New York City is projected to experience a significant artificial intelligence boom worth $320 billion by the year 2038, largely due to its home-grown talent. A report by Accenture and Tech:NYC reveals that the city’s talent pool is considered a key factor in the success of the AI economy, with 90% of executives emphasizing its importance. Currently, New York already has 40,000 AI professionals and is the second-largest location for raising capital for AI companies.
The report predicts a substantial growth in the number of AI professionals in the city over the next three years, with executives focused on attracting more talent. By 2038, AI is expected to become prevalent in New York, with two-thirds of working hours being automated or augmented by AI. This shift is estimated to contribute billions to the local economy. Additionally, the study suggests that the majority of jobs in New York will be simplified rather than replaced by AI, providing opportunities for younger workers and those without traditional connections.
Unlike cities like San Francisco, where the focus is primarily on technology, New York has the potential to implement AI in a unique manner across various sectors. Various sources in the tech industry have indicated that AI is already transforming the city, with traditional sectors like finance, media, advertising, and fashion embracing AI technologies. New York is home to 35 AI “unicorns”, including companies such as Ramp, Runway AI, and Dataminr, which are being widely utilized by regular workers in various industries.
Grace Isford, a partner at New York-based venture firm Lux Capital, believes that New York is poised to become a major tech hub for AI due to its vibrant cultural and social scene, research labs, and diverse entrepreneur population. To attract and retain top talent, the city must continue to invest in research, support startups and existing institutions, and build a strong AI ecosystem. New York is also home to AI research labs at Columbia, Cornell, and NYU’s CILVR Lab, demonstrating the city’s commitment to advancing AI technologies.
Governor Kathy Hochul has unveiled a plan to invest $400 million in AI research and development in New York, through a program called “Empire AI”. This initiative aims to create a consortium of seven universities that will focus on investing in computing labs, research, and educating students in AI technologies. Gov. Hochul believes that whoever dominates the AI industry will shape the future, and she is determined to position New York as a leading player in the AI race. With the right investments, support, and collaboration, New York is well-positioned to become a thriving AI hub in the coming years.