5 Smart City Trends for 2026

Forum Virium Helsinki had a prominent presence at the Smart City Expo World Congress in Barcelona in November 2025. The exhibition is the leading event in urban innovation globally. Forum Virium Helsinki participated with its own stand and effectively networked with key players in the sector. Alongside general urban development, the event featured dedicated sections for mobility, the built environment, and blue economy aimed at protecting seas and water bodies.

We compiled a list of five smart city trends from the event that will drive smart city development forward in 2026.

1. Regulation of Autonomous Mobility

In 2026, smart cities will no longer wait for the changes brought by self-driving cars; instead, they will proactively take action. David Zipper, a transportation expert from the Massachusetts Institute of Technology, stated that urban transportation planning faces a change potentially as significant as the introduction of automobiles 120 years ago.

Zipper illustrated that, for instance, a few hundred robotaxis alone can create massive congestion and problems, as trips to pick up empty vehicles increase traffic, and cars may block routes through incorrect parking. This is already a problem in San Francisco, for example, where self-driving taxis are operational.

On the other hand, research conducted by the OECD suggests that a functional and comprehensive public transport backbone network, supplemented by robotaxis, can lead to substantial reductions in emissions and mileage.

As autonomous mobility increases, cities must find new ways to manage changing traffic. David Zipper proposed the rapid adoption of five solutions:

• Automated Traffic Enforcement (e.g., automatic fines for blocking a bus stop)
• Street Space Control and Guidance (specifying where cars can pick up passengers, where to drive)
• Market-Rate Parking (pricing street space for companies)
• Implementation of Congestion Charges (especially for vehicles driving empty)
• Increase in Bus Lanes (to promote public transport)

Forum Virium Helsinki is actively involved in developing autonomous mobility solutions in Europe. The CHORUS project develops the management of autonomous vehicle fleets. Helsinki’s mobility innovations were presented at the Barcelona exhibition by, among others, Project Managers Matias Oikari (DISCO project), Noora Reittu (ELABORATOR project), and Aleksis Pillai (Urban Mobile Robotics project).

2. AI as an Aid in Climate Action and Crisis Management

Artificial intelligence has moved from the experimental stage to a critical part of urban operations. Cris Turner, Director of Public Policy and Government Affairs at Google, listed cases where AI has already saved lives: forecasting floods a week in advance in India and assessing the spread of wildfires to support evacuations.

Utilising AI in climate action is a rising trend, for example, in measuring emissions and anticipating the impact of climate initiatives. AI can also enhance public services. For instance, in Zaragoza, Spain, AI accelerates permit processes, and in Chattanooga, USA, it streamlines the onboarding of new city employees. Initially, this involves weak AI, automating human tasks and saving resources, such as optimizing waste collection and pipe leak prevention. Later, strong AI will be capable of performing tasks that humans could no longer manage.

In the international SPACE4Cities project, coordinated by Forum Virium Helsinki, AI is used in the analysis of satellite data and text generation. A Large Language Model (LLM) assists urban planners, allowing officials to query data and receive answers in natural language without being data analysts themselves. The project aims to increase the climate resilience of European cities. The SPACE4Cities project was presented to city representatives in Barcelona by Forum Virium Helsinki’s Communications Specialist, Paula Kultanen.

3. Transparent AI Governance

City leaders understand that the introduction of new technology requires accountability. The goal is not just efficiency but also fairness and transparency.

Jane Castor, Mayor of Tampa, Florida, shared how the Tampa Police Department has begun replacing helicopters with drones, and AI is used for tasks like reading license plates and predictive crime analysis. Castor emphasized that these systems must be transparent to residents.

Steven Reed, Mayor of Montgomery, Alabama, in turn stressed that AI skills must be taught to residents, and fast internet access must be guaranteed in all areas to equalize opportunities and benefits—the use of AI must be inclusive. AI can also be used to tell stories and, for example, visualize to taxpayers how tax funds are being used.

User involvement in innovation development and transparency in technology use are also essential in Helsinki. Forum Virium’s Project Manager Silja Peltonen presented the results of the CommuniCity project in Barcelona. The project piloted solutions for the needs of marginalized resident groups in collaboration with them.

Programme Director Kerkko Vanhanen also highlighted Forum Virium’s inclusive operating models and CommuniCity’s experimentation methods during his presentation on the European Commission stage.

4. Blending of Digital and Physical Space

Futurist Nikki Greenberg pointed out that we are moving into a new wave of innovation with the advent of AI. For the current Generation Alpha (under 15 years old), smartphones and AI are as self-evident as electricity.

The trend is that the immersive experience provided by AI and data blurs the lines between reality and digital reality. This is known by the terms metaverse and cityverse. In cities, the Internet of Things combined with AI and digital twins enables predictive maintenance of infrastructure, allowing cities to save costs. Even humanoid robots are seen working alongside humans in the future. Young people are already willing to spend time and money in virtual worlds, which is driving this fusion of the physical and digital worlds.

Heli Ponto, Project Manager at Forum Virium Helsinki, presented a demo tool for the digital twin, developed in the Regions4Climate project, at the Cityverse, Metaverse & Digital Twins event in Barcelona. The tool can be used to delve into climate risks and various adaptation measures.

5. Growth in GovTech Investments

Global investments in the digitalization of public services (GovTech) are projected to rise to $500 billion annually worldwide. However, in technology procurement, it is crucial for public administration to know exactly which problems the technology aims to solve.

According to Emilia Saiz, the Secretary General of the World Council on City Data, GovTech must be inclusive, but it is also important for developing internal governance. Cities are currently using digital tools to build resilience and other vital services, among other things. For example, Cape Town successfully used digital tools in its “Day Zero strategy” campaign to combat water scarcity caused by drought. This demonstrates that technology is a critical factor in the survival of cities.

Helsinki utilizes new technology and innovations in developing city services. Forum Virium Helsinki’s Project Manager Meri Vainio presented the model developed with the city in the DOT project, which promotes digital skills and employment readiness for the long-term unemployed, during the “Ideas to Implementation: Practical Steps for More Livable Cities” panel discussion in Barcelona. The digital learning environment created in the project is permanently in use by the City of Helsinki.

Images: Gabriel Bendahan