IfG.CC -
Institute for eGovernment

Smart city initiatives powered by AI are turning urban centres into models of sustainability and efficiency

In this age of rapid technological advancement, we find ourselves navigating an era marked by groundbreaking innovations. At the heart of this journey, artificial intelligence emerges as the driving force. It is fundamentally altering the way businesses and governments function around the globe, laying the groundwork for the future. Just look at the anticipated impact.

Public sector digitalization challenges and solutions for transformation success

As the world rapidly digitalizes, government agencies are under pressure to boost productivity and deliver the seamless, user-friendly services that people now expect. In the UK, this effort is driven by the government’s 2022-25 Roadmap for Digital and Data.

The Autumn Budget underscores Government’s growing commitment to supporting the public sector in digitizing its service delivery and improving outcomes. It allocates £2 billion for technology investment in the NHS and provides additional support for digital transformation in other public services. The time to leverage technology to optimize operations, increase productivity and empower the public sector is now.

• South Africa's G20 Presidency has set its agenda for digital public infrastructure (DPI) and AI.
• Yielding DPI's benefits depends on how countries design and implement it.
• The UNDP is partnering with South Africa’s G20 Presidency to advance action on DPI and AI for the Sustainable Development Goals.

Digital technologies hold immense potential for economies’ long-term development. South Africa, through its G20 Presidency, is seizing this transformative opportunity to prioritize digital public infrastructure (DPI) and artificial intelligence (AI), both critical enablers of digital transformation, on this year’s G20 digital agenda.

But cost-cutting aside, the take up of shared services may get a further boost from the PSN (public services network). It is anticipated that as many as 80% of public sector employees, or four million individuals, will be using the PSN by the end of 2014, and the two key frameworks that govern the network of networks are expected imminently.

A motion is set to go before full council on Tuesday urging Cornwall councillors to kill off the controversial shared services project.

Cornwall Council aims to create a joint venture company with a private partner which will be responsible for services including libraries, benefit payments, IT and payroll. The new firm would also provide call centre and back office services for health organisations in Cornwall.

'Connect Digitally', formerly the school eAdmissions national project set up in 2004, is a central-local partnership funded by the Department for Education (DfE) and led by Hertfordshire county council. Its focus is online school admissions and automated application for free school meals, helping achieve electronic service take-up rates in some areas of 80% or higher, the level at which the government considers services to be "digital by default". More recently its work has widened to boost take-up of all online public services.

Governments around the world are turning to AI to redefine the potential of public service. In Hangzhou, China, an AI platform nicknamed “City Brain” synchronizes traffic lights in real time and congestion drops, which can help mitigate accidents and make urban life flow more smoothly. This is not a futuristic prototype but a real-world example of AI’s capacity to transform how cities—and nations—are governed.

As the public sector grapples with new challenges, AI offers leaders an opportunity to revolutionize service delivery and advance public good.

Ludhiana, a key industrial hub in Punjab, is set to undergo a transformative phase in 2025, with a series of ambitious infrastructure projects aimed at enhancing connectivity, improving public services, and uplifting the quality of life for its residents. The city’s strategic developments will bolster its position as a commercial and logistics powerhouse, attracting investments and setting a benchmark for urban growth in the state.

A major milestone in Ludhiana’s infrastructure upgrade is the anticipated launch of the Halwara International Airport, expected to significantly improve air connectivity and foster economic growth. The airport is poised to not only boost tourism but also enhance trade and logistical operations, giving a much-needed impetus to the region’s industrial landscape. This will create new opportunities for residents, with better travel options and a more connected city.

Ambassadors from four Nordic countries and experts participated in the annual dialogue between Vietnam and the Nordic nations, themed “Effective Leadership and Public Governance, Promoting Innovation and Digital Transformation: Nordic and Vietnamese Experiences.” The event served as a platform for sharing insights on transparent governance, digital technology applications, and effective decentralization, aiming to foster a modern and efficient public administration system.

Vietnam is entering a crucial development phase with the goal of becoming a high-income country by 2045. In this context, innovation and digital transformation in public governance play a key role in enhancing management efficiency and driving sustainable growth. To facilitate Vietnam’s access to international best practices, the embassies of Sweden, Denmark, Finland, and Norway, in collaboration with the Ho Chi Minh National Academy of Politics, hosted the eighth annual dialogue on March 18 in Hanoi. This year’s event held special significance as it coincided with Nordic Day on March 23, providing an opportunity for both sides to exchange practical experiences in transparent and effective governance and the use of digital technology in public administration.

The Department of Science and Technology Samar has provided P1.5 million in technical assistance for a four-year plan to help Catbalogan City become a smart and sustainable city.

The project is about maximizing the use of technological and digital solutions as well as innovative means to improve people’s lives, creating new opportunities, and addressing future challenges in health care, education, infrastructure, security of resources, public safety, disaster risks, and climate change,” said Dr. Evelyn Bacarra-Tablante, DOST-Samar provincial director.

Public-private partnerships (PPPs) may play a critical role in the development of a national digital identity infrastructure around the world. Digital transformation initiatives and the rollout of digital public infrastructure (DPI) in Africa, Europe, and Southeast Asia show a government-led push for a shift to digital services, but involving the private sector might be key to accessing the resources needed to establish a comprehensive DPI.

The UN’s Sustainable Development Goals (SDG) are a set of aims for 2030 designed for developing nations to achieve equitable economic, social, and environmental sustainability. While DPI is tied to many of these goals, and SDG 16.9 explicitly sets out to provide a legal digital identity for all, public finance is stretched thin between these objectives, climate change obligations and other serious humanitarian concerns across the Global South and other regions. Public finance alone will likely not be able to fund a robust DPI for the nations that could benefit most from it.

In this increasingly connected global environment, the digital transformation of public services represents one of the most promising opportunities to improve the quality of life of citizens. A smart city, defined as one that uses information and management technologies to optimize the efficiency and effectiveness of its operations, not only brings citizens closer to government services, but also automates processes that generate tangible environmental benefits.

While public investment typically drives the initial development of smart cities, private sector collaboration and mixed investments play a crucial role in accelerating and sustaining the progress of this transformation.

SantoshKumar Pulijala's insightful analysis underscores the potential of technology to build a more effective, transparent, and citizen-focused public sector.

echnological advancements have profoundly transformed the public sector, reshaping governance, enhancing service delivery, and improving citizen engagement. These innovations have not only streamlined operations but also introduced new possibilities for efficiency and transparency. In a recent exploration,  SantoshKumar Pulijala provides an in-depth analysis of these developments, tracing their historical milestones, examining current applications, and envisioning their future impact on public administration.

BT is installing "Community Point" information kiosks in 50 sub-post offices in the county in partnership with the National Federation of SubPostmasters and Multimedia International Services Limited.

• Digital Public Infrastructure (DPI) enables critical societal functions like digital identity, payments and data sharing.
• DPI boosts financial inclusion, economic growth and market competition.>
• Initiatives like the World Bank's ID4D is supporting DPI adoption in at least 60 countries.

Last year, India made Digital Public Infrastructure (DPI) a central theme of its G20 presidency, championing how it uses technology to facilitate economic development, improve access to banking and reduce the costs of government services.

Microsoft’s Didier Ongena explains how generative AI, digital twins and the cloud are helping governments and city leaders to optimise operations and deliver better services to citizens

Every public sector employee in the UK spends more than eight hours per week managing data and performing routine administrative tasks, according to Microsoft’s 2024 Harnessing the Power of AI for the Public Sector report. The research shows that 45 per cent of respondents are “drowning in unnecessary administrative tasks”, with 55 per cent saying this workload negatively impacts their ability to get on with the day job, and nearly half indicating it compromises the quality of service they provide and limits how long they can spend directly interacting with the public.