Artificial Intelligence for urban governance: decision support, citizen engagement, and co-creation

Artificial intelligence (AI) is increasingly seen as a key enabler of innovation in many contexts, urban governance among those. Yet, its implementation within public administrations, especially in medium-sized cities, remains limited, fragmented, and often experimental. Despite its potential to improve decision-making and service delivery, the integration of AI is hindered by infrastructural gaps, organizational complexity, and uneven institutional readiness. This research addresses this challenge by exploring how AI is understood and applied in the context of local government, focusing on the mid-sized Italian city of Pescara. Based on 21 semi-structured interviews with municipal officials, the study adopts a qualitative research approach. The research contributes to the smart city debate by highlighting three strategic domains in which AI is beginning to take shape by highlighting (i) the role of AI as a decision support tool for urban management, (ii) the use of AI to enhancing citizen engagement through AI-based chatbots, and (iii) the effective AI implementation through co-creation with local enterprises. These insights offer practical implications for public managers and policymakers, emphasizing the need for interoperable data infrastructures, inclusive digital service design, and structured public–private partnerships. By adopting a governance-oriented lens, the research advances a more context-sensitive and actionable understanding of AI integration in smart city development.