AI in Smart Economy

The chapter explores the integration of Artificial Intelligence (AI) within the Smart City and what major challenges it holds, specially for workforce displacement and enhancement of skills. While Smart City economies are transformed by new technologies in AI, although bringing considerable economic benefits and at the same time having their impact on traditional work, they may displace both relatively low-skilled and skilled work. The chapter insists on the need for comprehensive strategies that balance technological progress with workforce sustainability, including reskilling and upskilling programs. The collaboration between governments, businesses, and educational institutions in ensuring that workers are adequately prepared with both technical and soft skills to thrive in an AI-driven economy is stressed. The chapter also discusses the need for inclusive policies that offer social safety nets and ensure that the benefits of AI are equitably distributed, with a view to a future in which AI enhances, rather than displaces, human potential .