A smart city is an urban model that leverages technology, human capital, and governance to improve sustainability, efficiency, and social inclusion, which are considered goals for cities of the future. Smart cities use digital technology to collect data and operate services. Data is collected from citizens, devices, buildings, or cameras. Smart city applications are diverse and include, but are not limited to, traffic and transportation systems, power plants, utilities, urban forestry, water supply networks, waste disposal, criminal investigations, information systems, schools, libraries, hospitals, and other community services. The foundation of a smart city is built on the integration of people, technology, and processes, which connect and interact across sectors such as healthcare, transportation, education, infrastructure, etc. Smart cities are characterized by the ways in which their local governments monitor, analyze, plan, and govern the city. In a smart city, data sharing extends to businesses, citizens, and other third parties who can derive benefit from using that data. The three largest sources of spending associated with smart cities as of 2022 were visual surveillance, public transit, and outdoor lighting.
Smart cities integrate Information and Communication Technologies (ICT), and devices connected to the Internet of Things (IOT) network to optimize city services and connect to citizens. ICT can enhance the quality, performance, and interactivity of urban services, reduce costs and resource consumption, and to increase contact between citizens and government. Smart city applications manage urban flows and allow for real-time responses. A smart city may be more prepared to respond to challenges than one with a conventional "transactional" relationship with its citizens. Yet, the term is open to many interpretations. Many cities have already adopted some sort of smart city technology.