Powering tomorrow's cities: Opportunities for the UK in the urban AI revolution

Powering tomorrow's cities: Opportunities for the UK in the urban AI revolution

The global race to harness Artificial Intelligence (AI) is rapidly reshaping our urban landscapes, presenting both significant challenges and immense opportunities for the UK technology sector. In a recent collaboration with ThoughtLab, Service Now and NVIDIA, we developed a study that surveyed 250 cities worldwide, revealing a dramatic acceleration in AI adoption for enhancing city operations, services, and citizen experiences. This shift towards 'AI-powered cities' signifies a critical juncture for UK tech companies to lead, innovate, and collaborate.

The global AI surge and UK's position

The study underscores the speed and scale of AI deployment. Over half of the cities surveyed are already actively using AI, with this number expected to grow exponentially - nearly half anticipate wide usage within three years. While larger cities currently lead due to greater resources, the increasing accessibility of AI, including Generative AI (GenAI), is enabling smaller cities, including some in the UK like Edinburgh and Coventry, to make strides. Notably, 87% of cities globally are planning, piloting, or using GenAI, highlighting its transformative potential beyond traditional AI for tasks like data analysis, content generation, and service personalisation.

This global momentum translates into tangible opportunities for the UK. Cities are actively seeking AI solutions across diverse domains:

• Government Operations: Automating processes, analysing vast data volumes, and improving decision-making.
• Safety & Resilience: Enhancing public safety through video analytics, crime forecasting, and disaster response.
• Infrastructure & Mobility:Implementing predictive maintenance, smart traffic management, and optimising public transport.
• Sustainability: Improving energy efficiency, waste management, and environmental monitoring.

Navigating challenges: Where the UK can lead

The path to AI-powered cities is not without hurdles. The report identifies key challenges where the UK tech sector's expertise is crucial:

• Data & Infrastructure: Cities require modern, secure, cloud-based platforms and integrated data management systems to support AI initiatives.
• Skills Gap: There's a pressing need for AI talent and training within public sector bodies. UK firms can partner on training and solutions development.
• Security & Privacy: As AI relies on vast datasets, robust cybersecurity measures and privacy-preserving techniques are paramount. AI itself is being used to bolster cyber defences.
• Responsible AI: Ensuring fairness, transparency, and accountability is vital for public trust. Cities are establishing governance frameworks, AI registries (like Amsterdam and Helsinki ), and specific GenAI usage policies (e.g., Boston, Seattle, Singapore). UK tech can provide solutions and expertise in ethical AI deployment, aligning with evolving regulations like the EU AI Act.

The road ahead: Collaboration and innovation

Our report outlines key strategies for cities aspiring to AI leadership, including top-down commitment, fostering innovation ecosystems, combining AI with technologies like IoT and Digital Twins, and prioritising security. Success hinges on strong public-private partnerships. UK companies are ideally positioned to collaborate with city authorities, academic institutions, and other stakeholders to co-create solutions, share expertise, and build the necessary digital foundations.

The transformation into AI-powered cities is well underway. For the UK technology sector, this represents a significant opportunity to drive innovation, enhance urban living, boost economic competitiveness, and solidify the UK's position as a global leader in responsible and impactful AI deployment. By addressing the challenges and leveraging the insights from global leaders, the UK can be instrumental in building the smarter, more efficient, and sustainable cities of the future.

AI-powered cities of the future | Deloitte Global