Deloitte Korea Publishes "The State and Future of AI-Powered Smart Cities"

"Cities Adopting Generative AI Expected to Triple in Three Years"

As artificial intelligence (AI) is rapidly transforming various services such as urban infrastructure and transportation, Deloitte announced on May 20 that it has jointly published the report "The State and Future of AI-Powered Smart Cities" in collaboration with ServiceNow, NVIDIA, and ThoughtLab. The report surveys AI plans, investments, and implementation status in 250 cities worldwide.

According to the report, 18% of the cities surveyed are already actively utilizing AI to strengthen their smart city initiatives. This proportion is expected to more than triple to 59% in three years. Since AI may involve greater risks, such as security and ethical threats, careful planning is required, including sufficient testing of use cases and the establishment of policies for responsible use.

ThoughtLab evaluated the AI maturity of cities based on criteria such as the level of AI utilization, scope of application, efforts to ensure accountability, and future preparedness. Cities were classified as "AI Leaders," "AI Pacesetters," or "AI Adopters" according to their level of maturity. Of the 250 cities surveyed, 20% were designated as "AI Leaders," including major global cities such as Seoul, New York, Paris, and Tokyo. Among AI Leader cities, 73% were in developed countries and 27% were in emerging countries, highlighting the strength of developed nations.

AI Leader cities were found to be responding more effectively to a variety of urban challenges, including climate change, public health, crime, housing shortages, and aging infrastructure. In particular, they demonstrated outstanding capabilities in terms of resilience. Among AI Leaders, 78% reported being prepared to address urban issues. Of these, 63% achieved significant progress in the areas of "quality of life, health, and trust," while 55% made major advances in "safety, security, and resilience."

Meanwhile, AI Leader cities were found to be actively utilizing AI in a wide range of areas, including improving government operational efficiency (71%), enhancing safety, security, and resilience (63%), advancing citizen well-being, health, and trust (61%), improving mobility and transportation (57%), managing urban infrastructure (55%), and promoting environmental sustainability (45%).

Han Donghyun, leader of the Energy, Resources, and Industrial Products division at Deloitte Korea, stated, "As we draw the blueprint for future cities through AI, what matters is not the technology itself, but how it can tangibly improve the lives of citizens. I hope that the data-driven strategies and case studies of AI-leading cities introduced in this report will serve as a meaningful compass for cities to set AI adoption priorities and drive sustainable innovation."