Role of Artificial Intelligence in Urban Development: Study Presentation for the REGI Committee

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Explore the implications of AI in urban development, addressing key definitions, expected benefits, potential risks, enabling conditions, and EU policy. Emphasize the importance of governance in implementing AI in urban contexts, highlighting benefits like improved urban management, economic opportunities, innovative services, and citizen participation. Discuss potential risks of AI in urban areas, considering socio-economic cohesion and the winner-takes-all effect. Lastly, touch upon the necessary conditions and factors for successful AI integration.

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Artificial Intelligence and Urban Development Presentation of a study for the REGI Committee Julie Pellegrin, Louis Colnot, Laura Delponte CSIL Centre for Industrial Studies 27/09/2021 Presentation for the Committee on Regional Development 1

Objective and structure of the Objective and structure of the presentation presentation To explore the role of AI in urban development and its implications for cohesion 1. Key definitions and context 2. Expected benefits, potential risks and enabling conditions 3. EU Policy towards AI in urban development 4. Conclusions and recommendations 27/09/2021 Presentation for the Committee on Regional Development 2

1. Key definitions and context 1. Key definitions and context Defining artificial intelligence (Chap. 2 of study) human-like cognitive capabilities performed by machines narrow AI vs. general AI and artificial superintelligence AI in an urban context: the link with smart cities (Chap. 2 of study) Numerous urban applications in different areas AI + other digital technologies full smart city model Caveat! The key role of governance 27/09/2021 Presentation for the Committee on Regional Development 3

2. Expected benefits, potential risks and 2. Expected benefits, potential risks and enabling conditions enabling conditions Expected benefits from AI in an urban (rural) context (Chap. 4 of study) Improved urban management Increased economic opportunities Improved and new / better services delivered to citizens Attractive hubs for innovation The case of rural / urban areas Improved citizens participation, environmental sustainability, etc. 27/09/2021 Presentation for the Committee on Regional Development 4

2. Expected benefits, potential risks and 2. Expected benefits, potential risks and enabling conditions enabling conditions Potential risks (Chap. 4 of study) Generic risks of AI Specific implications for socio-economic and territorial cohesion Within cities Between cities and between cities and rural areas Winner-takes-all effect Balancing risks and benefits 27/09/2021 Presentation for the Committee on Regional Development 5

2. Expected benefits, potential risks and 2. Expected benefits, potential risks and enabling conditions enabling conditions Conditions and enabling factors (Chap. 4 of study) Data Infrastructure Skills, technical capacity Legal framework Governance Overall little evidence so far (Chap. 3 of study) Benefits materialise in the case of few large/high-income cities Incremental approaches adopted in middle-sized towns Different routes to digital transformation no one-size-fits-all ! 27/09/2021 Presentation for the Committee on Regional Development 6

3. The role of EU Policy in AI and urban 3. The role of EU Policy in AI and urban development development EU AI Policy and its territorial dimension (see Chap. 5 of study) Gradual emergence of an AI policy Strong emphasis on human-centered approach & risks (AI package, April 2021) Limited attention to territorial aspects at the strategic level However, existence of several relevant initiatives (e.g., DIH), especially linked to smart cities and communities 27/09/2021 Presentation for the Committee on Regional Development 7

3. The role of EU Policy in AI and urban 3. The role of EU Policy in AI and urban development development The role of Cohesion Policy for AI (see Chap. 5 of study) Major EU policy with available funding for cities and regions Strategic prioritisation of ICT (including AI but not explicitly) AI urban projects funded in practice (smart cities, smart grids) Uncertainties in assessing the extent of this support 27/09/2021 Presentation for the Committee on Regional Development 8

4. Conclusions: key take 4. Conclusions: key take- -aways aways Strong potential of AI to tackle urban and territorial challenges thanks to smart cities Also uncertainties and risks, as well as lack of evidence (especially concerning urban / rural relations) Lackof systematic & explicit policy concern for the territorial implications of AI in urban development Relevance and need for a place place- -based approach based approach 27/09/2021 Presentation for the Committee on Regional Development 9

4. Recommendations 4. Recommendations MEPs should call on the EC to ensure that Cohesion Policy Policy explicitly & effectively address AI in an urban context Scrutinise MS strategic / programming documents Ensure the tracking of AI in the monitoring system Cohesion The EP should also contribute to Consolidate a knowledge basis for better AI policy Increase awareness among citizens 27/09/2021 Presentation for the Committee on Regional Development 10

Thank you for your attention! Thank you for your attention! Contact information: Julie Pellegrin: pellegrin@csilmilano.com Louis Colnot: colnot@csilmilano.com 27/09/2021 Presentation for the Committee on Regional Development 11

1. Key definitions and context 1. Key definitions and context Back to presentation Source: European Commission, 2020 27/09/2021 Presentation for the Committee on Regional Development 12