Cognitive Sovereignty and Happiness Governance

This chapter examines AI systems that infer cognitive and emotional states and their implications for mental privacy, cognitive liberty, and well-being in smart-city governance. Using a structured narrative synthesis of peer-reviewed and official sources (2018-2025), it contrasts Dubai's practice, where happiness metrics are built into service delivery, with international frameworks (EU AI Act, UNESCO, OECD). We use the Cognitive and Emotional Well-Being Index (CEWI) as an analytical lens. Findings map benefits and risks of cognitive/emotional AI and set out governance tools: cognitive consent, explainability, proportionate oversight, and participatory review. Dubai is presented as a distinctive case of happiness-oriented, autonomy-preserving service design. Policy proposals include a Neuroethics and Happiness Task Force, explicit consent for cognitive/emotional inference, and a neurorights-aligned framework. The chapter contributes a comparative assessment of Dubai in global context and a transferable model for human-centered, cognitive-sovereignty governance of urban AI.