Milestone's Video Technology Powers Next-Gen AI for Smart Cities

Dubai is expanding its innovative work in developing artificial intelligence-powered traffic technology through its AI Strategy 2030, looking to transform urban mobility through advanced AI traffic control systems, directed by the Roads and Transport Authority (RTA).

A new opportunity is now emerging for smart cities like Dubai. Milestone Systems has launched Project Hafnia - a collaborative project aimed at building a compliant data library and creating high-performing AI models, so-called visual language models.

The future of smart city technology and transformation of urban mobility and safety isn't being shaped in Silicon Valley — it's taking root in the small US city of Dubuque, Iowa. The city has become a live testbed for AI-driven traffic management thanks to the unique public-private collaboration led by Milestone Systems under Project Hafnia.

Challenge: High-Potential AI, Low-Quality Data

Despite extensive camera deployments, cities often struggle to derive real-time intelligence from video. AI models trained on synthetic or generic datasets frequently underperform in complex, real-world environments. High false-positive rates make them impractical for daily operations, especially in time-critical applications like traffic management, preventing municipalities from gaining the real-time insights needed to improve mobility, safety, and emergency response.

Solution: Public-Private Innovation in Action

Project Hafnia, led by Milestone Systems, develops a high-performance, real-world AI model. Milestone led the 12-month project from initial concept to full-scale deployment, investing in cloud-based AI training and professional video annotation. Unlike conventional vendor-customer setups, this collaboration was structured with shared value in mind: each party contributed expertise, resources, and infrastructure, aligning toward a common goal.

At the heart of this success story is Milestone’s investment in creating a secure, high-quality, and legally compliant data library that supports transparency and data traceability requirements in evolving AI regulations. Milestone transformed the city’s raw traffic footage into valuable AI training material. This investment paid off dramatically, with model accuracy jumping from 80% to over 95%. Below that threshold, false positives are too frequent, undermining usability. Above it, cities unlock new levels of accuracy and insight.

Results: Scalable, Transferable, Trusted

With more than 100 traffic cameras participating in the trial, Project Hafnia validated AI performance in the field across a range of changing light, weather, and traffic patterns. The resulting platform is scalable and transferable, giving other cities a tested blueprint for AI-enhanced urban operations. AI models originally developed for traffic monitoring (vehicle classification, pedestrian tracking, anomaly detection) can now be repurposed to support public safety, emergency response, and infrastructure planning across departments.

Louise Bou Rached, Director – Middle East, Turkey and Africa, Milestone Systems, expressed, "Project Hafnia shows how a collaborative strategy and a shared dedication to data integrity can contribute to transforming urban solutions. Milestone Systems and its partners have attained unmatched model accuracy of over 95% by using real-world traffic footage and careful data annotation, thus facilitating cities like Dubuque and Dubai to deploy artificial intelligence with confidence. This project not only shows scalable and transferable technology but also opens the door for more sustainable, safer, and smarter urban mobility worldwide."

A New Framework for Public-Private Innovation

Beyond the technical achievements, the project established a new template for collaboration between cities, technology vendors, and platform providers. Rather than a traditional vendor-customer relationship, the collaboration operated on balanced value exchange principles.

The collaboration brought together diverse perspectives and created a forward-looking solution that evolved organically. From concept to working prototype to full-scale deployment, every participant helped shape the outcome.

Thomas Jensen, CEO of Milestone Systems, emphasized the broader vision: “At Milestone, we believe that AI innovation starts with trusted data and open collaboration. Project Hafnia proves that with the right platform, even mid-sized cities like Dubuque can lead the way in responsible, data-driven transformation. This is a blueprint for how cities everywhere can harness AI to improve safety, mobility, and quality of life — all while staying in control of their data.”

Project Hafnia not only demonstrated that real-world AI can work, it showed that it can scale, ethically and collaboratively.

Project Hafnia is more than a traffic management success story. It’s a living prototype of how cities — big or small — can unlock the full potential of AI by investing in data, partnerships, and transparency.