Comptroller Mark Levine Issues First-of-Its-Kind Report on AI’s Potential Impact on the New York City Economy and Finances
Publish Date: 2026-05-21 09:02:00
Source Domain: comptroller.nyc.gov
May 21, 2026
Urges Increasing the Rainy Day Fund to 16% of Tax Revenues as Possible Economic Shocks and Loss of Revenue Threaten Vital City Services
New York, NY — New York City Comptroller Mark Levine today issued a new report that examines the possible impacts artificial intelligence (AI) could have on New York City’s economy, providing the first local assessment of how this rapidly advancing technology could profoundly impact jobs, wages, tax revenue, and key industries. Comptroller Levine said the risk posed by AI in the next few years requires the City to bring the Revenue Stabilization Fund (the “rainy day fund”) to 16% of tax revenues. Currently the rainy day fund and the Retiree Health Benefit Trust hold 8.5% of projected Fiscal Year 2026 tax revenues.
“There is no city in America more exposed to both the promise and peril of artificial intelligence than New York City. AI is already having an impact on our economy and we cannot afford to sleepwalk into this new age,” said New York City Comptroller Mark Levine. “The enormous uncertainty that AI presents to our local economy is no excuse to not prepare. My commitment as comptroller is to help New York City understand and shape the most dramatic technological revolution in our lifetimes.”
The report maps a range of scenarios that illustrate the economically transformative potential of AI’s adoption. The scenarios are based on Moody’s Analytics reports and on original work. The first, with a 35% probability of occurring, is an AI-empowered economy that would boost productivity with limited economic disruption. The remaining scenarios are AI falls flat (25%), which would be marked by the AI investment boom fizzling out and markets retreating; job replacement (20%) where automation displaces…
