI cities are essential to the development of any economy, as they support investment in all economic and AI innovation. The transformation of cities will happen soon as AI technology continues to be implemented across the globe and becomes central drivers of economic growth and global competitiveness.
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