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
Earlier, Sen. Elizabeth Warren (D-Mass.), investor Vinod Khosla, and Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella all warned that AI could significantly disrupt jobs and force major economic and policy adjustments.
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.
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