Prime Highlights:

• AI-focused companies in New York are keeping employees in the office full-time, boosting collaboration and productivity.
• The city is benefiting from new industries, with increased office leasing and more workers returning, stimulating economic and social activity.

Key Facts:

• Andrew Kimball, CEO of the NYC Economic Development Corporation, says New York is a net winner from emerging industries despite some job changes.
• The trend mirrors developments that began in the San Francisco Bay Area and is helping position New York as a hub for innovation.

Background:

New York City is experiencing a boost in office activity and economic momentum as companies focused on artificial intelligence increasingly rely on human collaboration to thrive. Andrew Kimball, president and CEO of the New York City Economic Development Corporation (NYCEDC), highlighted the growing role of AI-focused businesses at the Reuters Momentum Finance conference in New York on Tuesday.

“The percentage of companies that identify as AI-focused continues to rise across all sectors,” Kimball said, noting that these companies are significantly influencing city life. Unlike traditional companies that allow some remote work, these organizations have employees in the office every day to encourage teamwork and innovation.

Kimball also addressed concerns about job displacement due to automation and AI. “There will certainly be some jobs lost and others augmented,” he said. “But the overall picture shows New York benefiting as a net winner from this technological shift.”

The trend mirrors developments that began in the San Francisco Bay Area following the launch of ChatGPT three years ago. For New York, this influx of AI-driven companies is translating into stronger demand for office space and a revival of street-level activity, as workers return to the city in greater numbers.

Kimball, appointed in February 2022 by Mayor Eric Adams, said he is committed to supporting the city’s growth, while the leadership under incoming Mayor Zohran Mamdani has not yet been decided.

As new technology businesses grow in New York, the city is becoming a hub for innovation, blending business growth with lively city life. More offices and people at work are helping New York’s economy and city life grow.