Shaping the Future of Italian Cities: Smart Governance, Digital Innovation, and Citizen Centric Public Administration

As Italian cities navigate the complex challenges of sustainability, efficiency, and social inclusion, digital innovation is increasingly becoming the cornerstone of urban transformation. Between growing investments, uneven technological maturity, and new data driven governance models, public administrations are redefining how cities are managed and how services are delivered to citizens, laying the foundations for a smarter, more connected, and resilient urban future

Smart cities and digital services for citizens represent one of the most significant transformations currently reshaping public administration and urban governance in Europe, and Italy is no exception. Over the last decade, Italian cities have progressively embraced the smart city paradigm as a strategic framework to address structural challenges such as urban congestion, environmental sustainability, energy efficiency, and the growing demand for more accessible and transparent public services. According to the most recent report by the Smart City Observatory of the Polytechnic University of Milan, the market for smart city solutions in Italy exceeded one billion euros in 2024, marking a growth of five percent compared to the previous year. While this milestone confirms the vitality of the sector, it also highlights a structural gap when compared to the European average, underscoring the need for further acceleration. This dual dynamic is reflected in the fact that around forty two percent of Italian municipalities have implemented at least one smart project in the past year, while an overwhelming majority, ninety one percent, plan to launch similar initiatives by the end of 2026, signaling a widespread awareness of the strategic relevance of digital innovation at the local level.

From an investment perspective, the allocation of resources reveals the priorities that currently guide urban digitalization strategies in Italy. Public lighting stands out as the leading area of investment, accounting for approximately two hundred forty million euros and nearly a quarter of total spending on smart city projects. This focus reflects the immediate benefits of intelligent lighting systems in terms of energy savings, safety, and operational efficiency. Closely following is smart mobility, with investments of around two hundred fifteen million euros, driven by the need to improve traffic management, reduce emissions, and enhance the integration of public and private transport systems. Alongside these sectors, a growing share of initiatives addresses urban security and surveillance, renewable energy communities, intelligent waste management, energy efficiency, and the development of digital services aimed directly at citizens, contributing to a more sustainable and responsive urban environment.

Despite these advances, the adoption of advanced technologies such as artificial intelligence remains at an early stage. Currently, only four percent of Italian municipalities have launched projects explicitly based on AI and algorithmic technologies, although more than a third have declared their intention to do so within the next two years. This data highlights both a delay and a significant opportunity, as artificial intelligence has the potential to radically improve predictive capabilities, resource optimization, and decision making processes across multiple domains of urban management. The path toward full digital maturity therefore remains under construction and makes clear that the concept of a smart city cannot be reduced to the mere deployment of digital infrastructure. Instead, it requires the systemic and large scale use of data, the ability to govern and interpret it effectively, and the capacity to transform insights into concrete, measurable actions that generate value for communities.

At the same time, the persistence of the digital divide, particularly in smaller municipalities and more vulnerable territories, continues to represent a critical challenge. In response, several public administrations are experimenting with innovative governance and operational models such as digital twins and Smart Control Rooms, which enable the integrated management of energy, mobility, environmental data, and public services. These tools support a holistic vision of the city and contribute to strengthening urban resilience by allowing administrators to anticipate risks, coordinate interventions, and optimize resources in real time. However, technological experimentation alone is not sufficient. A profound cultural and organizational evolution is required, one that goes beyond the installation of sensors and platforms and includes the development of digital skills, robust governance structures, and a long term strategic vision. In this sense, the smart city paradigm is no longer perceived as a distant future scenario, but as a concrete lever to make public administration more efficient, transparent, and closer to the needs of citizens and businesses.

Within this broader framework of urban and digital transformation, Citizy emerges as a comprehensive and forward looking solution designed to support public administrations in their journey toward smart governance. Developed by Almaviva, Citizy is an open SaaS marketplace conceived to transform the management of public entities into an integrated, data driven ecosystem centered on the community and the citizen. Presented at the latest ANCI Assembly in Bologna, the platform addresses the needs of administrations of all sizes, from small municipalities to large metropolitan areas, by placing data from diverse urban domains at the core of decision making processes. Through real time data processing, Citizy enables advanced analytics, supports strategic planning, and promotes secure information sharing among stakeholders, fostering a coordinated and coherent approach to territorial policies. Its modular and scalable architecture allows seamless integration with existing systems, external platforms, and services provided by other entities, thereby enhancing responsiveness and operational efficiency.

From a technological standpoint, Citizy is part of Almaviva’s GIOTTO Digital Ecosystem and is built on a shared data model that ensures interoperability and contextual analysis of heterogeneous information. This approach makes it possible to correlate data from different sources within a unified framework, such as assessing the impact of environmental pollution on public health. The multi tenant architecture enables unified service management and the coexistence of multiple modules without conflicts, facilitating the integration of third party solutions, including those already adopted by public administrations. Beyond its technical foundation, Citizy embodies a broader vision of civic participation, drawing on Almaviva’s decade long experience in the digital transformation of Italian cities. The platform incorporates tools for citizen engagement, artificial intelligence, and augmented reality, empowering users to report issues, propose solutions, and actively contribute to the continuous improvement of public services. The ultimate objective is to foster more connected, sustainable, and inclusive urban communities.

The functional scope of Citizy spans a wide range of domains that are essential to urban quality of life and administrative effectiveness. Urban mobility represents one of the core pillars of the platform, supported by a comprehensive suite of digital tools for managing traffic flows, parking, fines, permits for driveways and people with disabilities, authorizations for the occupation of public land, and related administrative procedures. In the areas of environment and energy, Citizy provides advanced solutions for environmental monitoring, energy consumption control through integration with BEMS and BIM systems, maintenance of urban green areas, and the prevention of waste abandonment. These capabilities enable data driven and predictive planning, supporting more sustainable and efficient urban policies.

In addition, Citizy plays a key role in the digitalization and simplification of building and asset management processes, including authorization procedures, concession management, urban planning, and the inventorying and enhancement of public assets. The platform also extends its impact to the cultural, sports, and social welfare sectors. In the field of culture and sports, it supports the digital management of events, facilities, and public spaces, enabling online booking, calendar coordination, and analytics on participation flows. In the area of local welfare, Citizy allows administrations to digitalize and customize complex procedures, strengthen coordination among offices, institutions, and associations, and improve the delivery of social assistance, education services, inclusion policies, and economic support measures. Through this integrated and citizen centered approach, Citizy exemplifies how digital platforms can serve as enablers of more effective, equitable, and sustainable public administration.