Page 17 - A U4SSC deliverable - Accelerating city transformation using frontier technologies

Optimising urban operations using AI

By leveraging the power of AI, cities can operate more efficiently and effectively. AI software can identify
useful patterns and detect anomalies by analysing a vast amount of data to inform better decision
making, hence bringing significant benefits to city governments and citizens alike. The use of AI across
various domains has had a considerable impact on several urban operations, including transportation,
waste management and health care.

The transportation sector is one of the earliest adopters of AI technology. The global AI market for
transportation was valued at USD 1.4 billion in 2017. The number is projected to reach USD 3.5
billion by 2023. In Tokyo, an AI-powered taxi service was implemented in 2018 to help reduce traffic
19
congestion and improve the mobility of the city in preparation for the upcoming Olympics (now
rescheduled for 2021).

The city has partnered with its local car makers, telecommunication operators and international
consulting firms to develop a taxi dispatch support system that utilises location-based Big data gathered
from smartphones to predict taxi demands and influxes. This AI application can predict the demand
for taxies based on data on the number of occupied taxis within an area, taxi service logs and the
demographic. The ability to predict taxi demand is particularly useful during special events (such as the
Olympics) for which there will be an influx of tourists arriving in the city. The system has an impressive
94 per cent accuracy rate and has significantly improved the mobility of the areas that it covers.
20
Additional pilot projects using AI to improve the efficiency and safety of public transport are being
conceived and implemented. One of these pilot projects is the autonomous taxis that are being
deployed in Tokyo ahead of the Olympics. It is noted that, for safety reasons, there is still a driver in
these autonomous taxis who can take control during emergency situations. The manufacturer of these
autonomous taxis highlights the fact that these vehicles will reduce the cost of taxi services and make
them more widely available, particularly in remote regions. Germany, the United States and China have
21
carried out similar pilots. For example, autonomous trucks in the US could reduce the cost of logistics
operations by 45 per cent. By leveraging data and analytics powered by AI software to forecast demand
and optimise delivery routes, shippers and carriers can also reduce inventory space by 75 per cent,
thereby cutting costs by 15 to 30 per cent and reducing administrative costs by 80 per cent. Despite
22
widespread interest, autonomous vehicles are still facing multiple challenges, ranging from concerns
over safety and the replacement of businesses built on accidents (e.g. insurance), to the fear that the
regulations governing them will be unclear.
23 24

“AI software can identify useful patterns and detect anomalies through
analysing a vast amount of data to inform better decision-making,
bringing significant benefits to both city governments and citizens alike”

Waste management is another aspect of urban operations that could benefit from AI. Currently, about
2.01 billion metric tons of municipal solid waste is generated annually worldwide. The number is
expected to increase to 3.4 billion metric tons by 2050. It has been estimated that between one-third

Accelerating city transformation using frontier technologies | A U4SSC deliverable 7