Cities Need to Prepare Now for Disruption from Artificial Intelligence According to Oliver Wyman Forum Index
- Index ranks 105 cities in four different population size categories
- No city -- large or small -- is fully prepared for the challenges ahead
- Globally 45 percent of respondents think their jobs are at risk
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No city is ready for the disruptions of Artificial Intelligence, according to a global study conducted by the
The index ranks cities on four key criteria: the quality of a city’s plan (Vision); a city’s ability to execute on forward-looking plans (Activation); the extent and quality of talent, education, and infrastructure (Asset Base); and how the interplay of Activation and Asset Base are impacting its overall momentum (Trajectory).
But no city is close to being fully prepared. None ranks among the top 20 across all four categories, and none appears in the top 10 across even three.
“Most cities plan to use AI to become ‘smart cities’ or the next
Added Kaijia Gu, co-leader of the Oliver Wyman Forum’s City Readiness initiative: “Some cities, like
Besides ranking cities on their overall readiness, the index also ranks based on size, from megacities to smaller ones. While big cities often have vast resources, smaller ones are nimbler and can rise to new challenges more quickly.
“Proactive smaller cities can be just as well positioned for an age of AI because they are more agile,” said Pervane.
Other key findings:
Londontops the list of cities with populations of more than 10 million people; Singaporeleads cities globally with populations between 5 million to 10 million; San Franciscois the most prepared city with a population of between 3 to 5 million; Stockholmis No. 1for cities with populations between 1 million and 3 million.
Megacities such as
London, New York, and Parisare not the only ones with the rare trio of top talent, top employers, and top educational institutions that can help to succeed in an age of AI. Five of the top 15 cities with these strengths have fewer than 5 million people, including San Francisco, Boston, Stockholm, San Jose, and Sydney.
Many of the world’s smallest municipalities scored well because they are the most proactive in anticipating risks and looking for opportunities. Half of the top 10 cities –
San Francisco, Boston, Amsterdam, Stockholm, and Sydney– have fewer than 5 million residents.
European cities have an advantage in terms of their ability to implement plans. Twelve of the top 20 cities with forward-looking plans are European, including
Stockholm, Munich, Dublin, Hamburg, and Zurich.
Asian cities are displaying the greatest momentum in preparing for both the opportunities and the negative ramifications of AI. Fourteen of the top 20 cities making the greatest strides in terms of aligning with what’s required for success in an age of AI are Asian. Eight of these are in
China, including Shenzhen, Beijing, and Guangzhou.
Job Loss Top Concern Globally
To complement the Oliver Wyman Forum Index, the Forum surveyed more than 9,000 people in 21 cities about how they think technological changes will impact their cities. Job loss was their top concern. Globally, 45 percent of respondents said automation could eliminate their jobs over the next decade and 42 percent are not confident in their government’s vision for technological change. More than half of respondents in Asian cities considered their jobs to be most at risk, compared to 44 percent in
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a wholly owned subsidiary of
Source: Oliver Wyman