Asia-Pacific report EMPOWERING APACCITIES THROUGH AI Wherever you travel today, there are opportunities to stayconnected. However, upon closer inspection — particularlywhen exploring a city - you may observe that many of the Ian KriegerInnovationOfficer, APJ, Globalization, artificial intelligence (AI) and digitaltransformation are changing the way cities work - no onecan afford to work in isolation anymore and citizensexpect better connected services. From intelligenttransportation systems, to connected healthcare - AI will This report is designed to provide Asia Pacific (APAC) citieswith a roadmap for their AI journeys. It provides valuableinsights into how cities are drawing on AI and other new Section 1: AI-POWERED CITY THE AI IMPERATIVEFOR APAC CITIES Artificial intelligence is revolutionizing how cities in the APAC regionanalyze data, create content, and perform tasks, allowing them to In the future, AI will likely transform most urban services, frominfrastructure and transportation to public safety, health, and theenvironment. The rise of generative AI (GenAI) and Agentic AI will Joining forces to analyze AI usage in cities To learn how AI will reshape cities, ServiceNow, Deloitte, NVIDIA, andThoughtLab came together to study AI city investments and practicesacross 250 cities. Of those cities, 49 were in APAC, providing a richsample for benchmarking urban AI approaches within the region andcomparing them with AI strategies from other regions. The research This report, prepared by ServiceNow and ThoughtLab, provides aregional perspective on the larger, global research. It is designed toprovide city leaders in the region with insights into how to transform OVERCOMING REGIONAL The APAC region is full of many different cultures, languages, socioeconomicconditions, and geophysical characteristics. While many parts of the regionhave experienced fast growth, income inequality remains high. Two reasons While the challenges differ in each cityand country in the region, the realopportunity for an AI-powered city is to Here are the top challenges cited by cities within different APAC sub-regions: •South Asia:Rapid urbanization across highly populated, poorer cities inthe Indian subcontinent has led to a host of challenges, from high An AI-powered city holds the potential tosupport each citizen through theirsignificant life milestones and day-to-day •Southeast Asia:With their vulnerability to natural disasters and highpollution, cities in Southeast Asia rate climate change and pollution astop challenges. Economic disparities and export dependency can cause •East Asia:Rapid industrialization and urbanization have led to severepollution in cities such as Beijing and Seoul, which can also have serious —Nick Herbert Global Public Sector Executive Director, ANZ, •Oceania:Because of the high cost of living in cities such as Sydney,Melbourne, and Auckland, affordable housing and income inequality are ACROSS APAC CITIES, THE AI RACE IS ON In an effort to address key challenges, citiesacross APAC are sprinting to adopt AI, withmany seeing this technology as a driver ofgreater productivity and efficiency and,ultimately, economic growth andcompetitiveness. Singapore, for one, plansto invest more than S$1 billion in AI over the APAC cities are embracing AI tosupercharge smart city initiatives. One of the biggest opportunitiesfor AI is its ability to reach theunreached. Now, even in moreimpoverished areas, everyonehas smartphones. Technology,and particularly AI, can help fillthe gaps, enabling cities to 94%will be widely orselectively using AIin three years 67%are widely orselectively usingAI today The rise of GenAI GenAI will be a game changer for cities inAPAC. Unlike earlier forms of AI, GenAI willempower cities to draw on vast sets of datain any format, easily retrieve information, Most APAC cities are already ontheir GenAI journeys. 3xIncrease in cities widely orselectively using GenAIover the nex three years— 59% Agentic AI —Jan MorgenthalChief Transformation Officer, AsiaPacific and Japan, ServiceNow Agentic AI will go further, augmenting thisability by enabling AI technologies to takeactions on information without requiring of cities are now usingor piloting GenAI APAC CITIES LEAP AHEAD OFOTHER REGIONS IN AI USE Cities in APAC are ahead of their peers in other regions indeploying AI and plan to extend their AI lead over thenext three years. For example, 94% of APAC cities expect Growing focus on GenAI APAC cities are also jumping ahead with GenAI. About22% are already using GenAI, compared with 16% ofthose in other regions. As with traditional AI, APAC citiesplan to accelerate their use of GenAI over the next threeyears: 68% plan to widely or selectively employ GenAI, Leveraging AI across domains Cities in APAC are also ahead of cities in other regions indeploying AI across urban domains. APAC cities areparticularly ahead in using AI to improve safety, security,and resilie