The City has become AI central, seeing a surge in venture investment. But tech employment has slumped and isn’t yet recovering
For Real Estate, this trend could reduce demand for office space as companies require fewer employees. Government revenues could be affected by decreased income tax collection due to higher unemployment in the tech sector, requiring adjustments to city budgets and potentially affecting services.
Operational impact: Businesses must proactively assess the potential for AI-driven automation within their workflows to remain competitive. This includes identifying tasks suitable for automation, retraining employees for higher-value roles, and adapting organizational structures to leverage AI's capabilities. Companies that don't will be at a distinct cost disadvantage.