By Dennis Dokter, Smart Cities Lead at Nexus

Smart cities are an evolving vision of urban life, using technology and data-driven solutions to enhance sustainability, efficiency, and residents’ well-being. They aim to tackle key challenges such as congestion, pollution, and inclusivity while improving quality of life.

However, no city is ever fully “smart”, only continually evolving. Real transformation requires more than just technology, it demands an understanding of how cities function and how people navigate them. At the core of this is behaviour, both observed (how people naturally act) and learned (how they adapt to systems). For AI-powered solutions to be truly effective, they must account for both.

The role of AI-powered autonomous systems

Autonomous systems use AI, machine learning, and sensor networks to navigate urban environments with minimal human intervention. From self-driving cars and delivery drones to automated public transport, these technologies are reshaping urban mobility. While automating certain processes, such as train operations, is relatively straightforward, predicting and adapting to passenger behaviour, accessibility needs, and real-time challenges is far more complex. As transportation plays a central role in smart city development, autonomous systems offer significant potential to create more efficient, safer and inclusive urban environments, driving growth and sustainability within the area. However, AI should not replace human input but instead automate the routine tasks, allowing people to focus on meaningful decisions.

Why understanding behaviour is key

The challenge-led approach to building smart cities helps local governments understand how to improve the daily lives of their citizens. A smart city should focus on people, so making sure residents are involved in the process is important. This not only enhances inclusivity but also increases the adoption of new ideas. Urban environments are shaped by human behaviour – how people move, live and interact within a city – making it essential to design systems that genuinely meet the needs of those who use them. Traditional public consultation can be rigid, but AI-driven engagement tools allow for greater outreach, gathering diverse perspectives to refine urban systems.

City planners use data from smartphones, autonomous vehicles, and urban sensors to understand movement patterns, peak traffic times, and transport needs. This enables targeted solutions, such as increasing public transport in certain areas or expanding pedestrian-friendly zones. AI systems must also consider inclusivity. Users don’t all fit into standard categories, whether it’s ensuring mapping services account for flooding or improving navigation for neurodivergent individuals, urban AI must work for everyone. Barcelona, a leader in smart city innovation, demonstrates this approach. Its Smart City Strategy has helped reduce congestion, improve air quality, and optimise transport networks through data-driven planning.

Challenges and ethical considerations

Despite their potential, AI-powered systems face challenges that must be addressed to ensure long-term success. These systems must be reliable and work safely in busy cities. Expanding them across whole cities takes a lot of planning and investment.

• Public trust is key, people must feel secure using these systems for them to be widely adopted.
• AI is only as fair as the data behind it, without diverse input, there’s a risk that automated decision-making could reinforce biases.
• Interoperability is a challenge, and many urban systems don’t integrate due to political and market-driven barriers. Smarter data-sharing practices can help create seamless, efficient transport networks.

The road ahead

Autonomous systems can transform how cities operate and grow, but collaboration is key.  Innovation hubs such as Nexus play a crucial role in this evolution by helping to build connections across business, technology and academia, which is fundamental to shape smarter, more connected communities. Smart policies must balance technological innovation with human needs, ensuring urban development enhances both mobility and quality of life. By striking the right balance, cities can remain liveable and connected while also evolving into smarter, more sustainable spaces that enhance quality of life, empower marginalised communities and benefit both people and the environment.

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