
The accelerating transition to artificial intelligence (AI) is fast-tracking the era of smart cities. With AI analyzing and learning from data collected throughout urban environments, futuristic cities that boost productivity and improve quality of life are becoming a reality.
AI-powered smart cities use AI algorithms to analyze real-time data collected by sensors and IoT devices installed throughout the city, enabling optimized urban management.
To achieve this vision, major global cities are implementing digital twins – virtual replicas of the physical world – and integrating them with existing infrastructure. In the future, AI is poised to become the city’s brain, overseeing autonomous vehicles, robotic delivery systems, and other advanced urban technologies.
Singapore, often cited as a model for successful smart city implementation, is gaining attention for its AI and digital twin-based smart traffic system. AI monitors traffic flow in real-time and adjusts signals accordingly, reducing urban traffic congestion by approximately 15 percent.
In the United States, Los Angeles, and in Spain, Barcelona, AI-based predictive traffic management systems have been adopted to alleviate congestion and reduce air pollution. Barcelona’s intelligent lighting system automatically adjusts brightness based on human movement and ambient noise levels, cutting annual electricity consumption by about 30 percent.
Toyota is pursuing its futuristic urban development project in Woven City, Japan. Located in Susono, Shizuoka Prefecture, this experimental city integrates AI and IoT with autonomous driving, robotics, and hydrogen energy technologies. Residents will begin moving in during the second half of this year, with around 2,000 people expected to live there. All buildings will be connected through underground tunnels, and autonomous vehicles will handle waste collection and deliveries.
Saudi Arabia has chosen South Korean tech company Naver to partner in building the digital twin platform for its NEOM City project. Under a contract worth approximately 100 million dollars signed in 2023, Naver is developing digital twin platforms for five major Saudi cities.
Several cities in South Korea are also accelerating the development of AI-powered smart cities.
In Sejong City, a collaboration with the Electronics and Telecommunications Research Institute (ETRI) led to the creation of a digital twin-based “Virtual Sejong.” This virtual replica of the city simulates solutions to various urban challenges and determines optimal responses.
Busan is building an AI-based smart city centered around Eco Delta City. To establish itself as a global AI hub, Busan aims to transform Eco Delta City into a laboratory for AI research and development. The city is piloting over 40 innovative technologies, including smart water treatment facilities and robotic services, to realize a future-oriented urban model.