Building the smart city: Promise, pitfalls and the people at its heart

At a sprawling urban expo in Baku, visitors paused before giant digital screens flickering with flood simulations, subway control systems and virtual replicas of entire neighbourhoods. Across the space, cities offered a vision of urban life reshaped by artificial intelligence, digital infrastructure and real-time data – a glimpse of what many governments now call the “city of the future.” A smart city in practice Few cities illustrate the scale of smart-city ambition quite like Shanghai. At the China Pavilion at the thirteenth session of the World Urban Forum (WUF13) in Baku, officials showcased how the city is using big data and artificial intelligence to build what it calls a “Unified Management with One Network” platform – a vast system bringing together transportation, infrastructure, emergency response and public services. Shanghai has also sought to narrow the digital divide. Through its “One-stop Government Service” portal, residents can access more than 3,500 public services online. The city’s transportation system offers another glimpse into the future. The Shanghai Metro – one of the world’s largest, spanning more than 800 kilometres and over 400 stations – relies on AI-driven monitoring, 5G-enabled communications and predictive weather-control technologies to improve safety and reduce disruptions. Several lines already operate fully automated, driverless trains. AI systems monitor tunnels for cracks, water leaks and structural weaknesses, while vast streams of passenger data are analysed in real time to prevent disruptions across the network. Perhaps the most striking example is the Lingang Starry Sky Sponge Park. Covering 54 hectares, it combines a cosmic-themed landscape with advanced flood management infrastructure. Permeable pavements, underground filtration systems and smart drainage allow the park to absorb, clean and reuse up to 15,000 cubic metres of rainwater each day. Putting people at the centre Anacláudia Rossbach, Executive Director of UN-Habitat, which is hosting the forum alongside Azerbaijan, warned that cities are confronting multiple crises, from housing shortages and informal settlements to climate shocks and rising inequality. “We really need to max out the technologies that we have available,” she said, noting that cities remain on the front lines of climate change, conflict and rapid urbanization. But, she stressed, technology alone is not enough. “The most important thing of our work is that smart cities really need to be people-centered,” she said, adding that human rights, inclusion and equity must remain at the heart of digital transformation. She also pointed to the risks of digital exclusion. During the COVID-19 pandemic, many residents of informal settlements were cut off from education, services and remote work due to a lack of connectivity and digital access. © Bogota Mayor's Office/Cristia Who really benefits? Yet even as cities embrace artificial intelligence and digital infrastructure, some researchers caution against focusing too heavily on technology itself. “Most people understand a smart city as being technology-driven,” Gynna Millan, an architect and urban researcher from Colombia, told us. She warned that technology can either empower people or become “a tool for control,” depending on how it is used. For many cities in the Global South – particularly informal settlements that often lack basic infrastructure or reliable internet – the question is not simply whether advanced technology exists, she said, but whether it genuinely improves daily life. AI arrives at city hall Artificial intelligence is rapidly moving from pilot projects into everyday urban governance. “AI is no longer just a buzzword,” said Dmitri Atov, an adviser to the Moscow city government. “AI is a game changer for cities.” Yining Zhao, a project officer at the UN International Telecommunication Union, outlined five technological trends shaping urban life ‘World models’ — AI systems that simulate how cities and infrastructure behave in real-world conditions. AI systems that simulate how cities and infrastructure behave in real-world conditions. ‘Agentic AI’ — autonomous digital agents capable of planning and acting independently. autonomous digital agents capable of planning and acting independently. AI in the physical world — through robots, drones and intelligent machines. through robots, drones and intelligent machines. Immersive virtual environments — digital worlds for work, learning and collaboration. digital worlds for work, learning and collaboration. ‘Digital twins’ — virtual city replicas used to test scenarios in real time. Moscow already operates one of the world’s largest digital-twin systems. Updated twice a year using aerial photography, it contains more than 9,000 analytical layers used to model traffic, infrastructure and future development. The risks beneath the surface As cities become more connected, they also grow more vulnerable. In Azerbaijan, authorities say cybersec