AI companies leased more than 2.2 million square feet in office space in the first half of the year — more than twice the sector’s total in 2025

Partnership analysis finds high demand for AI skills, decrease in entry-level job postings across white-collar industries

Artificial intelligence (AI) companies are already transforming New York’s economic landscape, from commercial office leasing to entry-level job growth, according to a new report from the Partnership for New York City. AI companies leased more than 2.2 million square feet of office space in the first half of 2026 — more than double the sector’s total for all of 2025 — as investment and startup activity surged. At the same time, white-collar occupations most susceptible to AI automation, such as design, media and writing; customer and client support; and clerical and administrative work have seen declining entry-level hiring rates and changing skill requirements.

The findings provide an early analysis of how AI adoption is already reshaping New York City’s economy. New York’s competitive advantage has historically been its ability to attract ambitious young professionals. Declining opportunities for entry-level talent and shifts in skill demand from top employers driven by AI could make the city less accessible to young talent, particularly as housing, utilities, and transportation costs continue to rise.

The report argues that New York City is emerging as one of the clearest test cases for understanding AI's real-world economic impact. Although New York City ranks ninth globally in Counterpoint Research’s AI City Index, its concentration of AI investment, office leasing activity, and white-collar employment makes it one of the clearest places to observe AI’s economic and workforce impacts. The report also examines how other AI-forward cities are responding and concludes that workforce competitiveness, including preserving viable entry points for young workers, must become a central component of New York’s AI strategy.

Key findings in the report include:

• AI companies leased more than 2.2 million square feet of office space in the first half of 2026, more than double their 2025 total, driven in part by 13 existing firms that added a combined 1.2 million square feet to their commercial office footprint.
  
  

• AI startups raised a record $16.7 billion in venture capital in 2025, the city’s strongest year on record, and second only to the Bay Area.
  
  

• Despite that growth, employment through August 2026 increased by just 0.6% in Financial Services and 0.04% in Professional and Business Services, while declining nearly 2% in the Information sector.
  
  

• Entry-level job postings that mention AI skills have increased 55% since 2022, even as the overall number of entry-level opportunities has declined.
  
  

• Since ChatGPT’s release in 2022, annual entry-level job postings have declined by 40.6% in occupations related to design, media and writing; 34.4% in customer and client support; 30.5% in clerical and administrative work; 26.8% in business management and operations; and 23.4% in finance. Each of these occupational groups has more than 50% AI exposure, measured by the share of an occupation’s skills susceptible to AI augmentation.
  
  

• Employers are increasingly prioritizing workers who can apply, deploy, and supervise AI systems, reflecting changing skill demands across white-collar occupations. 

In its report, the Partnership urges New York City to consider an AI strategy that emphasizes understanding how AI is changing occupations, skill requirements, and entry-level hiring. It recommends pairing AI investment and ecosystem development with a clearer workforce strategy focused on opportunity, skills, and pathways into work. Maintaining accessible entry points into the workforce will be essential to preserving New York’s ability to attract young talent, especially while a rising cost of living makes it difficult to build a life in the city.

“Artificial intelligence is already reshaping New York’s economy, bringing significant new investment and demand for commercial real estate while fundamentally changing what employers need from their workforce,” said Steven Fulop, President and CEO of the Partnership for New York City. “New York has an opportunity to lead in this next era of innovation, but our success cannot be measured by investment alone. We also need to ensure that there is still a place for young people in our economy and that they can build rewarding careers here. That means preparing New Yorkers with the skills employers need and creating clear pathways to the high-growth jobs of the future.”

The report draws on Lightcast job posting data, federal employment data, a Stanford-developed AI exposure index and commercial real estate and investment data.

The full report is available at pfnyc.org.