NYC Comptroller warns AI could eliminate 110,000 jobs as city 'sleepwalks' into technological shift

New York official warns AI could cost city thousands of jobs

A New York City official warned this week that those working in the Big Apple could face the brunt of the negative impacts of artificial intelligence, possibly costing the city thousands of jobs. Comptroller Mark Levine laid out scenarios the city will face tied to future impacts of AI on the economy and job market in a new report shared by his office on Thursday "Despite the impossibly high stakes for us as we stare down the radical transformation ahead, New York City -- economic and cultural colossus -- is doing almost nothing to prepare," Levine wrote. "We are sleepwalking into the age of AI." In the best-case scenario, the stock market could surge by 9 percent, and the number of office job openings could increase by 1 percent annually between 2025 and 2030. On the most dire and unlikely end, this new tech boom could cost the private sector a loss of around 110,000 jobs in 2027, according to the report. The comptroller also found that the most likely outcome was a scenario in which AI creates moderate job and economic growth, with jobs in the private sector growing by 52,000 per year between 2025 and 2030. In the second most likely outcome, the emerging technology would "fall flat" and the private sector would shrink by 52,500 jobs within a year. The report's findings are based on data from Moody's Analytics, a rating agency, which looked broadly at the impacts of AI on the U.S. economy and jobs. Levine cited the city's strong economic ties to industries that are adopting this new technology and a tax base reliance on office and finance jobs. "There is no city in America -- and perhaps none on earth -- more exposed to both the promise and peril of artificial intelligence than New York City," the comptroller wrote. "And there are few places with more power to steer the transformation ahead." He added that an "immediate priority" should be increasing the city's rainy day fund to a recommended 16 percent of annual tax revenue. Additionally, Levine urged reform for the pension system and safeguarding public infrastructure against "AI-powered threats." "If predicting the impact of transformative AI is hard, designing the policies needed to respond is harder still," Levine continued. "But we cannot let uncertainty paralyze us." "We have to begin the work now -- and in the months ahead, my office intends to lay out a broad agenda to help City government meet the challenges ahead," the official wrote.

NYC Comptroller Mark Levine Warns AI Could Eliminate 110,000 Jobs, Says City Is 'Sleepwalking Into The Ag

New York City's top fiscal watchdog is warning that artificial intelligence could dramatically reshape the city's economy and eliminate thousands of jobs if officials fail to prepare for rapid technological change. AI Job Loss Warning In New York City On Thursday, New York City Comptroller Mark Levine released a report outlining multiple scenarios for AI's economic impact, ranging from strong growth to significant job losses. Levine cautioned that city leaders are underestimating the scale of disruption ahead. "Despite the impossibly high stakes for us as we stare down the radical transformation ahead, New York City -- economic and cultural colossus -- is doing almost nothing to prepare," Levine wrote. He added that the city is "sleepwalking into the age of AI." The report, based on Moody's Analytics data, projected outcomes including a best-case scenario of stock market gains of up to 9% and 1% annual growth in office jobs through 2030. A more severe scenario estimated a loss of about 110,000 private-sector jobs by 2027, while the most likely outlook showed moderate growth of roughly 52,000 jobs annually. Another scenario projected a decline of about 52,500 jobs within a year if AI adoption slows. Levine also urged stronger fiscal preparation, including expanding the city's rainy day fund to 16% of annual tax revenue and strengthening infrastructure against "AI-powered threats." "There is no city in America -- and perhaps none on earth -- more exposed to both the promise and peril of artificial intelligence than New York City," he said. AI Job Loss Warnings Grow Warren called for stronger worker protections, including universal health care, expanded education access and improved unemployment support, arguing that job security should not determine access to basic services. Khosla predicted a more dramatic shift, saying AI and robotics could eventually perform most jobs and reshape the global economy by reducing costs and increasing productivity. He suggested it could also lead to greater long-term abundance. Nadella said AI-driven displacement was already underway and that businesses and workers who fail to adapt risk being left behind, especially in fields like software development. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Golden Dayz / Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.