IDC FutureScape: Worldwide Smart, Sustainable Cities and Communities 2025 Predictions
This IDC study provides IDC's top 10 predictions for Smart, Sustainable Cities and Communities."Smart Cities and Communities globally are innovating at new levels, in some cases, leading the adoption of GenAI to access much-needed, easy-to-use productivity tools. This is driving the need for governance, responsible AI innovation, and frameworks to avoid innovation fatigue," said Ruthbea Yesner, vice president, Government Insights, Education, and Smart Cities and Communities at IDC. "More local and regional governments understand the need to get digital data AI ready and address technical debt head-on to meet the needs of employees and the public."
IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2025, 55% of Cities and States Will Create AI Governance Guardrails to Bolster Employee Responsible AI Use, Combat Cybercrime and Disinformation, Fill National Policy Gaps, and Ensure Transparency
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2025, to Address Increasing Challenges in Services Delivery and User Experience from Technical Debt, 60% of Midsize to Large Cities Will Embark on a Major Transformation of at Least One Core Application
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2026, Digital-First Field Operations Enabled by 5G Connectivity Will Improve Worker Safety and Efficiency, with a 20% Reduction in Accidents and 40% Increase in Productivity
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2026, 50% of Large Cities Will Create New Executive Roles to Coordinate a Response to the Impact of Extreme Heat on Water Availability, Built Infrastructure, Transport Operations, and Public Safety
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2027, 40% of Smart Cities Will Use Enterprise Tools to Create Highly Custom GenAI Capabilities, Grounded in Their Data, to Provide New Services like Personalized Benefits and Customer Service
Associated Drivers
IT Impact
Guidance
Prediction 6: Due to Frequent Attacks and Staff Shortages, by 2027, One-Third of States and Midsize to Large Cities Will Move LLMs from Public Cloud to Infrastructure Inside Their Security Perimeter
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2028, over 50% of Major Cities Will Leverage AI-Enabled Software-Centric Technology for Intelligent Traffic Management to Optimize and Automate Traffic Light Operations
Associated Drivers
IT Impact
Guidance
Prediction 8: Due to a 50% Increase in Weighting of Social Value in Technology RFPs Led by Europe, by 2028, Subnational Governments Will Require Social Performance Measures and Outcomes Analysis in Technology Solutions
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2029, Cities and States Will Use Professional Services Partners to Create 30% More Cross-Departmental Innovations via Collaborative Workflows Across Data Sets That Reveal New Synergies and Opportunities
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2030, 60% of State and Local Governments Will Create Digital Twins to Make Informed Decisions About the Built Environment and Sustainable and Resilient Development for Rural and Urban Areas
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
AI-Driven Business Models — Moving from AI Experimentation to Monetization
The Drive to Automate — Toward a Data-Driven Future
Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management
Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape
Expanding Digital Security Frontiers — Fortification Against Multiplying Threats
Responsible and Human-Centric Technology — Ethics in the Enterprise
Battling Against Technical Debt — Overcoming Hurdles to IT Modernization
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