What is booming, and how big is it
New York's AI moment is showing up on leases and in term sheets. On the capital side, AI-focused startups pulled in a record $16.7 billion in venture money in 2025, with only the San Francisco Bay Area attracting more. The Partnership for New York City, which brings together over 300 business leaders spanning banking, media investment, real estate and law, is set to publish the report Friday.
Why early-career workers are feeling squeezed
The hot growth story is not translating to easy entry ramps. The city added 38,000 private-sector jobs last year, roughly half the increase from the year before, and hiring has tilted toward experienced candidates. Economists point to multiple culprits, including the training challenge that comes with remote work. At the same time, entry-level job ads that ask for AI skills climbed 55%.
Shorter leases, longer-term questions
"You could have economic disparity become much worse if trends continue, where you can't find entry level jobs and housing," said Steve Fulop, the group's chief executive. "If you play that trend out over time you see that K-shaped economy getting much worse on a local level." He added that AI firms are signing for shorter terms than typical tenants and noted, "They don't necessarily have the jobs here yet." The numbers land as New York debates the broader tradeoff: will AI kick off a new growth cycle or undercut the white-collar roles that have long powered the city?
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What comes next for policy and your wallet
City leaders are stepping in. Next week, the City Council plans to convene a hearing that includes delegates from several of the biggest AI companies to weigh possible guardrails in light of safety concerns. The Partnership's analysis also arrives after New York City Comptroller Mark Levine warned that the AI-fueled stock rally poses a "serious vulnerability" for the city if valuations tumble.
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