A new report from Accenture and Tech:NYC predicts that New York City is primed for a massive economic boom from artificial intelligence over the next 15 years. The study estimates AI could generate a staggering $320 billion in additional economic value for New York State by 2038 beyond current forecasts.
The key driving factor is New York’s deep pool of AI talent and its status as a leading AI investment hub. According to the report, 90% of NYC executives cited access to skilled AI professionals as critical to their success with the transformative technology.
AI TalentMagnet
The New York metro area already employs over 40,000 AI professionals, more than any other U.S. city except San Francisco. Elite universities like Columbia and NYU are pumping out top AI talent, while the city has emerged as the second-largest U.S. hub for AI startup funding after Silicon Valley.
In 2022 alone, New York AI companies raised over $3.8 billion in venture capital across 188 deals. Notable NYC AI firms include C3 AI, Anthropic, Diffblue, Dataminr and Clarifai.
Diverse Industry Strengths
The report cites New York’s unique strengths across fields like finance, healthcare, media and real estate as providing fertile ground for AI innovation to drive economic impact. The financial sector is already using AI for applications like fraud detection, while fields like entertainment could be augmented in new ways.
Accenture’s analysis found that 63% of all working hours in NYC could be impacted by AI through automation or augmentation. This potential to transform how work gets done is a key driver of the projected $320 billion economic opportunity.
Investing in AI’s Future
To realize this economic windfall, the report recommends New York invest heavily in AI education and research, provide incentives for AI companies, and form partnerships to create AI jobs. It cites New York’s new Empire AI consortium of universities, industry and government as a major step in this direction.
Executives surveyed emphasized the need for continued AI workforce development through programs like apprenticeships and scholarships. Fostering collaboration between academia, businesses and talent was seen as the single most important action NYC leaders could take.
Regulatory Approach
New York has taken an active approach to AI policy, introducing various laws and guidelines. 96% of executives agreed government has a strong role to play in ensuring responsible AI use.
Potential Hurdles
While optimistic overall, the report flags potential challenges like clearly defining new AI roles, determining return on AI hiring investments, and promoting inclusion in AI recruitment.
With its potent mix of talent, investment, cross-industry strengths and responsible AI approaches, New York appears poised to cement its place as a global AI powerhouse in the coming decade if it plays its cards right. The massive $320 billion economic opportunity quantified underscores the stakes for the city.
