INSIGHTS

What is a Smart City

14 minute read

Sep 4

Innovation Director

Sand Technologies

Imagine living in a city where everything is seamlessly connected, from transportation systems to energy grids to essential services, creating an efficient and sustainable environment that helps the community thrive. That’s the promise of smart cities — urban areas that use technology and data analytics to enhance the quality of life for residents and businesses while reducing environmental impact.

By leveraging connectivity, artificial intelligence (AI) and real-time data, smart cities aim to optimize resource management, enhance public services and foster economic growth. As successful projects worldwide have shown, the smart-city concept is also a forward-thinking solution to address climate change and rapid urbanization, ultimately helping to create a better future for all.

An Overview of Smart Cities

As of 2023, 57% of the world’s population lives in cities. The United Nations predicts the percentage will grow to 68% by 2050. These growing urban populations will continue to pressure city services and resource availability, even though those critical areas are already strained. With that backdrop, it’s no wonder the smart city concept is gaining momentum.

The definition of a smart city is a municipality that uses technology and data to address every aspect of city living. By integrating the Internet of Things (IoT), AI and big data analytics, smart cities aim to create a seamless, connected environment where everything operates more efficiently, from utilities to public services.

The ultimate goal is to build urban spaces that are more livable, resilient and ready for future challenges like population growth and climate change. Whether through energy-efficient buildings, intelligent transportation systems or digital governance, smart cities are a modern and welcome approach to improving urban living. But where can city leaders start their journey?

Understanding How Smart Cities Work

The first step is to understand the basics. In a smart city, a network of AI-driven technologies, interconnected sensors and advanced data analysis work harmoniously to create a more efficient, sustainable and livable urban environment. These cutting-edge systems continuously gather data, analyze patterns and produce informed insights that enable city leaders to enhance just about everything for their constituents. These technologies form a backbone that supports a forward-thinking community.

Per the IMD Smart City Index, one of the top priorities of smart-city leaders is improving sustainability. In that area, AI can provide measurable results. When integrated with sensors, AI can monitor air and water quality and improve energy management with precise metering and analytics to optimize energy consumption. Smart energy initiatives that use IoT and digital twins can manage renewable energy integration such as wind turbines, solar panels, hydroelectric dams and geothermal and biomass sources. AI can inform smart-grid transformations and make buildings smarter with advanced systems like intelligent lighting and HVAC control to eliminate energy waste.

... technology has propelled smart cities from a futuristic concept to a tangible and impactful reality...

Sensors can also inform AI networks that optimize traffic flow, which reduces energy consumption as well as emissions. In Barcelona, for example, an IoT-powered urban platform integrates extensive data from sensors deployed across the city to manage everything from parking availability to waste management. In Singapore, leaders leverage AI to deliver real-time data insights that enhance public safety, manage traffic flow and predict potential infrastructure failures. And in Amsterdam, smart city projects utilize AI to monitor and control energy use, significantly reducing the city’s carbon footprint.

The power of AI 5G smart cities has made many other use cases possible, largely due to 5G’s high speed and low latency for rapid data transmission. Using 5G, smart connected devices can collect and analyze data in real time, providing city leaders valuable insights either independently or via a comprehensive “city dashboard.”

For example, IoT devices can enable proactive maintenance for public housing facilities, ensuring timely repairs that reduce operational costs and prevent citizen inconvenience. Using data analytics from a connected infrastructure, officials can also predict and prevent issues throughout the water system, reducing costly leaks and bursts. These examples merely scratch the surface of how IoT transforms urban landscapes.

Smart City Evolution and Technological Advancements

Smart cities may seem futuristic, but their roots trace back to the early 2000s, when urban planners began integrating digital technology into city infrastructure to improve efficiency and quality of life. During the past decade, the concept of smart cities has evolved significantly, driven by rapid technological advancements. Integrating IoT devices, AI, advanced data analytics and the capabilities that 5G enables have transformed how cities operate, offering innovative smart city AI solutions even while some enterprises struggle to identify and deploy impactful AI use cases.

One of the more common AI applications for smart cities comes from traffic management. Using real-time data from sensors and cameras, AI can help mitigate traffic congestion by predicting and responding to emergencies more effectively. Public transportation systems can also become smarter, offering real-time updates and seamless integration with other transit modes. Furthermore, smart grids, smart water infrastructure and management and renewable energy sources are helping cities reduce their carbon footprint.

In short, technology has propelled smart cities from a futuristic concept to a tangible, impactful reality, setting a new standard for future urban development.

These emerging technologies — 5G, IoT, AI and big data — are advancing the smart city landscape. Smart city examples from Singapore, Barcelona and Toronto show that initiatives ranging from autonomous public transportation to intelligent waste management systems can be brought to life in exciting new ways. Further innovations in utilities AI may usher-in the next wave of city transformation, helping leaders tackle critical issues like sustainability and resource management.

What Types of Smart City Technologies are Used?

The smart city concept redefines urban life by integrating cutting-edge technologies (AI, smart energy, IoT, automation and digital twins) to help city planners make data-driven decisions.

Environmental sustainability is one crucial aspect of a smart city. As discussed earlier, technology can improve sustainability by managing air quality, water quality, climate change mitigation, natural resource conservation and renewable energy integration. Some specific examples include precise metering and analytics to optimize energy consumption, and smart grids that monitor electricity flow and anticipate demand. Even buildings can reduce waste by matching consumption to need.

IoT devices make many of these endeavors possible. For example, IoT connects everyday objects like streetlights and waste bins to an intelligent network, optimizing resources and services in real time. All data is collected using telecom AI and analyzed to help city planners make informed decisions about infrastructure management, public safety, transportation, energy efficiency, waste management, citizen engagement and even health and wellness.

Of course, city teams are only so large. How are mayors, managers and others expected to do it all? They’re not. Smart cities rely heavily on automation to perform various tasks with minimal human input. In two simple examples, water-quality monitors can be automated to trigger chemical-level modifications if necessary, and AI can be used to analyze real-time traffic-camera footage that then automatically dispatches the police if criminal behavior or other emergencies are detected.

Together, these technologies create a harmonious, efficient and sustainable urban ecosystem that promises residents a place not just to live, but to thrive. That is the heart of the smart city concept.

Community Engagement in Smart City Projects

Smart city KPIs are measurable results, but there are direct and indirect benefits.

As with any civic endeavor, the role of the community in designing smart cities cannot be overstated. Collaboration with residents ensures that these initiatives are technologically advanced but also equitable and inclusive.

Smart-city programs require data collection from many sources – sensors, IoT devices, mobile applications, social media and administrative systems – and citizens should know about (and agree to) data collection and its intended use. Citizen involvement may even shed light on new use cases that city leaders hadn’t anticipated or imagined.

Community engagement is especially important considering public data collection can move beyond traffic data and signal-optimization to address sensitive areas like health and illness trends (as we saw during the height of the COVID pandemic). Smart cities must ensure data collection processes protect privacy, integrity and reliability, and they can only achieve that with regular citizen input.

When city planners and tech developers engage with citizens, they gain insights into diverse populations’ unique challenges and needs. For instance, Barcelona’s Smart City initiative has been a global benchmark due to its focus on community involvement. By hosting public forums and leveraging digital platforms for feedback, the city has successfully implemented solutions that cater to everyone, from improved public transportation systems to accessible urban spaces.

Similarly, in Portland, the Smart City PDX project prioritizes equity by actively involving marginalized communities in decision-making. These examples underscore the importance of a community-centered approach to create smart cities that genuinely serve all their inhabitants and foster a sense of belonging and shared progress.

Measuring the Success of Smart Cities

Smart cities are emerging as beacons of efficiency and sustainability. The trick for city managers is not only proving that impact, but proving a good return on investment. After all, most cities use tax dollars to kickstart or fund their smart-city initiatives. So which KPIs can leaders use to measure the success of smart city projects?

KPIs for smart cities are multifaceted. They encompass the technological infrastructure of course, but also the social and environmental dimensions that make cities livable and sustainable. Understanding these KPIs is crucial for policymakers, city planners and residents alike, because they provide a roadmap for continuing to transform urban landscapes into smarter, more resilient ecosystems.

KPIs are measurable results, but there are both direct and indirect benefits. KPIs for smart cities should measure direct benefits in categories like investment efficiency (how efficient investments are), smart environment (sustainability improvements) and indirect benefits such as smart living (easy access to services and improved safety and security) and smart mobility (efficient transportation). Improvements in each area are measured with specific data and metrics, such as energy efficiency, air quality, traffic flow and citizen engagement. In smart cities around the world, a few notable successes include:

  • Detroit, Michigan, reduced crime by 50% using connected surveillance cameras, improving citizen safety (a KPI for improved smart living).
  • Copenhagen has reduced carbon emissions by 42%.
  • Singapore uses data analytics to streamline transportation, reducing peak travel congestion by 25%.


These smart city KPI successes demonstrate the importance of leveraging AI and data-driven insights to create efficient, sustainable and user-friendly urban environments. Other cities can learn from the successes and challenges of these projects to adopt best practices and innovative solutions that improve urban living.

Smart City Examples

The concept of smart cities originated from the growing need to address urban challenges brought about by rapid urbanization. Today, the idea of a smart city has evolved into a comprehensive approach that creates more efficient, resilient and livable urban environments.

Singapore launched its smart city initiative in 2014. To reduce bottlenecks, it adopted contactless payments for the 7.5 million commuters on public transport. As its population continues to age, Singapore has expanded its use of technology to emphasize telehealth and wearables for monitoring citizens’ vitals.

Barcelona, which in 2015 was named “the most wired city in the world” due to its high smartphone adoption, extended WiFi across the city, with apps designed to support and improve citizens’ daily life. The seeds for this work were sewn years earlier, when Barcelona in 2012 added 19,500 sensors to manage parking, street lighting, waste disposal and other aspects that enhance sustainability and convenience.

Seoul, considered the world’s first smart city, puts data at the center of all its initiatives. This data foundation – key for any AI project as well – constantly accumulates and analyzes data so city leaders can improve everything from traffic flow patterns to air quality. The tech-forward city even has technology that allows officials to detect crime patterns.

New York, one of the smart cities in the U.S., has been adding sensors in critical areas to act as a foundation for a smart city pilot program. The data collected will help develop digital solutions to improve city services. The city is also converting old phone booths into smart hubs with WiFi and EV-charging capabilities.

Seattle, however, is the smartest city in the U.S. Recently, it launched a new initiative to improve its use of data for decision-making, collaboration and privacy protection. This program includes a public Tableau site with dashboards and visualizations to help address all aspects of smart city living, including infrastructure, transportation and climate change management.

The sustainability aspects of Seattle’s approach are echoed on an even wider scale in Norway. The Scandinavian country is leading the way in energy-efficient buildings, with sensors able to adjust lighting and temperature as needed. And while it’s not specifically related to smart cities, the country’s tech successes with sustainability have emboldened Norway to set a goal of making all modes of transport emission-free by 2028.

Learn More About Today’s Smart City Solutions

Urban populations are expanding at an unprecedented rate, putting incredible pressure not only on city leaders, but on the finite resources available to them. The concept of smart cities has emerged as a crucial solution to myriad urban challenges, with diverse technologies – namely connectivity, AI and data analytics – helping leaders enhance citizens’ quality of life. From intelligent traffic-management systems to energy-efficient buildings, smart cities are adapting and responding to the sustainability and day-to-day needs of their growing populations.

Sand Technologies’ work leveraging AI and data analytics for smart city projects ranges from optimizing water-management systems and enhancing communication networks to planning infrastructure expansion and EV charging networks.

Imagine a city where every drop of water is accounted for, communication flows seamlessly through intelligent infrastructure, and sustainability is not just a goal but a reality. By harnessing the power of AI and data, smart cities can address the immediate pressures of urbanization while paving the way for a more-sustainable future filled with smarter, more efficient and, ultimately, more livable cities.

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