Empire AI Consortium to Boost New York's Economy by Billions

New York Governor Kathy Hochul has announced a historic agreement with the Legislature to establish Empire AI, a first-of-its-kind consortium aimed at securing New York's place at the forefront of artificial intelligence (AI) research. The consortium will leverage a $275 million state investment to create a state-of-the-art AI computing center on the University at Buffalo's campus.

Why this matters: The development of AI has far-reaching implications for the economy, job market, and daily life, making it essential for governments to invest in AI research and development to stay competitive. As AI continues to transform industries, initiatives like Empire AI will play a crucial role in shaping the future of technology and its impact on society.

The Empire AI consortium will include seven New York-based founding institutions: Columbia University, Cornell University, New York University, Rensselaer Polytechnic Institute, the State University of New York, the City University of New York, and the Flatiron Institute. The initiative will be funded by over $400 million in public and private investment, including a $250 million State capital grant investment and $25 million over 10 years in SUNY funding.

Governor Hochul emphasized the significance of the initiative, stating,"Whoever dominates the AI industry will dominate the next chapter of history, and we want New York to win the race for the future. "The Empire AI consortium aims to bridge the gap in access to computing resources, which are increasingly concentrated in the hands of large technology companies, and accelerate the development of AI centered in public interest for New York State.

The project will also receive more than $125 million from the founding institutions and other private partners, including the Simons Foundation and the Secunda Family Foundation. The Empire AI consortium is expected to drive job growth, launch new companies and products, and transform the way New Yorkers live their lives for the better. The initiative will also help educational institutions incubate AI-focused technology startups of the future, driving job growth and economic development in the state.

A recent study by Accenture, presented at tech:nyc, estimates that generative AI can unlock $320 billion in additional economic value for the state of New York over the next 15 years. The study suggests that nearly two-thirds (63%) of work hours in NYC could be augmented or automated by generative AI, with the banking sector potentially seeing an impact of up to 71%. 92% of NY executives plan to recruit new AI talent in the next three years, with AI jobs in NYC increasing by 39% in the last year.

Governor Hochul's commitment to advancing New York's leadership in artificial intelligence builds on her broader agenda to expand cutting-edge technology development in the Empire State. The governor has also announced initiatives to drive semiconductor research, development, and manufacturing in New York State, and has fueled the growth of the sustainability, green technology, and energy storage economies in the state.

The US leads the world in AI private investment, with $47.4 billion invested in 2022, followed by China with $13.4 billion. However, China is deploying AI much quicker than the US, with 2021 seeing more industrial robots installed in China than the rest of the world combined. Experts emphasize that the US government needs to increase R&D funding for AI to overcome China's data advantage and take concrete steps to maintain its lead in AI development, including education funding and skills training for the AI future.

The Empire AI consortium represents a significant milestone in New York's efforts to harness the transformative power of artificial intelligence. By bringing together leading academic institutions, industry partners, and government support, the initiative aims to foster innovation, drive economic growth, and position New York as a global leader in AI research and development. As the AI revolution unfolds, the Empire AI consortium will play a crucial role in shaping the future of technology and its impact on society.

Key Takeaways

• New York Governor Kathy Hochul announces Empire AI, a $400M initiative to establish NY as a global AI leader.
• Empire AI will create a state-of-the-art AI computing center at University at Buffalo with $275M state investment.
• 7 NY-based institutions will participate, including Columbia, Cornell, and NYU, with $125M in private funding.
• Initiative aims to drive job growth, launch new companies, and transform NY lives with AI centered in public interest.
• Empire AI expected to unlock $320B in economic value for NY over 15 years, with 63% of work hours potentially augmented by AI.