While most cities in Africa currently deploy only a limited number of AI systems, African urban centres can partner with local innovation ecosystems to deploy targeted, incremental AI services that address residents' most immediate daily needs.

By adopting a focused specialist approach, cities do not need world-class infrastructure to make progress, says management consulting firm Boston Consulting Group (BCG) in its inaugural 'Intelligent Cities Index 2026: How AI Shapes Urban Living' report.

Even the most pioneering of the 61 cities in 39 countries assessed as part of the study excel in different areas and none of them leads across every domain, which underscores that no city has mastered every relevant dimension, the report says.

Expanding intelligent AI-enabled city services can strengthen quality of life and overall intelligent city maturity regardless of a city’s starting point, which highlights that multiple pathways exist to becoming a smarter city, aligned with each city’s current maturity across domains.

Intelligent city leadership is defined by different combinations of strengths rather than a single model. Leading intelligent cities also have room to mature across specific dimensions, as residents’ expectations increase with fast-evolving technology, including AI, says BCG.

Rather than attempting to replicate traditional smart-city development models, African cities can accelerate progress through targeted public-private partnerships and by deploying AI-enabled services through digital channels that residents already use.

This approach can help strengthen institutional capabilities while creating a foundation for longer-term intelligent city development, the company says.

To move from the developing maturity tier to higher-maturity tiers, the report emphasises that African city leaders must address critical soft enabler bottlenecks; specifically venture capital access, technology talent retention and institutional AI governance.

Cairo, in Egypt; Casablanca, in Morocco; Johannesburg, in South Africa; and Lagos, in Nigeria, while at the bottom of the report's rankings and placed in the developing maturity tier owing to deficits in digital infrastructure and startup funding, have citizens who are among the most active and optimistic AI adopters globally.

Boosted by young demographics, as more than 50% of the population in Cairo, Casablanca, and Lagos is under the age of 35, these cities are in the “AI Enthusiasts” cohort.

Casablanca achieved a top ranking in AI adoption and smart city app usage, outpacing several established international metropolises, BCG says.

Residents who use AI most often are also the most optimistic about the technology’s potential to improve opportunity, productivity and quality of life. Positive experiences with AI increase resident confidence, giving city leaders a further opening to enable AI more fully and provide more value to beneficiaries through new and improved intelligent city services.

Cities in Africa, Asia and the Middle East are particularly prominent in this pattern, showing the strongest GenAI momentum, pairing high usage with high optimism about its future impact, the report states.

Demographics are an important factor in helping to shape the next phase of adoption, as cities cater to current and future generations, it says.

The report identifies several trends, including that AI deployment leads to better resident outcomes. Cities that are embedding AI into core intelligent services are delivering faster, stronger results.

Further, smart city app use and satisfaction rise together, which creates a virtuous cycle, with younger cities leading disproportionately in both usage and satisfaction.

However, the report shows that technology alone is insufficient. The most mature cities in the index combine both hard enablers, such as data, tech, and infrastructure, with soft enablers, like talent and funding.

Additionally, smart city funding and startup ecosystems drive economic activity, and cities need to focus on entrepreneurship and innovation to fulfil resident expectations.

Regardless of maturity, important steps to drive stronger outcomes include establishing clear long-term strategic priorities, strengthening governance and public-private partnerships, and scaling proven AI-enabled services.

Another important step is to invest in the data and technology platforms, infrastructure, talent and innovation ecosystems needed to sustain intelligent city progress and transformation.

“Given today’s rapid pace of change and evolving resident expectations, building a city’s intelligent foundation, paired with focused improvement across enablers requires urgency. However, city leaders and business partners don’t need to try to do everything all at once. It’s a longer-term horizon and there is no single pathway forward.

“Intelligent city momentum comes from making intentional, and sometimes incremental, choices now and building for a smarter tomorrow with a clear, comprehensive roadmap,” says BCG partner and director and report co-author Rami Mourtada.