Economic uncertainty is forcing cities to rethink technology investments, AI and resilience

As federal pandemic relief and infrastructure funding winds down, cities across the U.S. are increasingly looking to new technologies, like artificial intelligence, to help stretch limited budgets and support economic development, according to a report published Friday.

The National League of Cities, an advocacy group, identifies in its annual State of the Cities report that economic development is top priority for mayors in 2026, followed by infrastructure, public health and safety, housing and budget management. But unlike in previous years, technology is less a standalone priority than an enabler across nearly every policy area, the report’s authors found, from workforce development and AI adoption to cybersecurity and resilient infrastructure.

Christine Baker-Smith, the league’s research director, said cities are approaching technology with a broader perspective than one that simply adopts new tools.

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