Trend Report 2025: Planning and operating thriving cities – innovation for smarter urban living

Traditional, fragmented models of governance – where local government departments operate in silos – are no longer sufficient to manage the dual challenge of meeting rising resident expectations while managing increasingly tight budgets. AI and integrated digital systems offer a way to shift city operations from reactive troubleshooting to proactive, unified, and people-centred governance.

This SmartCitiesWorld Trend Report, published in association with Microsoft, explores how artificial intelligence is reshaping public service delivery. It examines how cities are leveraging digital twins, IoT, and simulation to connect physical spaces with civic experiences, ensuring urban environments are vibrant, sustainable, and economically thriving.

The report features four main sections:

• How unified digital platforms and AI are breaking down operational silos to create a "one-stop-shop" for citizens, streamlining everything from permitting to mobility while enhancing inclusivity
• An in-depth case study on how Manchester is harnessing its legacy of innovation to drive a citywide digital transformation, focusing on inclusion, sustainability, and collaborative public-private partnerships to deliver better public services
• How forward-looking cities are utilising predictive analytics and large-scale simulation to stress-test infrastructure, model climate risks, and make strategic investment decisions with greater foresight
• Addressing the critical governance frameworks needed to balance innovation with public trust, ensuring that AI deployments remain transparent, secure, and rooted in digital ethics.

This report is designed to guide urban leaders through the necessary technological and cultural shifts being demanded by the circumstances local governments now face, emphasising that success depends as much on cross-departmental collaboration and governance as it does on the technology itself.