Over the last decade, the concept of a “smart city” has materially evolved from a utopian dream to a tangible reality for urban planners. During 2025, cities around the world will continue to integrate artificial intelligence (AI) into their core functions, from traffic management and crime reduction initiatives to social inequity plans.
Now, as we enter 2025 with the smart city agenda, questions still remain. Will AI-powered smart cities deliver on the promise of a global transformative effect? And how will AI smart cities intersect with the human needs of ethics, social equity and individual well-being rather than embarking on a dystopian “hyper-efficient” solution that is devoid of the essence of unique human culture?
The smart city of 2025 is a powerful construct that, if used with intention, can improve outcomes for millions of people. We must ensure that there is a continuous focus on people and the communities that we are serving, leveraging technology to enhance the outcomes for all, especially the most vulnerable in society.
The Promise Of AI In Urban Life
Smart cities in action bring the “smart city promise” to life for society’s benefit.
As an example, Raleigh, North Carolina, has embraced a smart city strategy to improve the quality of life for its residents, supported by technology innovation and regional collaboration. Raleigh, one of the fastest-growing US regions, is also rated among the best places to live and recently won IDC’s “Smart Cities North America” award. The program focuses on integrating technology to improve operations and community well-being, with a mission to utilize technology and data to meet city and community goals.
But it’s not just about efficiency. AI holds the potential to address systemic inequities that have plagued urban life for centuries. For instance, generative AI can model housing policies that reduce homelessness without exacerbating gentrification. Agentic AI could predict and mitigate the environmental impact of urban expansion, ensuring sustainability is embedded in growth. These are no longer theoretical applications; pilot programs in cities like Amsterdam and Singapore are already proving their feasibility.
The 2025 Smart City Top 5
With all the promise of a positive impact for equality, the environment and well-being, what will we see in 2025?
- Prioritizing Sustainability With AI Insights
In 2025, sustainability will be foundational for all smart city initiatives, with cities monitoring energy, water, traffic and waste in real time. AI models will facilitate this monitoring of environmental impacts, allowing preventative action and energy equality, like the Climate Ready Barcelona Project. This will have a net positive impact on supporting cities to help cut emissions and meet their climate targets.
- Illuminating Blind Spots In Urban Planning With Generative AI
The additive effect of generative AI in a smart city environment provides policymakers and city operators to see the blind spots in their existing plans and decision-making, as highlighted by research such as the IF-City research in New York. Leading to opportunities for better outcomes for citizens and the unique culture of each individual location. AI models will create actionable policy ideas and predict public sentiment to show the impact of planning decisions on society.
- Automating City Services With Automated Workflows
Districts like the State of South Dakota will automate workflows to streamline the repeating government services, such as applying for permits, requesting information and reporting issues. These automations will lower city costs and improve resident satisfaction.
- Enabling A Safer Community With AI Digital Twins
Initiatives such as the Global Initiative on Resilience to Natural Hazards through AI Solutions will encourage smart city leaders to adopt AI solutions and digital twins to model the urban environment for planning, safety, and resilience. This will allow a 360-degree city view encompassing data from what were previously multiple silos. The result will be a single, fully integrated model combining population, traffic, weather, energy, sentiment, economic, public health and crime data into one of the most powerful enablers of safer future cities.
- Reducing Urban Equality Challenges With Data
In 2025, smart cities will have a tangible impact on reducing inequality in urban life. This is an opportunity for us to redefine how a city delivers services to citizens and supports them through their significant life milestones and on a day-to-day basis to improve the quality of life and reduce inequality in areas from education to homelessness.
Humans are naturally biased, which often leads to emotional decisions rather than ones that are logical and data-based. Once an agentic AI has access to common urban data points, there is a huge opportunity to identify patterns and to provide a “counter-narrative opinion” that may challenge traditional policy decisions, to the benefit of social equality.
Looking Back To Move Forward
As we race into 2025, it’s vital to reflect on the human element that makes urban culture unique to each city. In November, I participated in a smart city discussion by the World Economic Forum, focusing on Ukraine’s rebuild. Unlike other cities advancing smart initiatives, Kyiv has the opportunity to reimagine its landscape. Even though the conflict is still ongoing, a post-war “blank canvas” offers planners the freedom to embrace AI, efficiency and a digitally ready future.
However, even with this theoretical “blank canvas,” the people of Kyiv have other priorities. Instead of focusing on an AI-optimized future, they dream of rebuilding the homes, streets, schools, and hospitals that define their city. They seek to reconnect with their past and preserve the connection between people and place.
This highlights that even in post-war rebuilds, human decision-making prioritizes community and heritage over total efficiency. City planners must balance progress toward a digital future while honoring the historical identity of each local area.
Hype Or Hope?
As we move into 2025, the vision of AI-powered smart cities is no longer just a futuristic dream but a present-day possibility—if approached with care and intention. The challenge ahead lies in transcending technical efficiencies to create cities that are not only smarter but also more inclusive, equitable and human-centric.
I’m excited for the year ahead.
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Autor(en)/Author(s): Nick Herbert
Quelle/Source: Forbes, 24.01.2025

