New York official warns AI could threaten thousands of jobs this year

New York City's top financial official warned on Thursday that artificial intelligence could displace thousands of workers in the US' largest city as early as this year, while noting that its long-term impact remains uncertain.

New York City Comptroller Mark Levin said AI is set to bring a "radical transformation" to the global financial hub, affecting wages, pension payments, and Wall Street profits.

Levin, a former Democratic New York City Council member, outlined both optimistic and negative scenarios for AI, ranging from a productivity surge to widespread job losses.

He said city policymakers will play a key role in shaping AI's impact and urged immediate measures, including building a multibillion-dollar financial reserve to guard against potential economic fallout.

"There is no city in America-and perhaps none on earth-more exposed to both the promise and peril of artificial intelligence than New York City. And there are few places with more power to steer the transformation ahead," Levin said.

Levin said New York City is home to hundreds of companies competing to become a hub for applied AI, while nearly 1 million office workers in Manhattan face potential disruption from the technology, reflecting challenges likely to emerge across US cities.