Background. Cities face growing governance pressures as rapid urbanisation, climate risks, and socio-economic inequalities intersect with digital transformation. Smart governance seeks to use digital technologies to support coordinated, participatory, and sustainability-oriented decision-making, but outcomes remain uneven and contested.
Methods. This paper conducts a structured narrative review (2010-2025) spanning smart governance, sustainable cities, public sector AI, urban AI, e-participation, and emerging AI localism. The synthesis integrates conceptual foundations, patterns of AI adoption in local government, and municipal approaches to governing AI.
Results. The review maps major AI application domains in cities and identifies recurring governance instruments, including strategies, procurement rules, algorithm registers, impact assessments, oversight bodies, and participation mechanisms. Across domains, persistent tensions emerge between efficiency-driven rationales and justice-oriented sustainability goals, shaped by institutional context and capacity.
Conclusions. Building on the synthesis, the paper proposes a multidimensional framework linking institutions, governance capacity, data infrastructure, AI systems, governance instruments, participation, and sustainability and justice outcomes. The framework supports more responsible and context-sensitive AI governance research and practice in cities.
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