Smart Cities in Libya: Visionary or Unrealistic?

20 أكتوبر 2025

Analyzing Libya’s technological ambitions amid global debates on the AI bubble and innovation trends.

Global discussions about the possibility of an AI bubble burst have intensified as major tech corporations invest billions into artificial intelligence infrastructure. Yet, leading figures in the global tech industry remain unconvinced that AI’s rapid growth is merely speculative. Instead, they emphasize that what is unfolding represents genuine technological transformation, not hype. This distinction carries profound implications for Libya technology initiatives and the nation’s vision for developing smart cities rooted in sustainable digital progress.

NVIDIA’s CEO Jensen Huang has been one of the most vocal opponents of the AI bubble Nvidia narrative. Speaking recently, Huang argued that the shift from general-purpose to AI-driven computing is far from complete. “Until everything from recommendation engines to content generation is AI-based, there’s not going to be a glut,” he said. His comments reflect the reality that global infrastructure is still struggling to meet growing AI demand rather than oversupplying it.

This sentiment is echoed by industry leaders such as Ahmad Alkhallafi of Hewlett Packard Enterprise (HPE), who notes that existing AI infrastructure is running at full capacity. Similarly, Ahmad Shakora of Cloudera points out that fears of an AI bubble often arise when innovation outpaces understanding, not when real progress is being made. These perspectives are vital for nations like Libya, where technological innovation is being positioned as the foundation for national renewal.

In Libya, the development of smart cities is being discussed not only as an urban project but as a vision for socioeconomic transformation. However, the sustainability of this vision depends on how effectively Libya integrates lessons from global AI leaders. With the AI trend 2025 indicating that artificial intelligence will continue reshaping global infrastructure, Libya must align its digital strategies with genuine market needs much like the UAE and Saudi Arabia, where structured AI frameworks have driven measurable progress.

While the UAE and other Gulf nations have invested heavily in AI ecosystems and data governance, Libya’s opportunity lies in establishing its own network of Libya technology companies that can adapt international models to local challenges. This means prioritizing data infrastructure, AI education, and cybersecurity readiness ensuring that innovation is both responsible and relevant to Libya’s socioeconomic realities.

Helmut Reisinger of Palo Alto Networks warned that “AI is not a risk in itself, it’s a capability,” emphasizing that the real threat lies in failing to adopt or manage AI effectively. For Libya, this insight highlights the dual role of technology as both a growth engine and a safeguard against emerging digital risks. With sound governance and informed investment, Libya can turn its smart city projects into enduring pillars of technology, information and digital sovereignty.

In essence, while global investors debate the likelihood of an AI bubble burst, the evidence points toward sustained growth driven by authentic demand. Libya’s challenge is not whether its smart city ambitions are visionary or unrealistic but whether it can harness technological innovation with the discipline, foresight, and infrastructure required to transform vision into reality.