Today's Edition
DUBAI (WAM)
The World Governments Summit (WGS) has launched a new report titled ‘Adoption of AI in Local Governments: Harnessing AI for Strategic and Operational Excellence in Local Governments.’
Developed in partnership with Arthur D. Little (ADL), the report explores a pressing issue: Harnessing artificial intelligence (AI) at the local level could transform modern city management, yet widespread adoption remains limited.
To address this reality, the WGS report presents a holistic blueprint for AI-enabled local government, drawing on global examples that demonstrate how data-driven tools can be woven into services to deliver robust results.
The scale of the AI opportunity is evident in the numbers. As set out in the ‘Adoption of AI in Local Governments’ report, global expenditure on AI-enabled public-sector solutions reached $12.6 billion in 2023 and is forecasted to climb to $78 billion by 2033.
Meanwhile, the Government AI Readiness Index has expanded its coverage to 193 national administrations, underscoring the expectation that public authorities will harness AI to redesign service delivery.
‘Adoption of AI in Local Governments’ points to clear pathways for embedding artificial intelligence into city management and highlights local governments that have begun the journey.
Among the examples, Abu Dhabi uses a virtual assistant (TAMM) to auto-process business licenses, Hangzhou uses Alibaba’s “City Brain” AI to manage urban operations such as traffic, and Accra uses AI to spot illegal dump sites.
Delving deeper, the report explores use cases spanning the USA, UK, Australia, Brazil, and South Africa that demonstrate how AI can address complex urban challenges.
Examples include Pretoria where AI-driven digital twins are being used to enhance the city’s waste collection services, and São Paulo’s “Smart Sampa” – an advanced AI-driven public safety platform designed to enhance law enforcement and public security through facial recognition technology.
Despite these promising use cases, the report notes that practical barriers to AI implementation remain high, with cost, data privacy, insufficient regulatory frameworks, operational hurdles, and skills shortages counting among them.
Underscoring the impact of these challenges, a Bloomberg study presented in the WGS report reveals that only 2% of local government authorities surveyed have reached full implementation.
To overcome the challenges, ‘Adoption of AI in Local Governments’ proposes solutions across five key areas:
1. Strategic partnerships to secure funding: Financial barriers can be overcome through regional collaboration and cost-sharing initiatives.
2. Ensuring trust through data governance: Open communication about how data is used – and clear policies ensuring privacy and ethical standards – can significantly increase community acceptance and build trust.
3. Navigating regulatory complexity: Early engagement with regulators, clear policy frameworks, and transparent governance structures help cities reduce compliance risk and navigate complex legislative environments.
4. Building future-ready teams: Investment in skills, internal capacity enhancement, and fostering a culture of innovation are essential steps toward sustainable AI integration.
5. Facilitating agile solutions with timely feedback: Sustainable success of AI solutions requires agility in offering the necessary services and making improvements based on feedback.
Dr. Raymond Khoury, Partner and Public Sector Lead at Arthur D. Little Middle East, stated: “Embracing AI at the local level could be transformational for cities worldwide. The obstacles to implementation are significant, but real-world use cases demonstrate what is possible when strategy, vision, and investment align. The task facing local governments is formidable, but they do not need to tackle it alone. Shared efforts can go a long way in building the cities of tomorrow.”
