Companies are leveraging data and artificial intelligence to create scalable solutions -- but they're also scaling their reputational, regulatory, and legal risks. For instance, Los Angeles is suing IBM for allegedly misappropriating data it collected with its ubiquitous weather app. Optum is being investigated by regulators for creating an algorithm that allegedly recommended that doctors and nurses pay more attention to white patients than to sicker black patients. Goldman Sachs is being investigated by regulators for using an AI algorithm that allegedly discriminated against women by granting larger credit limits to men than women on their Apple cards. Facebook infamously granted Cambridge Analytica, a political firm, access to the personal data of more than 50 million users.

Governments have defined almost every conceivable aspect of property ownership. Can I cut down my neighbors' tree if it grows over my patio? Only those limbs that grow over the property line. Can I play music on my porch? Only if it doesn't interfere with your neighbor's enjoyment of their property.

There is great potential for the use of Artificial intelligence (AI) by cities. With the help of AI, we can provide more responsive services to citizens. However, AI poses ethical issues that need special attention, as Chief Digital Officers of London and Helsinki here we explain why and suggest an approach for city government. The use of automation and machine learning systems is not a new phenomenon in public administration, but it is being transformed in how it is being used -- from automating simple transactions to more complex problem-solving. Today we see adoption across a range of municipal services -- chatbots in customer services, prioritisation of housing repairs, traffic signalling, demand-responsive transport, even library book management systems.