The IDC FutureScape 2026 report emphasizes the transformative potential of Agentic AI and large language models (LLMs) in advancing smart cities. Cities are increasingly adopting AI tools to address budget constraints and public demands. By 2027, 65% of cities will integrate AI agents to streamline workflows and reduce inefficiencies caused by fragmented systems. This shift marks a transition from viewing technology as mere tools to seeing them as collaborative partners, enhancing decision-making and service delivery.
Additionally, by 2026, 50% of governments will invest in fine-tuning LLMs to extract insights from historical data, improving context-aware decision-making. Successful implementation requires robust data governance, strategic HR partnerships, and a focus on accountability. Early adopters like Boston and Barcelona illustrate the benefits of deploying AI in urban planning. For city leaders, prioritizing agility, ethical frameworks, and community engagement will be crucial in realizing the potential of AI-driven transformations.
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