NYC comptroller urges rainy-day fund to offset potential AI fallout on city's economy

City Comptroller Mark Levine urges lawmakers to create a rainy-day fund to protect New Yorkers if artificial intelligence triggers an economic downturn. A report says AI could reshape the city’s economy in both negative and positive ways, making preparation for potential harm critical. Levine calls for setting aside 16% of annual tax revenue, including funds drawn in part from existing rental assistance programs and education budgets, and says this level would be enough to offset a typical recession. He links the urgency to growing public concern and anxiety about job replacement and economic instability. The report outlines multiple AI scenarios, including downturn, growth, and an “AI-Empowered Economy” with gradual productivity gains and limited workforce disruption.

"Levine called for lawmakers to set aside 16% of annual tax revenue, drawn in part from existing rental assistance programs and education budgets. He said that would be enough to offset a "typical recession." "People feel paralyzed," he said. "And I am pointing to the one thing that should be beyond debate.""

"The report released Thursday stated that AI could reshape the city's economy in different ways, negative and positive, and that it is critical to prepare for the possibility of economic damage. Levine said the technology could cause anxiety about job replacement, including office jobs in New York City, and could lead to a potential recession if an investment boom turns into a bust."

"The report outlined several scenarios for ways AI could affect New York's economy. One included a possible economic downturn. Another scenario foresees possible economic growth. The most likely economic scenario, according to the report, is an "AI-Empowered Economy" in which productivity rises gradually with "limited disruption" to the workforce."

""Three years ago, it was hard to get anyone to care in government," Levine said at a press conference, referring to the changes anticipated due to increased use of AI. "They've started to care." "People feel paralyzed," he said. "And I am pointing to the one thing that should be beyond debate.""

Read at Gothamist