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OnDemand Panel Discussion: Digital twins and AI as the intelligent operating layer for cities

Jun 28, 2026  Twila Rosenbaum 7 views
OnDemand Panel Discussion: Digital twins and AI as the intelligent operating layer for cities

As cities around the world grapple with rapid urbanization, climate change, and aging infrastructure, a new generation of intelligent tools is emerging to help them manage complexity. At the forefront are digital twins—virtual replicas of physical systems—powered by artificial intelligence. These technologies are being hailed as the intelligent operating layer for cities, enabling real-time monitoring, simulation, and optimization of everything from energy grids to transportation networks.

The concept of a digital twin has evolved from simple 3D models to dynamic, data-driven platforms that integrate sensors, IoT devices, and AI algorithms. By creating a live mirror of a city’s infrastructure, planners and operators can test scenarios, predict failures, and improve efficiency before deploying changes in the real world. This is particularly valuable for sustainability and resilience goals, as cities strive to reduce carbon emissions, conserve resources, and withstand shocks like extreme weather events.

Strategic Procurement as a Climate Tool

One of the most overlooked yet powerful strategies for building local resilience is strategic procurement. Sam Markey, founder of Recurve, argues that cities can leverage their purchasing power to create long-term climate impact. By aligning procurement policies with sustainability goals—such as buying low-carbon materials, supporting local businesses, and requiring lifecycle assessments—cities can drive market transformation while reducing their own environmental footprint. This underutilized approach can also stimulate local economic capacity, creating a virtuous cycle of investment and innovation.

Kansas City Streetcar: A Catalyst for Urban Reconnection

In the United States, the Kansas City Streetcar Authority offers a compelling case study of how rail can reshape a city’s growth story. Tom Gerend, executive director, explains that the return of streetcars has reconnected downtown neighborhoods, unlocked riverfront development, and spurred billions of dollars in private investment. The streetcar line, operating as a free-to-ride service, has become a vital artery that knits together residential areas, business districts, and cultural venues. Its success demonstrates that old-school transit technologies, when integrated with smart city systems—such as traffic signal prioritization and real-time passenger information—can deliver both mobility and economic revitalization.

Sunderland’s Smart City Transformation

Across the Atlantic, Sunderland in the United Kingdom is repositioning itself as a leading smart city through digital infrastructure and low-carbon innovation. The city’s strategies focus on building a resilient, future-focused economy that leverages data-driven decision-making. Sunderland has launched digital twin projects that simulate energy consumption, traffic flows, and public space usage. These tools help city managers identify inefficiencies and plan targeted interventions, such as retrofitting buildings or optimizing public transport routes. The city’s approach highlights how smaller urban centers can lead in smart city adoption without needing massive budgets—by starting with high-impact, scalable initiatives.

Dublin’s Digital Twin and Traffic Reduction Efforts

Dublin, the capital of Ireland, offers another model for urban innovation. The city has developed multiple digital twin projects aimed at improving community services and experiences. For instance, a digital twin of the city center helps planners test traffic reduction schemes before implementation, reducing the risk of unforeseen congestion. Dublin is also focusing on economic growth by creating opportunities for local tech startups and research institutions to collaborate on smart city solutions. By integrating digital twins with real-time traffic data from sensors and cameras, the city can adjust signal timings dynamically, reducing travel times and emissions.

Smart Lighting: From Streetlights to Secure Infrastructure

An often-overlooked component of the intelligent urban layer is smart lighting. In a two-part series on cities thriving on lighting, global leaders discuss how streetlight networks are evolving from simple illumination to secure, interoperable, and future-proof infrastructure. The first episode covers approaches to smart lighting and associated cybersecurity risks, as connected lights become gateways for broader IoT networks. The second episode delves into the technology and considerations for turning existing streetlight poles into nodes for environmental sensing, public Wi-Fi, and traffic management. These applications show that intelligent lighting can serve as a low-cost backbone for digital twin data collection.

AI in Transport: Data, Workforce, and Governance

Artificial intelligence is also reshaping urban transportation. Katherine Flesh of Microsoft notes that as transport agencies turn to AI to improve services, the greatest opportunities depend on three pillars: strong data foundations, workforce readiness, and responsible governance. AI models require clean, high-quality data from sensors, ticketing systems, and user feedback—yet many agencies lack the data infrastructure to support advanced analytics. Moreover, employees need new skills to interpret AI outputs and manage autonomous systems. Finally, transparent governance frameworks are essential to address privacy, bias, and accountability concerns. Without these pillars, AI projects risk failure or public backlash.

Ecomondo’s View on Healthy, Sustainable Cities

International forums are also advancing the conversation. Ecomondo, a key sustainability event, recently discussed the priorities shaping healthier, more sustainable cities. Organizers emphasized that the SmartCitiesWorld Summit provides a valuable platform for sharing practical solutions and building new connections. Topics included integrated urban planning, circular economy principles, and community engagement. The event underscored the importance of collaboration between public and private sectors, research institutions, and citizens.

Data Foundations for AI Readiness

A dedicated OnDemand webinar titled 'Preparing for AI: Understanding the Data Groundwork with Sunderland' dives deeper into the prerequisites for successful AI deployment. The session explores how cities need to audit their data assets, establish data governance policies, and invest in interoperability standards. Without a solid data foundation, even the best AI algorithms will produce unreliable results. Sunderland’s experience shows that incremental steps—such as creating open data portals and training staff in data literacy—can build organizational readiness.

Building Trust in AI for Government Services

Another important dimension is trust. An OnDemand trend report panel discussion on 'AI for Personalised Government Services' focuses on building inclusivity in cities. As governments deploy AI for services like welfare allocation, urban planning, and public safety, they must address concerns about fairness, transparency, and data security. The discussion highlights how cities can involve communities in the design process, conduct bias audits, and provide human oversight to ensure that AI augments rather than replaces human judgment.

SmartCitiesWorld’s newsletters—both daily and weekly—compile the latest news items, city interviews, special reports, and guest opinions into a single digest. These curated updates help urban professionals stay informed about emerging technologies, policy developments, and best practices from around the globe. The newsletter serves as a resource for city officials, technology vendors, and researchers committed to building intelligent, resilient, and sustainable urban environments.


Source:Smart Cities World News


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