May 2, 2024 New York City’s business elite are increasingly optimistic about the transformative potential of artificial intelligence, according to a comprehensive report by Accenture. This comes even as the city trails behind the Bay Area in becoming a leading hub for AI innovation and venture capital investment.
While the Bay Area gets a lot of attention, New York City is a formidable contender in the AI race, primarily due to its status as the home base for more Fortune 500 companies than any other city. This unique positioning is pivotal as these corporations are crucial in adopting and integrating AI technologies.
A survey by Accenture involved 500 C-level executives across 20 industries within the city, aiming to gauge AI’s projected impact on the metropolitan and state economies. The findings suggest a robust confidence among these leaders, with 97% viewing AI as having a net positive impact on society, and 87% believing that NYC residents are well-informed about AI’s benefits.
The survey highlighted a significant shift towards skill-based hiring, potentially diminishing the traditional emphasis on educational pedigree. This is particularly relevant as Accenture estimates that 63% of work hours in New York City could be automated or augmented by generative AI, a stark contrast to the 44% across the United States, with the financial services sector leading at 70%.
Accenture modeled three AI development strategies: aggressive, cautious, and people-centric. The people-centric approach, which focuses on augmenting work rather than merely reducing costs, is projected to add the most economic value—potentially boosting New York state’s annual GDP by $320 billion by 2038.
The study also points out that while there is no consensus on the ideal government incentives for AI development, there is a clear call for more support for collaborations among academic institutions, companies, and talent pools. However, despite the optimism and ambitious projections, NYC still significantly lags behind the Bay Area in several key metrics of AI leadership, including the concentration of leading AI startups.
This enthusiasm for AI in New York City underscores a critical phase of technological adoption and adaptation, setting the stage for potentially reshaping its economic landscape and labor market dynamics.
