AI and Automation in Cities: A Cybersecurity Wake-Up Call

Angela Novelli
May 2
5 min read

As cities, counties, and towns across the country embrace Artificial Intelligence (AI) and automation to modernize services, improve efficiency, and better serve their constituents, there’s an invisible—but growing—risk lurking underneath: cybersecurity exposure. From AI-powered chatbots and traffic management systems to predictive analytics in public health and utilities, local governments are rapidly integrating technologies that promise a smarter, more connected future. But without a strong cybersecurity foundation, these innovations can quickly become dangerous liabilities.

The Cybersecurity Threat Landscape Has Shifted

Here’s the reality: every time a municipality deploys an AI model or automation workflow, it’s not just improving services—it’s expanding its attack surface. And malicious actors are watching.

New Vulnerabilities Emerging

Interconnected Systems: AI pulls from multiple data sources. APIs, IoT sensors, and cloud platforms—all become potential entry points for attackers. For example, a smart traffic management system that uses real-time data from cameras and sensors could be compromised, leading to manipulated traffic flows and potential accidents.
Data Poisoning & Hallucinations: If AI is trained on flawed or manipulated data, it can make poor decisions, leak sensitive information, or propagate misinformation. Imagine a public health AI that, due to poisoned data, misdiagnoses patients or recommends harmful treatments.
Deepfake and Social Engineering 2.0: AI-generated voice and video deepfakes can impersonate public officials to commit fraud or spread disinformation. A deepfake video of a mayor announcing a false evacuation could cause widespread panic and chaos.
Third-Party Risk: Vendors delivering smart city platforms, AI services, or cloud infrastructure can become unmonitored gateways into critical municipal systems. For example, well-documented attacks on major software vendors used extensively by the public sector, such as the Kronos ransomware incident (late 2021), severely disrupted critical functions like payroll and scheduling for numerous cities and public agencies, highlighting the cascading impact of a third-party compromise.

Why Strong Cybersecurity is Non-Negotiable

The consequences of neglecting cybersecurity in AI-driven smart cities can be severe and far-reaching:

Loss of Public Trust: Cyberattacks erode public confidence in the ability of local governments to protect their data and ensure their safety. This can lead to decreased civic engagement and resistance to adopting new technologies.
Disruption of Essential Services: Attacks on critical infrastructure, such as power grids, water treatment facilities, or transportation systems, can disrupt essential services, endangering lives and causing widespread economic damage.
Financial and Legal Ramifications: Data breaches and cyberattacks can result in significant financial losses due to recovery costs, legal penalties, and reputational damage. Cities may also face lawsuits from citizens whose data is compromised.
Hindered Innovation: A lack of robust cybersecurity can stifle innovation, as cities become hesitant to adopt new AI technologies due to security concerns. This can put them at a disadvantage in terms of economic competitiveness and quality of life for residents.

According to a recent report by Cybersecurity Ventures, global smart city cyberattacks are projected to cost $20 billion in 2025, up from $12 billion in 2020.

Cybersecurity in the Age of Automation: What Cities Must Do

This isn’t a matter of if—but when. Municipalities must act proactively, not reactively, to safeguard their AI-enabled infrastructure. Here's how:

Adopt a Zero Trust Model
- Strong identity access controls (MFA, RBAC)
- Continuous device posture assessments
- Network micro-segmentation
Secure AI Models and Workflows
- Deployed AI models and their data access scopes
- Data flow architectures and storage locations
- Connected APIs and third-party services
Modernize Endpoint and Cloud Security
- EDR/XDR (Endpoint/Extended Detection and Response)
- SIEM/SOAR platforms for real-time threat detection and orchestration
- Continuous vulnerability management and patching
Train Your People for AI-Era Threats
- Prompt injection and generative AI abuse
- Hyper-personalized phishing and synthetic identity fraud
- Deepfake impersonation of leadership or emergency services
Build AI-Resilient Incident Response Plans
- Model corruption or unauthorized usage
- Exploitation of AI-based public services
- Response to misinformation generated or amplified by AI
Strengthen Data Integrity and Metadata
- Clean, validated CMDBs and asset registries
- Secure metadata pipelines and logging infrastructure
- Cross-functional governance over infrastructure and data quality
Engage the Public with Transparency
- Where and how AI is deployed
- What data is collected and how it’s protected
- How residents can report issues or opt-out where possible

Addressing the Challenge of Legacy Systems

Many cities face the significant challenge of integrating new AI technologies with outdated legacy systems. These systems, often lacking modern security features, can become a major vulnerability. Here are strategies to address this:

Phased Modernization: Implement a plan for gradually upgrading or replacing legacy systems, prioritizing those that handle the most sensitive data or are critical to essential services.
Security Overlays: Apply security overlays to legacy systems, such as intrusion detection systems, firewalls, and advanced authentication methods, to add an extra layer of protection.
API Security: Secure APIs that connect legacy systems to new AI applications, ensuring that data transfer is encrypted and access is strictly controlled.
Data Isolation: Isolate sensitive data within legacy systems as much as possible, limiting access from AI applications to only the necessary information.
Regular Audits: Conduct regular security audits of legacy systems to identify vulnerabilities and ensure compliance with security best practices.

A New Normal Requires a New Mindset

Cities have always been on the front lines of change—from infrastructure and transit to public safety and healthcare. AI and automation will define the next generation of local governance. But without security embedded by design, municipalities risk building innovation on a shaky foundation. AI must be treated not just as a tool, but as a strategic capability—one that comes with immense promise and substantial risk. Cybersecurity is not a bolt-on; it is the bedrock. The next new-normal is already here. It’s time for cities to be just as smart about securing their future as they are about shaping it.

Call to Action

The security of our smart cities is a shared responsibility. Here's how you can make a difference:

Stay Informed: Follow cybersecurity news and trends to stay updated on the latest threats and best practices.
Engage with Your Local Government: Attend public meetings, contact your representatives, and advocate for stronger cybersecurity measures in your city.
Spread Awareness: Share this information with your friends, family, and colleagues to raise awareness about the importance of smart city cybersecurity.

By working together, we can build a future where our cities are not only smart but also secure.

How Sedna Contributes to the Future of AI in Cities

Sedna Consulting Group supports cities and counties in integrating AI technologies, with a strong emphasis on cybersecurity. As AI becomes more embedded in municipal operations, the potential for cyber vulnerabilities increases—opening the door to serious risks.

To mitigate these risks, our team includes experienced strategists, technologists, and cybersecurity specialists who work together to ensure AI is applied safely and responsibly.

We are committed to building a future where AI enhances the quality of life in communities—securely and effectively.

Thank you to our AI Cybersecurity Advisor, Ramit Luthra, for his valuable thought leadership in this article.