ISCN Global Mixer: EU AI Act - What's in it for my city?

The EU AI Act will have significant impacts on cities and their administrations. This episode of the ISCN Global Mixer offers the opportunity to gain deeper insights into potential effects and explore further implications.

Gert Hilgers and Ivy Yang from Open and Agile Smart Cities and Communities (OASC) discuss the question of what implications the EU AI Act has especially for cities and communities.

In their presentation, they emphasized that the AI Act is a comprehensive regulatory approach that is part of a broader ecosystem affecting many areas of urban digitalization. For this reason, it is also important for municipalities whose digital transformation is currently still at an early stage. 

The role of cities and communities 

It is important for cities to know in which role they (will) use AI. They can be providers, which is also the case when procuring customized solutions. Cities can also be deployers, i.e. users of AI models. Another important role is to safeguard the municipality from the negative effects of AI, but also to make use of the positive use cases for the community. 

Key focus areas for municipalities 

Although, with a few exceptions, the AI Act does not distinguish between the public and private sectors, there are a number of key areas that cities can focus on. 

First, there is the question of risk assessment. Cities need to be able to assess the risks of the AI systems they deploy. The AI Act distinguishes between four risk categories for the classification of AI systems, from unacceptable risk (directly prohibited), high risk, limited risk and no risk. Many use cases affecting cities fall into the high-risk category. Use cases in this category include: biometrics, management and operation of critical infrastructure, law enforcement, employment, access to essential public services and benefits, administration of democratic processes. When AI systems are used in these areas, cities need to put in place a quality management system, among other things. 

The second key area that cities should focus on is the holistic approach to regulation. All stakeholders in the AI value chain must comply with the AI Act. Additionally, the entire lifecycle (pre- and post-market) has to be monitored, especially for high-risk systems.

The governance and enforcement structure of the AI Act is the third key area that Ivy recommended communities to focus on. National competent authorities will be serving as single points of contacts. In addition, a notifying authority and a market surveillance authority will be established for each member state. 

AI Act can support the digital transformation of cities and communities

Although the majority of cities are not currently using AI directly, the AI Act will have an impact on urban digitalization. Reasons often cited by cities as to why they are refraining from using AI include data protection concerns, legal uncertainties and ethical concerns. The AI Act addresses these very issues. While there is still some ambiguity at present, there will be more clarity as the regulation comes into force and is implemented. Cities and municipalities are currently facing major challenges, and in order to overcome these, current opportunities for improved planning and efficiency in various areas should be utilized as much as possible. This is where the AI Act comes in, and has the potential to support cities on their digital transformation journey.