- Venture capitalists see New York City as particularly advantageous for AI development, dubbing it the “applied capital of AI.”
- Key sectors like media, finance, and healthcare in New York are drawing in AI companies such as OpenAI, which boosts the tech sector’s growth.
- This upbeat outlook contrasts with a report from City Auditor Mark Levine, indicating that AI could potentially displace up to 250,000 jobs.
In the heart of New York, Comptroller Mark Levine has raised concerns about AI’s impact on employment, yet investors in technology seem to have a different perspective. They suggest that the city is in a prime position to capitalize on AI, given its diverse industrial landscape.
“Many applications and implementations of technology in sectors like media, fashion, finance, and healthcare are likely to emerge here in New York City,” noted David Haber, a partner at Andreessen Horowitz.
He points out that, while foundational models and infrastructure are still being developed in San Francisco, New York is evolving into a center for practical AI, where technology directly influences various industries and reshapes working practices.
Data supports his claims. New York’s tech sector is expanding at a staggering rate—eight times faster than other industries—and Haber believes the true growth phase is just beginning.
“It’s only the beginning,” he mentioned. “Currently, the adoption rate of this technology is at just 1%,” which is why companies like OpenAI are establishing operations in the city. Their closeness to various fields, from healthcare to finance, offers advantages that can’t be replicated in Silicon Valley.
Mr. Haber’s investments are yielding results. Only two years post-launch, Moment, an AI asset management firm in his portfolio, has already formed alliances with major financial institutions like Edward Jones and LPL Financial.
New York City’s hopeful outlook is evident at NY Tech Week, starting Monday and going through Sunday. Organized by a16z, this week-long event is set to gather around 40,000 participants across 1,500 events, including banks, law firms, and other businesses eager to embrace new technologies.
However, this optimism sharply opposes last month’s report from Levine, which flagged AI as a significant threat to employment in New York. Depending on different scenarios, the private sector might lose roughly 110,000 jobs by 2027. In extreme cases, an “AI shockwave” could wipe out up to 250,000 positions, particularly in white-collar roles.
Julie Samuels, president of Tech:NYC, who collaborates with banks and consulting firms worried about these projections, recognizes this conflict.
“Historically, every tech revolution has boosted productivity and created jobs,” she shared. “Still, we must face the fact that the shift could be challenging for many, and we need to approach this situation earnestly.”
Anthropic’s upcoming IPO is anticipated to be among the largest in recent years, offering substantial profits to the very companies auditors have raised alarms about. Notably, a prestigious law firm and a large financial institution are aiming for significant gains.
Haber believes that industries failing to embrace AI are the ones that will really struggle.
“Companies that are integrating AI are the ones hiring the most,” he asserted. “AI is set to drive tremendous growth and enhance productivity for everyone involved.”
Marc Andreessen famously said, “Software is eating the world.” Perhaps a fitting sequel would be that AI is set to consume software, positioning New York as a vital hub for the industries that will harness AI’s full potential.
