The city that thinks

ARTICLE | November 20, 2025

The city that thinks

AI is creating ever-improving cognitive cities where organizations will thrive

By Jessica Constantinidis and Ian Krieger, ServiceNow innovation officers


Imagine a future where your city is hosting a major, multiday international event for the first time, only to be struck by a powerful storm. Disaster? Not quite. Your city has systematically integrated agentic AI into its operations, so everything from transit to road signage to public utilities to emergency teams works in concert. Residents will go about their lives as usual while the hundreds of thousands of visitors marvel at how everything works seamlessly. What’s more, the city seems to be learning from the experience, performing better each day as the event progresses.

That's the leap that some cities are making today, and everyone needs to pay attention. As AI evolves from following scripts to making autonomous decisions, cities are becoming self-learning organisms. Whether you’re part of city operations or a business making decisions about where to locate your next headquarters, which markets to expand into, or where to invest capital, this urban evolution just might be the main differentiator you should be considering. 

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AI-powered cities of the future 

The ingredients of smart cities—IoT sensors, intelligent traffic systems, and digital infrastructure, among other things—have been around since the 1990s and have delivered real improvements. But they're solo acts, not an orchestra. The traffic lights of yesteryear optimize flow without talking to public transit; the power company monitors the grid without coordinating with emergency services. Data is collected and algorithms are deployed, but intelligence remains trapped in silos.

Meanwhile, the pressure on cities is mounting. The population of urban areas is expected to increase from 4.8 billion today to 5.6 billion by 2035, as urban infrastructure ages and governments face budget shortfalls. The U.S. alone faces a $3.7 trillion infrastructure funding gap by 2033, with 17,000 high-hazard dams averaging 60 years old, for instance. At the same time, extreme weather events are occurring more frequently: The number of Category 4 and 5 hurricanes has nearly doubled since 1990. Here's the kicker: 70% of citizens in developed nations believe their governments aren't doing enough to address their core concerns. 

Optimizing traffic lights won't solve these challenges. Cities need to fundamentally reimagine how urban systems work together.

Evolving from the smart city concept, tomorrow’s cognitive cities will deploy agentic AI within a centralized, self-learning nervous system with visibility across both digital and physical infrastructure. These systems don't just collect data—they use that data across the system to think analytically, act dynamically, and adapt continuously.

That means instead of relying on isolated technologies such as traffic lights here and digital signage there, a cognitive city coordinates traffic signals, public transit, and emergency personnel while monitoring weather patterns and crowd density in real time to optimize movement and energy consumption. The entire urban organism moves as one.

For citizens, companies, event coordinators, and others, cognitive cities will stand out from the crowd. For business leaders, cognitive cities will be where their businesses can move faster, operate more efficiently, and attract talent that doesn't want to waste time fighting broken infrastructure. For instance, Singapore's intelligent transport system, developed over two decades ago, continuously learns and adapts, coordinating across systems rather than optimizing them individually. Barcelona's AI-driven smart grid transformation uses digital twins and predictive maintenance to scale and improve the energy network without requiring constant manual intervention, while Helsinki’s self-evolving AI agents deliver proactive services and foster citizen trust. 

These cities are charting the path forward by creating urban operating systems that evolve to meet the needs of everyone. A study on the AI plans, investments, and practices of cities around the world by ServiceNow, NVIDIA, Deloitte, and ThoughtLab found that over the next three years, the share of cities surveyed that plan to use AI will nearly triple—from 18% to 48%. In other words, the race is on to be at the forefront of utilizing AI to power tomorrow's cities.

Tomorrow’s cognitive cities will deploy agentic AI within a centralized, self-learning nervous system with visibility across both digital and physical infrastructure.”

Without a doubt, there are challenges ahead. Data privacy, cybersecurity, and digital bias remain top concerns among public sector workers. However, there’s no question that agentic AI will transform urban environments. The questions in play are which cities will lead and where your organization will be positioned when the gap between leaders and laggards becomes unbridgeable. As cognitive cities function as intelligent operating systems that think continuously, act autonomously, and improve exponentially, they will deliver superior services at lower costs while becoming more resilient, sustainable, and equitable. Will you be part of building the cognitive cities of the future?

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Author

ServiceNow innovation officer covering EMEA.

Author

ServiceNow innovation officer for APJ.

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