Edinburgh is the only UK city to be named an AI leader in a new report published by Deloitte, which examines how global hubs are harnessing AI, from machine learning and robotic automation to genAI and AI agents.

The international consultancy analysed the AI plans, investments and practices of 250 cities in 78 countries around the world, looking at how they are harnessing emerging technology to transform urban services.

The AI Powered Cities of the Future report found that of the hundreds of worldwide locations considered, only forty-nine, including Edinburgh, were ranked as AI leaders.

According to Deloitte, these cities are drivers of innovation already pushing the potential of AI to stimulate greater productivity, economic growth and competitiveness, with the findings highlighting Edinburgh’s use of AI to advance standards in living and health.

However, Edinburgh is among only a handful of smaller cities in Europe that were considered firmly established as AI leaders, along with places like Bratislava, Helsinki, Tallinn, and Montpellier in southern France.

Deloitte’s report found that while 43% of larger cities are making widespread use of AI, just 12% of smaller ones are able to do the same — a figure that drops to 4% when it comes to genAI specifically.

However, over the next three years, AI is expected to expand exponentially across almost every city surveyed, regardless of size, with 48% planning to make wider use of AI by 2027, compared to just 18% doing so today.

The study found that most cities are developing AI across various domains, including for the automation and streamlining of government operations (44%), to improve safety and resilience (42%), for infrastructure construction (34%), as well as for transportation systems (30%).

Among the top ten most effective AI use cases identified by Deloitte were for traffic management in Ostrava, predictive maintenance in Marseille, fraud detection in Sao Paulo, and urban planning in Rosario, Argentina.

Keeping Edinburgh in mind, the report found that cities marked as AI leaders had made significantly more progress than others across health, security, sustainability, and mobility, with Deloitte highlighting that AI leading cities are better prepared to overcome challenges likely to stall growth. 

There is a danger, however, that these gaps could widen, with AI leaders planning to spend an average of 33% more than their peers on technology over the next three years. 

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“AI has the power to catapult cities into the future,” said Michael Flynn, global leader for infrastructure, transport and regional government at Deloitte Ireland.

“By leveraging data-driven insights, AI can revolutionise urban planning and resource management, from predicting trends and managing traffic to making cities more resilient and sustainable.

“The result? A smarter, future-ready urban landscape that elevates the quality of life for all residents.”