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Gene a i e AI and he U ban AI Policy Challenges Ahead:
T us wo hy o Whom?
Abs ac (250):
This Special Issue o TGPPP add esses he accele a ing con e gence be ween GenAI, U ban
AI, and public go e nance. As algo i hmic sys ems a e deployed ac oss domains such as
anspo , wel a e, housing, educa ion, and secu i y, ci ies become bo h labo a o ies o
inno a ion and ba leg ounds o democ a ic legi imacy. T us wo hy AI has eme ged as a
policy impe a i e—bu he ques ion emains: us wo hy o whom? Ra he han ea ing us
as a s a ic ea u e o echnical sys ems, his Special Issue e ames i as a ela ional, con es ed,
and ins i u ionally media ed concep — undamen al o he legi imacy o public ac ion in he
digi al age. Con ibu ions a e encou aged ha explo e GenAI no only as a echnological
ad ance, bu as a go e nance challenge ha econ igu es disc e ion, au ho i y, and he social
con ac be ween ci izens and ins i u ions. Inspi ed by Richa d R. Nelson’s endu ing me apho
o “The Moon and he Ghe o”—which cap u es he asymme ies be ween echnological
sophis ica ion and social equi y— his Special Issue in i es a enewed in e oga ion o how AI
policy can b idge sys emic inequali ies a he han en ench hem. U ban go e nance
amewo ks mus mo e beyond echno-solu ionism o embed plu alism, accoun abili y, and
public alue a he co e o GenAI deploymen s. Schola s, policymake s, and p ac i ione s a e
in i ed o submi empi ical, heo e ical, and policy-o ien ed con ibu ions ha c i ically
examine how U ban AI can be go e ned wi h legi imacy, e lexi i y, and jus ice.
Keywo ds (10):
Gen AI, U ban AI, T us wo hy AI, Sma Ci ies, Inno a ion Sys ems and Ins i u ions,
Algo i hmic Go e nance, Digi al Inclusion, Applied Economics, Public Policy, Epis emic
Au ho i y
Wo dcoun : 7779
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Calzada I (2025;), "Gene a i e AI and he u ban AI policy challenges ahead: T us wo hy o whom?".
T ans o ming Go e nmen : People, P ocess and Policy. h ps://doi.o g/10.1108/TG-08-2025-0240 © 2025
Eme ald Publishing Limi ed. This au ho accep ed manusc ip is deposi ed unde a C ea i e Commons
A ibu ion Non-comme cial 4.0 In e na ional (CC BY-NC) licence.
T ans o ming Go e nmen : People, P ocess and Policy
2
In oduc ion o he Special Issue:
Gene a i e AI and he U ban AI Policy Challenges Ahead: T us wo hy AI o Whom?
Richa d R. Nelson’s endu ing me apho o The Moon and he Ghe o (1977, 2011) cap u es a
pa adox ha con inues o de ine con empo a y policy dilemmas: while ad anced socie ies ha e
demons a ed he scien i ic and echnical capaci y o achie e ex ao dina y ea s—such as
landing on he moon— hey s ill s uggle o add ess pe sis en social injus ices wi hin hei own
ci ies. This pa adox esona es powe ully in he cu en momen o gene a i e and u ban
a i icial in elligence (AI). As la ge-scale models and p edic i e algo i hms inc easingly shape
public se ices, ins i u ional decision-making, and u ban go e nance, he same disjunc ion
be ween echnological capabili y and socio-poli ical neglec becomes e e mo e acu e. The
p omise o GenAI and U ban AI lies in op imiza ion, pe sonaliza ion, and enhanced
adminis a i e e iciency; ye hese capabili ies isk being deployed wi hou con on ing deepe
s uc u al inequali ies. The Special Issue add esses his co e ension by asking: wha does i
mean o pu sue “ us wo hy AI” in a wo ld s ill ma ked by deep ci ic dis us , opaque
in as uc u es, and asymme ical access o digi al igh s? U ban con ex s—whe e mos AI
expe imen a ion akes place—p o ide a c i ical e ain o explo ing his ques ion. Ra he han
eplica ing moonsho ambi ions, con ibu o s a e encou aged o in e oga e he ins i u ional,
economic, and democ a ic condi ions unde which AI echnologies a e implemen ed, esis ed,
o eimagined. T us , in his amewo k, becomes no a echnical gua an ee bu a poli ical
achie emen —con ingen on legi imacy, inclusion, and social jus ice.
A i icial In elligence (AI) is no longe a u u is ic aspi a ion o a ma ginal expe imen —i has
become a cons i u i e o ce in he go e nance o con empo a y socie ies. This ans o ma ion
is pa icula ly p onounced in u ban con ex s, whe e he con e gence o digi al in as uc u es,
algo i hmic decision-making, and ci ic li e has u ned ci ies in o bo h labo a o ies o
inno a ion and ba leg ounds o go e nance (Au ho and Cobo, 2015; Vis izi and Ly as, 2019;
Yigi canla e al., 2025). Today, wi h he explosi e ise o Gene a i e AI (GenAI), we a e
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en e ing a new phase o his e olu ion: one in which syn he ic knowledge, p obabilis ic
easoning, and au oma ed in e ac ion a e inc easingly embedded in o he e y mechanisms by
which public ins i u ions unc ion.
Ye he a i al o GenAI also aises undamen al ques ions abou us , legi imacy, and
democ a ic con ol. As his Special Issue p o oca i ely asks: T us wo hy AI— o whom?
(Au ho e al., 2025). Who de ines he pa ame e s o us wo hiness? Whose oices shape he
go e nance o AI sys ems? And wha ins i u ional a chi ec u es a e in place—o missing— o
ensu e ha AI aligns wi h public alues a he han ma ke impe a i es o echnoc a ic
abs ac ion?
In he con ex o public go e nance, and especially wi hin u ban and egional domains, he
concep o “ us wo hy AI” is a om neu al. I ca ies deep no ma i e weigh , en angled
wi h he challenges o ins i u ional legi imacy, pa icipa o y inclusi eness, and echnological
opaci y (Gangadha an, 2020). Ra he han aming us as a s a ic a ibu e o sys ems, his
Special Issue app oaches i as a con es ed, nego ia ed, and ela ional dynamic—an ou come o
socio- echnical a angemen s and poli ical choices.
This in oduc ion hus se es as bo h a concep ual oadmap and a call o ac ion. We in i e
schola s, policymake s, echnologis s, and ci ic ac o s o examine he social, poli ical, and
ins i u ional econ igu a ions ushe ed in by GenAI and U ban AI. We a e pa icula ly in e es ed
in con ibu ions ha in e oga e how hese echnologies a ec he abili y o public ins i u ions
o go e n in ways ha a e jus , accoun able, and inclusi e (Au ho and Eizagui e, 2025a–d).
To do so, we mus mo e beyond he amilia p omises o e iciency and op imisa ion. We mus
c i ically assess how AI sys ems a e embedded in bu eauc a ic ou ines, media ed by da a
in as uc u es, and shaped by he powe dynamics o hei design and deploymen (Ba low,
1996; Bigo e al., 2019; Buolamwini, 2024). GenAI does no me ely au oma e asks—i co-
p oduces decisions, s uc u es public meaning, and econ igu es he con ou s o he social
con ac . T us , in his con ex , mus be ede ined no as me e accep ance o AI ou pu s bu as
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a ela ional and con es ed dynamic be ween ci izens, ins i u ions, and he opaque sys ems
media ing hem (Eubanks, 2018; an Dijck e al., 2025). The deploymen o GenAI in ci ies
isks ein o cing exis ing hie a chies o knowledge and con ol i i is no accompanied by
ins i u ional mechanisms o accoun abili y, in e p e abili y, and ci ic delibe a ion (Ulnicane
e al., 2022; Gangadha an, 2017).
This Special Issue is he e o e an in i a ion o e hink wha us wo hy AI migh mean when
placed in he hands o public ins i u ions. No simply whe he AI is explainable o ai , bu
whe he i is go e ned democ a ically, oo ed in public o e sigh , and e lec i e o di e se ci ic
imagina ies. We seek con ibu ions ha cen e legi imacy, accessibili y, and plu alism as
ounda ional p inciples in he go e nance o GenAI in u ban li e. As such, we u ge con ibu o s
o c i ically engage wi h he ways GenAI sys ems can ecalib a e he social con ac be ween
he go e ned and go e ning—no only h ough echnical design bu h ough go e nance
amewo ks ha cen e legi imacy, accessibili y, and plu alism in ci ies (Au ho and Almi all,
2020).
Beyond Technoc a ic P omises: Reclaiming Public Go e nance
The common na a i e— esona ing wi h i s cousin hype e m, sma ci ies—a ound U banAI
in public adminis a ion is in used wi h p omises: inc eased e iciency, esponsi eness,
pe sonaliza ion, and op imiza ion (Au ho and Cowie, 2017; Ca dullo e al., 2019). Ye , hese
bene i s a e une enly dis ibu ed, o en masking o e en ep oducing s uc u al inequali ies
(Au ho and Eizagui e, 2025b). A mo e c i ical app oach asks no me ely how AI wo ks, bu
o whom i wo ks, unde wha condi ions, and wi h wha consequences. Ra he han e ining
e hics checklis s o pu suing echnical obus ness in isola ion, his Special Issue calls o a
deepe engagemen wi h he democ a ic, ci ic, and ins i u ional dimensions o GenAI and
U banAI go e nance (Au ho , 2025a).
This momen in i es a e hinking o digi al ans o ma ion no as a pu ely echnological
endea o , bu as a poli ical and ins i u ional p ojec ha mus cen e public so e eign y,
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democ a ic accoun abili y, and collec i e agency (Eu opean Commission, 2025c). Recen and
pas policy amewo ks—such as he Eu opean Commission’s AI Con inen : Ac ion Plan
(2025b) and he Eu opean Economic and Social Commi ee’s P oposal o a So e eign and
Democ a ic Digi alisa ion (EESC, 2019)—signal an awa eness o hese impe a i es. They call
o go e nance models ha sa egua d no only inno a ion and compe i i eness bu also
undamen al igh s, in e ope abili y, and ci ic pa icipa ion. Howe e , wi hou a g ounded
implemen a ion s a egy ha eclaims public go e nance as he co e in as uc u e o AI
deploymen , hese amewo ks isk becoming aspi a ional a he han ope a ional (Au ho and
Almi all, 2019a, 2019b). As GenAI sys ems a e embedded in o he e e yday decision-making
a chi ec u es o ci ies and ins i u ions, we mus c i ically examine who s ee s hese ansi ions,
whose alues a e encoded, and wha accoun abili y mechanisms a e in place o p e en
cap u e—ei he by ma ke s o by opaque echnoc acies (Au ho , 2018).
In his ligh , AI in go e nance mus be e-si ua ed no only as a echnological o policy p oblem
bu as a poli ical and social one. This means in e oga ing he ways in which powe , oice, and
ep esen a ion a e embedded—o excluded— om AI sys ems deployed by public ins i u ions.
T us wo hiness should be seen no as a s a ic ea u e o a sys em bu as a dynamic, nego ia ed
ou come o ins i u ional a angemen s, poli ical cul u es, and ci ic in e ac ions ha could esul
in social inno a ions (Au ho , 2024).
Ci ies as Labo a o ies and Ba leg ounds
The u ban con ex ampli ies hese challenges and oppo uni ies (Galce an-Ve che and Vidal
D’oleo, 2024). As AI ools a e inc easingly in eg a ed in o anspo sys ems, was e
managemen , p edic i e policing, educa ion, and heal hca e planning, ci ies become
labo a o ies o digi al expe imen a ion—bu also ba leg ounds o echnological go e nance.
The deploymen o GenAI in hese domains has he po en ial o ans o m how municipal
decisions a e made, how public se ices a e deli e ed, and how ci izens ela e o hei
ins i u ions (Vis izi and Ly as, 2018).
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Alongside p e ious ac ion esea ch on 13 sma global ci ies conduc ed h ough he Ci ies
Coali ion o Digi al Righ s (Au ho e al., 2021) including Long Beach, To on o, Po o,
Ams e dam, London, Vienna, Milano, Los Angeles, Po land, San An onio, New Yo k,
Ba celona and Glasgow; he Ba celona Cen e o In e na ional A ai s (CIDOB) has ecen ly
examined six global ci ies—Ba celona, Ams e dam, New Yo k, San José, Dubai, and
Singapo e—in i s epo IA u bana é ica en la p ác ica (Galce an-Ve che and Vidal D’oleo,
2024). These cases shed ligh on he di e se go e nance models shaping how AI is deployed
in u ban se ings and he a ied in e p e a ions o wha cons i u es " us wo hy" AI.
The six case s udies illus a e he di e se and con es ed ajec o ies o U ban AI deploymen s
in global ci ies. These implemen a ions o e insigh s in o ins i u ional legi imacy,
echnological opaci y, go e nance models, and ci ic us , as well as he une en social
consequences o da a ica ion and AI-enhanced sys ems—especially as GenAI deepens hese
dynamics (Vis izi e al., 2025).
Ba celona: F om Digi al Righ s o Public Algo i hmic In as uc u e
Ba celona exempli ies a no ma i e coun e -model oo ed in echnopoli ical so e eign y. Wi h
ini ia i es like DECIDIM, he ci y p omo es public algo i hmic accoun abili y and ci izen co-
go e nance. The deploymen o AI is g ounded in anspa ency, pa icipa o y e hics, and
public-sec o da a in as uc u es, aiming o con es he pla o miza ion o u ban li e.
T us wo hiness o Whom? Fo ci izens as poli ical ac o s, no me ely use s—especially
h ough decen alized delibe a ion amewo ks and open-sou ce ci ic ech. GenAI Risk: E en
wi h e hical in as uc u es, GenAI could ecen alize powe i co-op ed by echnoc a ic
go e nance. Key Tension: Main aining ins i u ional anspa ency and ci ic agency while
scaling AI complexi y.
Ams e dam: Nego ia ing Pla o m Go e nance and Public Values
Ams e dam ancho s i s AI go e nance on public alue o ien a ion and egula o y
expe imen a ion, including he Tada Mani es o and he Algo i hm Regis e . The ci y
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collabo a es wi h academic and ci il socie y pa ne s o ensu e algo i hmic anspa ency and
audi abili y. T us wo hiness o Whom?
Aims a inclusi e u ban ci izenship, using da a commons amewo ks o balance p i a e-sec o
in luence. GenAI Risk: Vulne able o egula o y cap u e by dominan ech i ms despi e s ong
ci ic coali ions. Key Tension: T ansla ing p inciples in o ope a ionalized accoun abili y
mechanisms amid ising au oma ion.
New Yo k: Ins i u ionalizing AI E hics in a Hype -Da a ied Ci y
New Yo k posi ions i sel as a global benchma k in egula o y o esigh , launching ools like
he Au oma ed Decision Sys ems Task Fo ce and he NYC AI Ac ion Plan. The ocus is on
ins i u ional anspa ency, especially ega ding he social se ices impac ed by AI (e.g.,
p edic i e policing, housing alloca ion). T us wo hiness o Whom?
A emp s o sa egua d ulne able popula ions om disc imina o y AI ou comes, especially in
public se ices. GenAI Risk: The complexi y o socio- echnical sys ems could obscu e public
accoun abili y, despi e o mal mechanisms. Key Tension: Ensu ing equi y and in e p e abili y
wi hou educing e hics o checkbox compliance.
San José: Public-P i a e Technological Co-Go e nance in Silicon Valley
San José, he capi al o Silicon Valley, illus a es a echnoc a ic go e nance model whe e AI
expe imen a ion is embedded in sma ci y in as uc u e, o en co-de eloped wi h ech gian s.
While inno a ion is apid, ci ic delibe a ion mechanisms a e limi ed. T us wo hiness o
Whom? T us is implici ly es ed in echnical compe ence and co po a e inno a ion a he han
democ a ic sc u iny. GenAI Risk: High po en ial o asymme ic knowledge powe , whe e
public ins i u ions become dependen on p i a e pla o ms. Key Tension: Lack o ci ic
in as uc u e o con es o nego ia e AI ou comes, leading o po en ial aliena ion.
Dubái: Hype mode nism and Au ho i a ian Technogo e nance
Dubái ep esen s a hype mode n AI deploymen s a egy, wi h he s a e as a cen al o ches a o
o a isiona y sma ci y na a i e. T us is no delibe a i e bu de i ed om s a e au ho i y and
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echnological spec acle, exempli ied by he Dubai AI Lab and he Sma Dubai O ice.
T us wo hiness o Whom? Fo he s a e as bene olen gua dian o p og ess; ci izens a e
concep ualized as bene icia ies, no agen s. GenAI Risk: Consolida es opaque go e nance, wi h
li le o no ins i u ional o ci ic o e sigh . Key Tension: Absence o pa icipa o y amewo ks
aises conce ns o algo i hmic au ho i a ianism.
Singapo e: Bu eauc a ic Techno-Solu ionism wi h S a egic Fo esigh
Singapo e in eg a es AI h ough s a egic echno-go e nance, emphasizing e iciency, sa e y,
and planning p ecision. I combines s a e con ol wi h p edic i e analy ics ac oss heal hca e,
mobili y, and educa ion, unde s ong bu eauc a ic discipline. T us wo hiness o Whom?
T us is ins i u ional, buil on a pa e nalis ic social con ac and belie in da a-d i en
compe ence. GenAI Risk: Risks ein o cing exis ing powe asymme ies wi hou oom o
dissen o plu alism. Key Tension: Na iga ing be ween hype - a ionali y and democ a ic
pa icipa ion in algo i hmic go e nance.
U ban AI Go e nance as a Recon igu a ion o he U ban Social Con ac
These six ci ies embody dis inc i e con igu a ions o us , ins i u ional legi imacy, and ci ic
inclusion in he age o U ban AI. Ye , he ise o GenAI in ensi ies all p e ious ensions:
opaci y, cen aliza ion, and ep esen a ional inequali y. As such, his compa a i e analysis
ein o ces he edi o ial claim: T us wo hy AI is no a echnical p ope y—i is a poli ical
achie emen .
Ba celona s ands ou o embedding algo i hmic anspa ency and ci izen pa icipa ion a he
hea o i s go e nance model. Th ough open-sou ce pla o ms such as Decidim and ini ia i es
led by he Municipal Da a O ice, he ci y seeks o eclaim public con ol o e digi al
in as uc u es, p esen ing a bo om-up al e na i e o p i a e-led sma ci y models. T us , he e,
is ela ional and poli ical—cul i a ed h ough delibe a ion and ins i u ional openness.
Ams e dam o e s a simila ly alues-d i en app oach, pionee ing ools like he Algo i hm
Regis e and co-p oducing he Tada Mani es o wi h ci il socie y ac o s. These ins umen s aim
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o codi y anspa ency, equi y, and inclusi eness in o he ab ic o u ban AI policy, al hough
ope a ionalising hese alues emains a wo k in p og ess.
In con as , New Yo k has pu sued a mo e egula o y and audi -d i en model. Wi h ini ia i es
such as he Au oma ed Decision Sys ems Task Fo ce and he AI Ac ion Plan, he ci y a emp s
o na iga e he opaci y o algo i hmic sys ems, pa icula ly in domains like housing, policing,
and social se ices. Ye he ins i u ional bu den o achie ing accoun abili y o en es s on
compliance mechanisms a he han ci ic co-go e nance. San José, si ua ed in he epicen e o
Silicon Valley, embodies he ensions be ween echnological inno a ion and public
accoun abili y. While he ci y has pa ne ed wi h ech i ms o accele a e AI adop ion in public
adminis a ion, go e nance s uc u es o en lag behind, aising conce ns abou asymme ies in
expe ise, powe , and o e sigh .
Dubai and Singapo e ep esen wo s a e-cen ic app oaches o U ban AI, albei wi h di e en
poli ical ex u es. In Dubai, AI is deployed as pa o a hype mode n na ional b anding s a egy,
whe e he Sma Dubai agenda posi ions echnology as a symbol o p og ess and e iciency.
Howe e , his model ope a es wi h limi ed ci ic sc u iny and assumes us as a unc ion o
au ho i y a he han delibe a ion. Singapo e simila ly in eg a es AI in o i s bu eauc a ic and
echnoc a ic planning amewo ks, emphasising o esigh , op imisa ion, and sys em-wide
e iciency. T us , in his con ex , is embedded in ins i u ional legacy and s a e compe ence—
bu ends o exclude bo om-up accoun abili y mechanisms.
Taken oge he , hese six cases illus a e ha he go e nance o AI in ci ies is no me ely a
ques ion o echnological capaci y o e hical in en ion, bu one o ins i u ional design, poli ical
cul u e, and ci ic imagina ion. As Gene a i e AI becomes mo e embedded in u ban decision-
making, hese exis ing go e nance models will be u he es ed. The ques ion “ us wo hy
AI— o whom?” hus becomes no only a no ma i e challenge bu a p ac ical one: how o
ensu e ha algo i hmic sys ems a e no only echnically sound bu socially legi ima e, publicly
accoun able, and democ a ically co-p oduced.
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long emphasized by schola s such as Mazzuca o (2013), Nelson and Win e (2006), and
Polanyi (1944)—mus be easse ed in AI go e nance, pa icula ly a he municipal le el.
In he con empo a y policy discou se, ci ies a e inc easingly po ayed as agile ac o s capable
o deploying expe imen al echnologies a scale. Ye wi hou obus ins i u ional a chi ec u es,
hese deploymen s isk eplica ing ex ac i e models o su eillance capi alism and digi al
eudalism (Zubo , 2019; Mo ozo , 2022). The challenge lies in c ea ing go e nance sys ems
ha a e no only adap i e and inno a i e bu also inclusi e, anspa en , and democ a ically
accoun able.
D awing om B ezni z (2007), his Special Issue no es ha ins i u ional di e si y and poli ical
agency a e c i ical de e minan s o success in inno a ion policy. His compa a i e analysis o
Is ael, Taiwan, and I eland unde sco es how na ional and egional ins i u ions—when aligned
wi h long- e m s a egic isions—can os e dis inc i e inno a ion ou comes. Simila ly, ci ies
mus de elop place-speci ic ins i u ional esponses o U ban AI, shaped by local needs, alues,
and capabili ies as we examined wi h he cases o Ba celona, Ams e dam, New Yo k, San José,
Dubai, and Singapu (Au ho e al., 2021; Galce an-Ve che and Vidal D’oleo, 2024).
One p omising di ec ion is he eme gence o “public algo i hmic in as uc u es” (Au ho ,
2026a), in which da a go e nance, AI deploymen , and ci ic engagemen a e in eg a ed in o
he co e unc ions o municipal go e nance. These in as uc u es a e no me ely echnical
sys ems bu also ins i u ional amewo ks ha embed accoun abili y, con es abili y, and co-
p oduc ion in o AI design and ope a ion. In his sense, ins i u ional a chi ec u e is bo h a
ma e ial and no ma i e s uc u e—i enables ac ion while shaping he e y e ms o democ a ic
pa icipa ion.
F om En ep eneu ial S a e o En ep eneu ial Ci y
Building on Mazzuca o’s (2013, 2022) no ion o he En ep eneu ial S a e, his Special Issue
a gues ha ci ies mus ac as en ep eneu ial agen s in he go e nance o GenAI. This does no
mean emula ing p i a e-sec o logics o dis up ion o e iciency. Ra he , i en ails mission-
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o ien ed inno a ion s a egies ha align AI deploymen wi h b oade socie al goals—equi y,
sus ainabili y, democ a ic pa icipa ion, and public alue c ea ion.
U ban adminis a ions can—and should—se e as o ches a o s o inno a ion ecosys ems,
con ening public, p i a e, and ci ic ac o s o co-de elop AI solu ions ha espond o sha ed
challenges. This equi es new ins i u ional capaci ies, including o esigh uni s, ci ic labs, da a
s ewa dship o ices, and algo i hmic audi mechanisms. These capaci ies a e al eady eme ging
in pionee ing municipali ies such as Ba celona, Ams e dam, and Helsinki, whe e pa icipa o y
amewo ks, open-sou ce pla o ms, and e hical AI guidelines a e being ope a ionalized
(Jacobs, 1966).
Ye hese de elopmen s emain agile. Wi hou sus ained poli ical commi men and inancial
suppo , hey isk being sidelined by echno-solu ionis na a i es o cap u ed by ma ke
in e es s. The lesson om B ezni z and Zysman (2013) is ins uc i e he e: inno a ion
ecosys ems lou ish when public ins i u ions main ain s a egic au onomy, in es in
ins i u ional capabili ies, and ac i ely shape ma ke s uc u es—no when hey me ely adap o
global ends.
Embedding AI in Ci ic Economies: Re hinking U ban Value C ea ion
The deploymen o GenAI in ci ies aises c i ical ques ions abou economic alue—who c ea es
i , who cap u es i , and how i is dis ibu ed. Mains eam economic models, such as hose
ad anced by Po e (1985), ocus on compe i i eness and e iciency. Bu in he con ex o
U ban AI, alue mus also be measu ed in e ms o ci ic empowe men , democ a ic
accoun abili y, and social cohesion.
He e, Polanyi’s (1944) concep o he embedded economy becomes ele an . AI go e nance
canno be abs ac ed om he social ins i u ions, cul u al no ms, and poli ical s uc u es ha
gi e i meaning and legi imacy. Ci ies mus he e o e design AI sys ems ha a e embedded in
local ci ic economies—no imposed h ough echnoc a ic bluep in s o global pla o ms.
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This embeddedness also demands new o ms o alue accoun ing. Flo ida (2002) a gued,
p obably no an icipa ing such dis up ion, ha c ea i i y and knowledge p oduc ion migh be
cen al o u ban economic g ow h. Bu in he age o GenAI, his c ea i i y is inc easingly
au oma ed, commodi ied, o ou sou ced. How can ci ies eclaim c ea i e labo , ensu e da a
so e eign y, and suppo collec i e in elligence in ways ha esis enclosu e? This is no me ely
a ques ion o policy, bu o ins i u ional imagina ion. And de ini ely no a ma e o c ea i i y
as Flo ida w ongly an icipa ed (Hallons en, 2024).
One pa hway is h ough he de elopmen o da a commons and coope a i e in as uc u es,
such as DAOs and da a us s (Au ho , 2024; Nicole e al., 2025). These models o e
al e na i es o p op ie a y pla o ms by enabling collec i e da a go e nance, sha ed owne ship,
and pa icipa o y con ol o e AI sys ems. They also econnec AI deploymen o b oade
agendas o democ a ic inno a ion and u ban jus ice.
Towa ds Democ a ic AI Economies in Ci ies
The u u e o U ban AI go e nance will be shaped no only by echnological capabili ies o
policy choices bu by he ins i u ional a chi ec u es we build—o ail o build— oday. D awing
om inno a ion sys ems heo y, e olu iona y economics, and poli ical economy, his sec ion
has ou lined a oadmap o e hinking AI economics in ci ies.
This Special Issue has a gued ha ci ies mus ac no as passi e adop e s o GenAI bu as
s a egic s ewa ds o i s de elopmen and deploymen . This equi es in es ing in ins i u ional
capaci ies, os e ing mission-o ien ed inno a ion ecosys ems, and embedding AI wi hin ci ic
economies ha p io i ize public alue o e p i a e p o i .
T us wo hy U ban AI, in his ision, is no jus a ma e o algo i hmic anspa ency o
echnical obus ness. I is a poli ical and ins i u ional achie emen —one ha mus be co-
p oduced by ci izens, public o icials, esea che s, and ci ic echnologis s (Le i, 2024). By
g ounding GenAI go e nance in inclusi e inno a ion sys ems and obus ins i u ional
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a chi ec u es, we can begin o cha a pa h owa d mo e jus , democ a ic, and esilien u ban
u u es.
U ban AI and he Policy Design Challenge: T us , Go e nance, and Applied Economics
a he Edge o he GenAI
Richa d R. Nelson’s endu ing me apho o “ he moon and he ghe o” (1977; 2011) cap u es a
pa adox a he hea o con empo a y echnological de elopmen (Fe ie, 2023): ou socie ies
possess he scien i ic and echnical capaci y o send a spacec a o he moon, ye we s uggle—
o ail en i ely— o add ess he sys emic injus ices ha shape li e in ma ginalized communi ies.
As Nelson eminded us, he p oblem is no one o echnical easibili y bu o poli ical will,
ins i u ional alignmen , and public p io i y.
In he age o GenAI, his pa adox deepens. The moonsho ambi ions o U ban AI p omise
op imiza ion, au oma ion, and hype -e iciency in u ban se ice deli e y— om eal- ime
mobili y managemen o p edic i e wel a e sys ems. Bu who de ines hese goals, and a wha
socie al cos ? As Hallons en (2024) no es, oday’s public policy discou se o en celeb a es
“inno a ionism” as a echnoc a ic ix-all, neglec ing he s uc u al inequali ies ha shape he
li ed eali ies o ci izens—pa icula ly in algo i hmically go e ned ci ies.
This sec ion con on s ha imbalance head-on. I in i es esea che s om applied economics,
public policy, and AI go e nance o g apple wi h he misma ch be ween high- ech
expe imen a ion and low- us public en i onmen s—be ween moonsho s in algo i hmic
decision-making and pe sis en go e nance de ici s in u ban li e. The challenge is no me ely
o make U ban AI wo k, bu o make i ma e —ins i u ionally, democ a ically, and
economically.
Building on Nelson’s amewo k, his Special Issue a gues ha he p omise o U ban AI will
be hollow unless accompanied by a ecalib a ion o go e nance a chi ec u es. D awing on
Schumpe e ian insigh s (1943) and e olu iona y economics (Nelson & Win e , 2006), he
sec ion si ua es GenAI no simply as a on ie o echnical p og ess bu as a public choice:
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how inno a ion sys ems a e s uc u ed, which missions a e p io i ized, and whose in e es s hey
se e.
The eal challenge, hen, is no how we enginee U ban AI o achie e moonsho capabili ies,
bu how we design inclusi e, accoun able, and cohe en policies ha b ing hese sys ems down
o ea h—in o he messy, plu alis ic, and con es ed e ain o he u ban social con ac .
Concluding he Call: F om he Ghe o o he Ci y—T us wo hy AI as a Democ a ic
P ojec
To b ing his edi o ial ull ci cle, we e u n o Richa d Nelson’s endu ing p o oca ion and o
Jane Foun ain’s (2022) ecen and powe ul e isi a ion o The Moon and he Ghe o. Foun ain
exposes how algo i hmic sys ems—unde he guise o neu ali y and objec i i y—can
ep oduce he e y sys emic injus ices hey pu po o esol e (Au ho and Eizagui e, 2025b).
He in e en ion challenges us o in e oga e he mechanisms by which AI embeds bias,
ins i u ionalizes inequali y, and limi s ecou se o hose mos a ec ed by au oma ed decisions.
Foun ain’s insigh is c ucial: he p oblem is no AI pe se, bu he socie al s uc u es i e lec s
and ein o ces when le unexamined.
Agains his backd op, us wo hy AI canno be buil h ough code alone (Monsees, 2019). I
mus be co-cons uc ed h ough ins i u ional us , democ a ic accoun abili y, and ci ic
legi imacy. This is especially u gen in ci ies, whe e algo i hmic sys ems inc easingly in e sec
wi h complex issues o ace, class, housing, policing, and wel a e. I we ail o ask “ us wo hy
o whom?”, we isk epea ing a long his o y o exclusion— his ime, encoded in code.
O e he pas decade, I ha e had he p i ilege o con ibu ing o hese deba es h ough esea ch,
eaching, and ac ion a he Uni e si y o Ox o d and beyond, ocusing on he in e sec ion o
AI, ci ies, and digi al so e eign y. This Special Issue con inues ha commi men . I b ings
oge he in e disciplina y oices om ac oss he globe o conside no only he capabili ies o
GenAI, bu also i s consequences o public li e. A s ake is no hing less han he u u e o
democ a ic go e nance in a compu a ional e a.
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We in i e au ho s o join us in his collec i e e o . Le his no be ano he moonsho ha
bypasses he ghe o. Le his be a u ning poin whe e inno a ion mee s inclusion—and whe e
go e nance eclaims i s igh ul place a he cen e o he algo i hmic age.
This Special Issue o e s a space o e hinking GenAI no jus as a echnological a i ac , bu
as a democ a ic p ojec . T us wo hiness is no a ixed a ibu e bu an ongoing achie emen —
one ha depends on legi imacy, accoun abili y, inclusi eness, and ci ic imagina ion. As
esea che s, policymake s, and ci izens, we mus ask no only wha AI can do o go e nance,
bu also wha kind o go e nance we wan in an AI-media ed wo ld.
We welcome heo e ical, empi ical case s udies, and p ac ice-based submissions ha g apple
wi h hese ques ions. Th ough his Special Issue, we aim o assemble a ich and di e se
con e sa ion ha can in o m policy, inspi e ac ion, and deepen ou collec i e unde s anding o
AI in public li e. We hank all p ospec i e au ho s o hei insigh , engagemen , and
commi men o ans o ma i e public sec o inno a ion. We look o wa d o you
con ibu ions: h ps://www.eme aldg ouppublishing.com/calls- o -pape s/gene a i e-ai-and-
u ban-ai-policy-challenges-ahead- us wo hy-ai-whom
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