Received:
2024-09-11 | Accepted:
2024-12-09 | Published:
2024-12-30
Title
Using artificial intelligence (AI) for local territorial development: data-based machine diagnostics of Latvian municipalities
Abstract
The study investigates the application of artificial intelligence (AI), specifically the ChatGPT 4o tool, for data-based machine diagnostics of the local territorial development using Latvian municipalities as a case study. The topic is highly relevant due to the growing demand for precise, data-driven territorial diagnostics to address sustainable development and governance challenges. The study aims to evaluate AI tools' efficiency and contextual adaptability in performing municipalities' SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses based on their annual public reports. Using discourse analysis as the methodological framework, the study focuses on five municipalities representing different typological clusters in Latvia: Riga City Municipality, Yelgava City Municipality, Liepaja City Municipality, Ropazhi County Municipality, and Augshdaugava County Municipality. Empirical results demonstrate the AI tool's ability to conduct detailed SWOT analyses, uncovering nuanced insights such as demographic challenges, economic dependencies, and opportunities for green transition initiatives. Notably, the tool highlighted innovative perspectives, such as the competitive impact of proximity to Riga on surrounding municipalities. The study identifies the AI tool’s capabilities, including flexibility in focus, contextual socioeconomic and environmental factors integration, and efficiency in processing complex datasets. However, challenges such as data limitations and the necessity of human oversight were also noted. The findings contribute novel insights into the feasibility and potential of AI for local territorial diagnostics, paving the way for broader applications in regional development planning and policymaking.
Keywords
machine diagnostics, AI tool (ChatGPT 4o), discourse analysis, SWOT analysis, cluster analysis, Territorial Analytic Data (TAD), annual public report, local territorial development, Latvian municipalities
JEL classifications
R11
, R58
, O33
, Q01
URI
http://jssidoi.org/jesi/article/1270
DOI
Pages
443-459
Funding
This research was funded by Daugavpils University, Latvia.
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Abele, L., Rivza, B., Rivza, P., & Markus, K. (2023). Green competitiveness and digitalisation in Latvia municipalities. 23rd SGEM International Multidisciplinary Scientific GeoConference 2023. https://doi.org/10.5593/sgem2023/5.1/s20.18
Search via ReFindit
Arhipova, I., & Paula, L. (2015). Regional development and private consumption structure in Latvia. Procedia Economics and Finance, 26, 86–91. 00963-6 https://doi.org/10.1016/S2212-5671(15)
Search via ReFindit
Arnould, M., Morel, L., & Fournier, M. (2020). Developing a territorial diagnostic as part of a living lab process: Implementation to improve management and wood mobilization in small French private forest. 2020 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC), 1–9. https://doi.org/10.1109/ice/itmc49519.2020.9198373
Search via ReFindit
Aslaeva, S.S. (2020). Diagnostics of the development of territorial entities. Azimuth of Scientific Research Economics and Administration, 9 (32). https://doi.org/10.26140/anie-2020-0903-0014
Search via ReFindit
Bertacchini, Y., & Bouchet, Y. (2016). Territorial intelligence & artificial intelligence: On discussion. British Journal of Applied Science & Technology, 4 (5), 155–168.
Search via ReFindit
Cervera, J.L. (2021). Designing a territorial development monitoring system. News. https://decentralization.ua/en/news/13779?page=298
Search via ReFindit
Chao, J., & Tao, Zh. (2023). Research on regional integration development and artificial intelligence development under the background of regional economic integration – Taking China's Yangtze River Delta and Pearl River Delta as examples. AEBMR, 231, 1369–1378. https://doi.org/10.2991/978-94-6463-098-5_155
Search via ReFindit
Chehabeddine, M., & Tvaronavičienė, M. (2020). Securing regional development. Insights into Regional Development, 2 (1), 430–442. http://doi.org/10.9770/IRD.2020.2.1(3)
Search via ReFindit
Chmielewski, B. (2023). Far behind Riga: Latvia’s problems with uneven development, OSW Commentary, 498. https://www.osw.waw.pl/sites/default/files/OSW%20Commentary%20498.pdf
Search via ReFindit
European Commission. (2024). SWOT analysis – strengths, weaknesses, opportunities and threats. Supporting Tools. https://wikis.ec.europa.eu/display/ExactExternalWiki/SWOT+analysis+-+strengths%2C+weaknesses%2C+opportunities+and+threats
Search via ReFindit
Feng, W., Liu, Y., & Qu, L. (2019). Effect of land-centered urbanisation on rural development: A regional analysis in China. Land Use Policy, 87, 104072. https://doi.org/10.1016/j.landusepol.2019.104072
Search via ReFindit
Grybaite, V., & Tvaronavičiene, M. (2008). Estimation of sustainable development: germination on institutional level. Journal of Business Economics and Management, 9 (4), 327–334. https://doi.org/10.3846/1611-1699.2008.9.327-334
Search via ReFindit
Grytten, O.H., Norkus, Z., Markevičiūtė, J., & Šiliņš, J. (2024). A long-run perspective on Latvian regional gross domestic product inequality, 1925–2016. Baltic Journal of Economics, 24 (1), 88–115. https://doi.org/10.1080/1406099X.2024.2325232
Search via ReFindit
Hu, R., Bao, Z., Lin, Z., & Lv, K. (2024). The Innovative Construction of Provinces, Regional Artificial Intelligence Development, and the Resilience of Regional Innovation Ecosystems: Quasi-Natural Experiments Based on Spatial Difference-in-Differences Models and Double Machine Learning. Sustainability, 16(18), 8251. https://doi.org/10.3390/su16188251
Search via ReFindit
Kish, L. (1965). Survey Sampling. New York: John Wiley and Sons.
Search via ReFindit
Komarova, V., & Koroļova, S. (2021). Social context of creation, translation and perception of textbooks on economics of the 1990s, 2000s and 2010s. Sociālo Zinātņu Vēstnesis = Social Sciences Bulletin, 32 (1), 25–60. https://doi.org/10.9770/szv.2021.1(2)
Search via ReFindit
Komarova, V., Ignatjeva, S., Kudins, J., Kokarevica, A., Ostrovska, I., & Čižo, E. (2024). Latvian municipal budget expenditures on transport infrastructure and production in the context of improving the local economy. Journal of Eastern European and Central Asian Research, 11 (4), 736–753. https://doi.org/10.15549/jeecar.v11i4.1608
Search via ReFindit
Kudiņš, J., & Lazdāns, D. (2024). Transport development of Latvian municipalities in the context of spatial inequality. Sociālo Zinātņu Vēstnesis = Social Sciences Bulletin, 39 (2), 7–29. https://doi.org/10.9770/szv.2024.2(1)
Search via ReFindit
Laurini, R. (2023). Promises of artificial intelligence for urban and regional planning and policymaking. In: Knowledge Management for Regional Policymaking (pp. 3–20). https://doi.org/10.1007/978-3-031-15648-9_1
Search via ReFindit
Mietule, I., Komarova, V., Ostrovska, I., Ignatyevs, S., & Heimanis, B. (2022). Economic texts as a reflection of the social reality of the transition period in Latvia and Russia. RUDN Journal of Sociology, 22 (1), 168–185. https://doi.org/10.22363/2313-2272-2022-22-1-168-185
Search via ReFindit
Municipal Council of Augshdaugava County (Latvia). (2024). Public Report 2023 of Augshdaugava County Municipality. https://www.varam.gov.lv/lv/pasvaldibu-2023-gada-publiskie-parskati
Search via ReFindit
Municipal Council of Liepaya City (Latvia). (2024). Public Report 2023 of Liepaya City Municipality. https://www.varam.gov.lv/lv/pasvaldibu-2023-gada-publiskie-parskati
Search via ReFindit
Municipal Council of Riga City (Latvia). (2024). Public Report 2023 of Riga City Municipality. https://www.varam.gov.lv/lv/pasvaldibu-2023-gada-publiskie-parskati
Search via ReFindit
Municipal Council of Ropazhi County (Latvia). (2024). Public Report 2023 of Ropazhi County Municipality. https://www.varam.gov.lv/lv/pasvaldibu-2023-gada-publiskie-parskati/
Search via ReFindit
Municipal Council of Yelgava City (Latvia). (2024). Public Report 2023 of Yelgava City Municipality. https://www.varam.gov.lv/lv/pasvaldibu-2023-gada-publiskie-parskati
Search via ReFindit
Nadtochiy, I., Irtyshcheva, I., Krylenko, V., Tkach, V., Kramarenko, I., & Chumakov, K. (2022). Economic diagnostics of territorial development: National dimension and experience of EU countries. WSEAS Transactions on Environment and Development, 18, 486–495. https://doi.org/10.37394/232015.2022.18.47
Search via ReFindit
Saeima of Latvia. (2020). Law on administrative territories and populated areas. Latvijas Vēstnesis = Bulletin of Latvia, 119C. https://likumi.lv/ta/en/en/id/315654
Search via ReFindit
Sen, M., Sen, S.N., & Sahin, T.G. (2023). A new era for data analysis in qualitative research: ChatGPT. Shanlax International Journal of Education, 11 (S1-Oct), 1–15. https://doi.org/10.34293/education.v11iS1-Oct.6683
Search via ReFindit
Simonova, S., & Sykora, D. 2011a. Process modeling for regional territorial planning. Proceedings of the European Computing Conference, 410–414. https://www.researchgate.net/publication/228415260_Process_modeling_for_regional_territorial_planning
Search via ReFindit
Simonova, S., & Sykora, D. 2011b. Metrics of data model for regional territorial planning. International Journal of Systems Applications, Engineering & Development, 5 (5), 642–649. https://www.naun.org/main/UPress/saed/20-779.pdf
Search via ReFindit
Suárez-Roldán, C., Hernández-Atencia, Y., & Méndez-Giraldo, G. (2024). Method of selection of rural territory in the development of a territorial diagnosis. Journal of Engineering, 1, 8795216. https://doi.org/10.1155/2024/8795216
Search via ReFindit
van Dijk, T. (1976). Narrative macro-structures. Logical and cognitive foundations. PTL: A Journal for Descriptive Poetics and Theory of Literature, 1, 547–568. http://www.discourses.org/OldArticles/Narrative%20macrostructures.pdf
Search via ReFindit
van Dijk, T. (2006). Ideology and Discourse Analysis. Journal of Political Ideologies, 11 (2), 115–140. https://doi.org/10.1080/13569310600687908
Search via ReFindit
van Leuven, A. J., & Hill, E. W. (2021). Legacy regions, not legacy cities: Growth and decline in city-centered regional economies. Journal of Urban Affairs, 45 (10), 1860–1883. https://doi.org/10.1080/07352166.2021.1990775
Search via ReFindit
Voronov, V.V. (2022). Small towns of Latvia: disparities in regional and urban development. Baltic Region, 14(4), 39–56. https://doi.org/10.5922/2079-8555-2022-4-3
Search via ReFindit
Voronov, V.V., & Ruza, O. P. (2018). Youth unemployment in the Latgale region of Latvia: causes and consequences. Baltic Region, 10 (4), 88–102. https://doi.org/10.5922/2079-8555-2018-4-6
Search via ReFindit
Xue, B., Xu, Y., Yang, J., & Xiao, X. (2024). Applications in machine learning in national territory spatial planning. Applied Sciences, 14 (10), 4045. https://doi.org/10.3390/app14104045
Search via ReFindit
Yigitcanlar, T., Senadheera, S., Marasinghe, R., Bibri, S.E., Sanchez, Th., Cugurullo, F., & Sieber, R. (2024). Artificial intelligence and the local government: A five-decade scientometric analysis on the evolution, state-of-the-art, and emerging trends. Cities, 152, 105151. https://doi.org/10.1016/j.cities.2024.105151
Search via ReFindit