ABSTRACT

This chapter discusses the creation of artificial intelligence (AI) systems to support the management of strategic risk in smart cities. The use of AI in smart cities is growing and the applications to several sectors are booming: from analyzing data from sensors in bridges for the maintenance process to health care at home or security and safety of the citizenry. The presents examples of various events affecting a city’s performance and show how, with AI use, it is possible to provide a better understanding of the impact of decisions in managing strategic risk. The organization of the performance measurement and strategic objectives set is based on an adaptation of the balanced scorecard (BSC) to municipal administrations. The measurement process is crucial for managing the city and keeping stakeholders satisfied. Measurement generates metrics and indicators. These are potentially affected by uncertainty, and the variation of the expected results is what strategic risk management is looking to assess and control.