As more cities expand AI and digital technology into government services, resident expectations are outpacing their ability to keep up.
A new analysis of the world’s largest cities found “a striking pattern” of cities that are embedding AI into services delivering faster and better resident outcomes.
The 2026 Intelligent Cities Index report from the Boston Consulting Group ranked large “intelligent” cities based on their technology outcomes, strategy, app usage and engagement, governance and partnerships, and infrastructure or funding that enables access and usage. It then grouped them into four levels by assigning scores to each category, which the report named leading, accelerating, emerging and developing.
Eight U.S. cities made the global list, comprised of 61 cities from 39 countries. London, Dubai, New York City, Washington, D.C., and Amsterdam topped the list.
Here’s how the eight U.S. cities stacked up against one another:
Cities exhibiting stronger “government readiness” for AI tended to deploy more AI, according to the report. However, a city’s level of readiness did not necessarily determine success. “Some high-readiness cities still move slower in turning capability into action, while several cities with modest readiness manage to drive meaningful deployment,” according to BCG.
Cities where residents actively use or have a positive view of AI tend to have more positive sentiments concerning its use. “Cities whose residents use smart city apps more frequently also tend to score higher on satisfaction,” BCG states.
Some recent surveys show public support for AI use in local government remains lacking.
“Adoption” scored the highest of any domain in the BCG index, signaling that more cities around the globe are embracing AI and other technologies such as resident-oriented e-government portals, digital platforms and smart city apps.
The most “mature” intelligent cities do several things well, according to the report. “They have achieved strong ecosystem and funding maturity, with vibrant innovation ecosystems and plenty of available capital,” the BCG report states. “They also advance intelligent city use cases at scale, and they’ve made AI a foundation by integrating the technology into core city operations.”
The report lays out a roadmap for achieving stronger AI and digital technology outcomes for cities:
Clarify long-term strategic priorities. Focus on where AI and digital technology can have the greatest impact and where residents engage most with local government.
Improve ways of working. Sharpen governance of the technology and find private sector partners.
Scale adoption. Use and strengthen proven AI solutions and apps and encourage resident and business engagement.
Build enablers. Improve infrastructure such as IoT endpoints or internet speed, enhance data and develop talent. “The high-maturity city is a place of ongoing collaboration between government, business, education, and the populace,” according to BCG.
