From Sensors to Sentience: How Smart Cities Are Getting AI-Ready

By Zack Huhn, Co-founder, Enterprise Technology Association

As artificial intelligence accelerates from buzzword to backbone, government leaders in smart cities across the U.S. and the world are asking the same question: Are we ready?

The answer isn’t just about having the right tech—it’s about building the right ecosystem. The most forward-thinking smart city leaders are preparing for AI by putting people, infrastructure, and trust at the center of their strategy.

Here’s what they’re doing—and what every city should consider next.

1. Responsible AI Isn’t Optional—It’s the Starting Line

Cities like New York and San Jose aren’t waiting for federal regulation. They’re building their own AI governance frameworks to ensure transparency, ethics, and public trust from day one.

• NYC launched an AI Action Plan and an AI Advisory Network to guide responsible deployment.

• San Jose created an AI Risk Framework to review every new application before approval.

Gov Leader Tip: If your city doesn’t have an AI ethics policy yet, make it your next agenda item. Use NIST’s AI Risk Management Framework as a starting point.

2. AI Needs Infrastructure, Not Just Imagination

Smart cities are modernizing their IT foundations to handle the demands of real-time AI—cloud, edge computing, and sensor-rich networks are becoming the new public utilities.

• Singapore blends AI with digital twins to model everything from energy use to emergency response.

• Chicago’s Array of Things gathers real-time urban data to power predictive AI models.

Gov Leader Tip: Prioritize interoperability and cybersecurity when upgrading your infrastructure. AI is only as strong as the systems it runs on.

3. Your People Need AI Skills—Not Just Your Systems

The most successful AI rollouts start with workforce development. Cities are investing in training for public officials and frontline workers—and they’re bringing citizens into the conversation, too.

• Boston runs explainers on how AI impacts data rights and daily life.

• Los Angeles has launched digital upskilling programs across its municipal workforce.

Gov Leader Tip: Empower your team with AI fluency. Partner with local colleges or create micro-credential programs for city employees.

4. The Best Use Cases Are the Ones that Serve People

Smart cities are turning to AI to solve tangible problems: reducing traffic, improving emergency response, managing energy use, and streamlining services.

• Barcelona’s AI-enabled lighting adjusts to foot traffic and weather.

• Dubai uses AI to optimize citywide electricity demand and reduce waste.

Gov Leader Tip: Start with a small pilot that shows clear public benefit. Pick a service that’s visible and valuable—like 311 responses or traffic flow.

5. Innovation Happens in Ecosystems, Not Silos

Smart cities aren’t going it alone. They’re forming public-private partnerships, launching innovation districts, and tapping the power of local startups and universities.

• Columbus, OH won the U.S. DOT Smart City Challenge by partnering across sectors.

• Helsinki opens up its city data and AI APIs to stimulate civic innovation.

Gov Leader Tip: Establish a civic tech council or innovation lab. Use it to connect city departments with researchers, vendors, and entrepreneurs.

What You Can Do Next

If you’re a public-sector leader exploring AI, here’s your quick-start checklist:

• Adopt or adapt an AI governance framework (start with NIST or NYC’s model).

• Audit your infrastructure for AI readiness and interoperability.

• Launch a workforce readiness program for city employees.

• Start a pilot project with a visible, human-centered use case.

• Engage partners across academia, industry, and your community.

The Bottom Line

AI isn’t coming—it’s already here. But in the smart city space, the leaders who succeed will be the ones who plan with intention, build with equity, and act with transparency.

At ETA, we’re helping city leaders across the country navigate this shift through policy research, partner matchmaking, and AI education programs.

Let’s future-proof our cities—together.
Join us at joinETA.org to learn more or connect with our Smart Cities working group.