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Using AI and big data to optimize urban planning and resource management in cities

Create more sustainable, livable, and efficient urban environments by improving transportation systems, energy distribution, waste management, and public services based on data-driven insights.

101-trends101-trend-081
Publish Date2025-05-29
Updated Date2026-09-18
Horizonnow
TimeframeAlready deployable or scaling now
Confidencehigh

Beyond smart, we are building living cities: integrated ecosystems designed for a resilient, equitable, and profoundly human future.

— Jim Carroll

The opportunity

Create more sustainable, livable, and efficient urban environments by improving transportation systems, energy distribution, waste management, and public services based on data-driven insights.

From “Decoding Tomorrow: 30 Megatrends - #25 Urban Reimagination : “Beyond smart, we are building living cities: integrated ecosystems designed for a resilient, equitable, and profoundly human future.”” (July 2025)

Cities are not just growing, they are evolving into integrated systems for food, energy, transportation, and living that function very different from urban environments. This represents a massive infrastructure opportunity, particularly as 67 megacities (cities with over 10 million inhabitants) will exist, with a combined population of approximately 670 million. It’s called the ” integrated city” , and it’s a pretty significant transformation of what we think of as urban areas.

Add to this the fact that experience is showing some very real generational preferences when it comes to cities and urban areas. Millennials show a preference for dense, walkable urban cores with mixed-use developments and access to public transportation. Generation Z? The most urbanized generation expects tech-enabled city living with seamless digital services and sustainable infrastructure - something that matches the overall tech-enabled world that they live in.

Or how about the ” 15-Minute City ” concept - it’s a powerful model for human-centric design. It aims to ensure residents can access all daily necessities within a 15-minute walk or bike ride, improving quality of life by reducing car dependency. Cities from Paris to Shanghai are adopting this model to create more livable, sustainable urban environments.

From “Megatrends One Year Later – #25: Urban Reimagination – What I Predicted, and What’s Actually Happening” (September 2026)

Cities are not just growing, they are evolving into integrated systems for food, energy, transportation, and living that function very different from urban environments. This represents a massive infrastructure opportunity.

So did cities actually become “integrated urban ecosystems”? The pieces are further along than the mobility headline suggests. Digital twins — the “urban operating system” I wrote about — are now a $26.4 billion market in 2026, on pace toward roughly $428 billion by 2034, and in China they’re evolving into full “city brain” systems that fuse digital twins, IoT, and big data for real-time traffic and infrastructure management. Amsterdam, Copenhagen, and Barcelona are running live versions; the EU’s Local Digital Twins and Destination Earth programs are scaling the same approach across the bloc.

The energy and food layers moved too, just more quietly. The global microgrid market is tracking past $115 billion this year as cities decentralize power against grid strain — Asia-Pacific alone growing over 21% annually. Vertical farming crossed roughly $9.5 billion, with warehouses and parking structures turned into food production as usable land runs out. Even the “15-minute city” idea kept spreading — Vancouver’s council approved a Vision Zero mobility plan built on the same proximity logic in June.

From “AI Megatrends - AI in Agriculture - Beyond ChatGPT: It’s Not Your Granddad’s Farm Anymore!” (April 2023)

Harvesting optimization : Farming is all about intelligent decision-making - not just with things like planning and the weather, but the key question: when do we harvest? AI can analyze data on soil moisture and crop ripeness to optimize the timing of harvesting, reducing waste and improving yields.

Irrigation optimization : Water is our most precious resource, and in an era of increasing scarcity, everyone is scrambling for solutions on how to best manage it. AI can analyze data on soil moisture and weather patterns to optimize irrigation, reducing water waste and improving crop yields.

Supply chain management : A few years ago, I spoke to the American Cotton Shippers Association - and they, like many ag organizations, must continually align their supply chains to production. AI can be used to assess data on crop yields, weather patterns, and transportation costs to optimize supply chain logistics, reducing costs and improving efficiency.


Read the full pieces on jimcarroll.com:

Decoding Tomorrow: 30 Megatrends - #25 Urban Reimagination : “Beyond smart, we are building living cities: integrated ecosystems designed for a resilient, equitable, and profoundly human future.”
Megatrends One Year Later – #25: Urban Reimagination – What I Predicted, and What’s Actually Happening
AI Megatrends - AI in Agriculture - Beyond ChatGPT: It’s Not Your Granddad’s Farm Anymore!

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