New York City Council 
Artificial Intelligence Legislation 

Thank you, Speaker Menin and members of the City Council, for the opportunity to testify on artificial intelligence (AI) legislation. The Partnership for New York City mobilizes private sector resources and expertise to advance New York City’s standing as a global center of economic opportunity, upward mobility, and innovation. We are a nonprofit organization whose members are preeminent business leaders and companies that support nearly 1 million jobs in New York City and deliver approximately $370 billion in economic output. 

We appreciate the Council's interest in AI, and we share your goal of ensuring that this technology benefits the people of New York City. Our members are developing, deploying, and learning to use AI every day, and they want it to be used responsibly. AI is a rapidly evolving technology that has become a significant part of the city’s economy. Its impact is felt across industries. Regulation of AI by the city has the potential to add costs, uncertainty, and regulatory burden to city businesses as well as conflict with future state and federal rules. We hope the Council will move slowly and exercise caution on any local legislation on AI. 

Since the legislation under consideration at this hearing has been available for only a short time, our members have not yet been able to review the bills in depth. We will share more detailed feedback about specific bills as it becomes available. 

AI is evolving quickly 

The issues surrounding AI are complex, and the technology is changing faster than almost any we have seen. Policy written today must hold up against a field that will likely look different every few months. The local job market shows how quickly this is happening. Just since 2022, New York City employers have added 38 new specialized AI-related skills to entry-level job postings and dropped 30 others. Skills that were considered specialized just last year are already baseline expectations. Legislation that locks in specific technical requirements risks becoming outdated before it takes effect. A cautious, evidence-based approach is far more likely to produce policy that lasts. 

AI is a growing part of New York City's economy, and NYC should be open for business 

Any discussion of AI regulation should begin with the recognition that AI is already a significant and growing part of New York City's economic base. AI companies leased more than 2.2 million square feet of office space in the city in the first half of 2026, more than double their total for all of 2025. New York City AI startups raised a record $16.7 billion in venture capital in 2025, second only to the Bay Area. 

That growth is not guaranteed. New York ranks ninth globally in Counterpoint Research's AI City Index, behind Singapore, Seoul, and San Francisco. Each of those cities is actively competing for the same investment, talent, and headquarters decisions, and each has prioritized partnership and investment over restrictive regulation. 

New York City has too often been seen as a difficult place to do business, and how the city approaches AI will either reinforce or counter that perception. The question before the Council is whether new rules will create uncertainty or costs that make New York less attractive than the cities it competes with. 

Local AI regulation reaches far beyond technology companies 

AI regulation will impact companies beyond those that build AI. It will affect banks, law firms, retailers, and businesses of every size and sector that use these tools in their daily operations. 

Adoption is spreading quickly across industries. In August 2026, 61 percent of service firms in the New York metro area reported using AI in their regular workflows, up from 25 percent in 2024. Finance and insurance, industries that contributed almost half of New York State's annualized GDP growth in the second quarter of 2026, are among the fastest adopters of AI. In 2025, only 5 percent of job postings in these industries mentioned AI; through September 2026, more than 16 percent did. Local legislation that raises the cost or uncertainty of using AI will be felt directly by the industries that drive our economy. 

The broader regulatory landscape is still taking shape 

AI products and services do not stop at city limits; most serve users everywhere. A city-specific regime risks imposing obligations that conflict with state and federal requirements that are still being developed. It also invites other localities to adopt their own versions, leaving businesses to navigate a patchwork of inconsistent rules. We encourage the Council to coordinate closely with state and federal policymakers so that any local action complements, rather than collides with, the frameworks emerging at those levels. 

Conclusion 

New York City has an opportunity to be a global leader in AI, and getting the policy right matters. We urge the Council to proceed carefully, ground its decisions in evidence, consider the impact on businesses across every sector, and align its approach with the State and federal frameworks now taking shape. 

The Partnership stands ready to work with the Council to develop thoughtful approaches that protect New Yorkers while keeping the city competitive. 

Thank you.