Wednesday, 14 January 2026

The potential of AI for urban intelligence

IEC E-tech

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Artificial intelligence (AI) can supercharge urban intelligence with the help of digital twins and sensors, as long as international standards are part of the equation. The citiverse is on the horizon!

Rome won the title of Smart City of 2025 at the Smart City Expo World Congress in Barcelona, which took place in November last year. The award was to reward a data-driven initiative that improves governance and public services, with the Italian capital rolling out 1 800 Internet of Things (IoT) sensors and more than 2 000 cameras connected by Wi-Fi, 250 km of fibre-optic cables and 5G networks across its public squares and busiest metro stations.  

The concept of “smart cities” emerged in the early 1970s, when civic authorities began to collect and analyze data about services to help them make decisions about planning and policy. As the volume and capability of digital sensors and communications networks have advanced, so too has the scope of smart cities. Projects now range from managing more efficient transport and traffic systems to security surveillance, faster emergency response, enhanced medical care and sustainable energy use.

AI and digital twins

The fast development of AI is viewed as a means of accelerating those goals. “Cities globally are sprinting to adopt AI,” says consultancy Deloitte in its report AI Powered Cities of the Future. AI is seen “as a driver of greater productivity and efficiency and, ultimately, economic growth and competitiveness”.

A key part of smart city development is digital twin technology – a digital replica of the city – which makes it possible to see how decisions affect urban life before they are deployed in the real world. This is now evolving into the citiverse, an AI-driven virtual city which is expected to be more efficient, more interactive and more transparent than a smart city, ultimately supporting more participatory governance.

Sensors are everywhere

Fortune Business Insights projects that the IoT sensor market will surpass USD 4 trillion by 2032, growing at a remarkable 24% a year. IoT sensors can be added to digital devices like cameras and non-digital street furniture like waste bins to measure the status of garbage containers while air quality meters measure pollution and light levels.

There is clear overlap between the markets for the IoT and that for smart cities. The value of the latter is estimated to top USD 3,7 trillion globally by 2030 growing at a compound annual growth rate (CAGR) of 29,4%. Rapid urbanization, which according to some figures, will see 68% of the world’s population living in cities by 2050, is putting governments and municipalities “under immense pressure” to improve infrastructure and adopt sustainable and efficient city planning solutions.

Such solutions include smart LED lights with motion detectors to save electricity; interoperable smart home technologies to reduce carbon emissions and electrotechnical waste; more accessible and personalized healthcare; and connected transport systems which monitor traffic conditions in real time with safety and traffic management benefits.

Virtual simulation

The holistic data-centric and real-time view of a city is increasingly being visualized virtually. By creating 3D digital twins of cities, “planners can simulate and test the impact of new developments, identify potential issues, optimize city services and proactively create policies to avoid future impact,” explain analysts at Capgemini.

Singapore is widely held to have launched the first virtual model for smarter urban planning. Dozens of other cities include Helsinki, with its virtual rendering of the city’s environment, operations and changing circumstances; and Rotterdam, which debuted its Open Urban Platform last January, and into which not just the city authority but companies, schools and residents are encouraged to participate and “exchange all kinds of data”.

Big data requires AI and machine learning

In order for projects like these to scale, smart cities must be able to manage the “unprecedented surge in data generation and flows” from diverse datasets of public and private infrastructure. Urban Data Platforms – described as the “central nervous system” of a smart city – perform the role of aggregating, processing and analyzing data from across the urban area, captured by sensors. The application of artificial intelligence and machine learning (AI/ML) to this platform layer (and to the IoT sensors themselves) is claimed to supercharge performance by enabling cities to “move beyond reactive management to proactive, data-driven governance”.

For example, AI/ML algorithms can analyze historical and real-time data to predict traffic congestion or potential crime hotspots. Beyond prediction, AI tools can recommend actions, such as optimizing waste collection routes, and identify data anomalies that might signal water leaks so that preventative measures can be taken before the situation worsens.

According to one report, it is the application of AI that “turns connected devices into smart devices”. Calling this shift “urban intelligence”, a developer of AI-powered sensors says that cities in Australia suffered “persistent problems” in managing urban environments before the introduction of AI. Issues related to “manual data collection, unstructured data and limited feedback loops with residents” led to delayed or inaccurate insights and missed opportunities.

Devices and software augmented with AI and fed into a urban platform can unify disparate data sets, spot patterns and apply analysis rapidly to deliver insights or automate responses. One result, given by the Australian developer, is the automatic optimization of traffic signals to ease congestion, which in turn leads to “smoother commutes, reduced emissions and increased public transport reliability”. 

Challenges and standards

The caveat is that while there is strong interest (from 96% of city mayors in one survey) in using AI to augment smart city infrastructure, today there is still little practical implementation of the technology. Questions remain around the impact of AI on city services and its ethical, legal and social implications.

That is where international standards can play a role: their use and implementation can reassure decision-makers that these aspects have been taken into consideration. Standardization in AI is carried out by the joint technical committee formed between the IEC and ISO, ISO/IEC JTC 1/SC 42, which considers the entire ecosystem in which AI systems are developed and deployed. The committee develops horizontal standards that provide a foundation for creating AI solutions across diverse industries. It is increasingly addressing societal and ethical issues, such as how to avoid bias or how to protect human rights.

The three mains standardization organizations, the IEC, ISO and ITU, have just published a joint statement on the governance of AI during the International AI Standards Summit, which took place in Seoul in December 2025. The statement sets out a joint vision and commitments from the three organizations for how international standards will support the development and deployment of trustworthy AI systems that benefit society, drive innovation and uphold fundamental rights.

From smart cities to citiverse

The first meeting of an initiative designed to shape the future of cities in relation to AI-powered virtual worlds convened in November 2025. Led by ITU and United Nations International Computing Centre (UNICC), the meeting touched upon the concept of citiverse, which is partly viewed as the ideal future of the smart city.

“The citiverse can be seen as the next digital frontier for cities,” explains Cristina Bueti, the Counsellor on Smart Sustainable Cities, Citiverse & Virtual Worlds at ITU. “It goes beyond the smart city by creating a trusted, immersive digital environment where cities can leverage enabling technologies such as artificial intelligence, virtual reality and extended reality.

“In the citiverse, AI acts as the backbone, allowing cities to offer citizens new immersive experiences and to enhance the city itself through digital layers that are interactive, predictive and participatory. This creates a shared digital space where leaders can test decisions in advance, improve services and design better solutions before implementation. It allows cities to anticipate drawbacks and understand the real impact of policies from the citizens’ perspective”, she adds.

Interoperability is the key requirement

A shared citiverse is being built under the European Union’s Digital Decade Programme 2030 where different cities can interoperate and collaborate. “Interoperability is the first challenge to address,” Bueti says. “Today, many cities cannot even share data with their neighbouring cities because they rely on vendor-specific platforms. A shared citiverse would allow cities to share data, procurement solutions and services, achieving efficiency gains in cost, time and service delivery – all with the goal of better serving citizens.”

Learning from neighbouring cities and sharing data improves the quality of decision-making by allowing cities to base policies on broader datasets rather than isolated local information. “In Europe, this aligns well with an existing human-centric framework that emphasizes accessibility, interoperability, safety and the protection of fundamental rights,” Bueti stresses.

Fourteen European countries have declared participation in the project including the Netherlands where Rotterdam recently upgraded the head of its digital city programme to be the world’s first Chief Citiverse Officer. As Bueti notes, the citiverse is a nascent concept and is dependent for its success on the building blocks of regional data, service interoperability and metrics to evaluate progress. It is also dependent on standards for interoperability and trustworthiness. The more standards are used, the less likely solutions will be proprietary and not talk to each other.

In December 2023, the Standardization Landscape for CitiVerse was published by European standardization experts, listing around 350 standards and other deliverables. It includes standards such as ISO/IEC 30141 for an IoT reference architecture, and the future ISO/IEC 3018 for a digital twin architecture, both published by ISO/IEC JTC 1/SC 41, as well as IEC 63205 for a smart cities reference architecture, published by the IEC Systems Committee for Smart Cities.

In addition, the IEC has recently joined forces with ISO to create a new joint technical committee, ISO/IEC JTC 4, which prepares standards for smart and sustainable cities and communities. The committee aims to build on the existing work of the IEC and ISO to foster the development of standards in fields such as sustainability, community infrastructure, digitalization, and more.

“We strongly value the long-standing collaboration between international standards organizations such as the IEC and ISO. Our goal is not to reinvent the wheel, but to build on the excellent work already done. Frameworks being developed will help cities think from the start about the technical structures they need to adopt the citiverse effectively,” Bueti concludes.

 

 


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