The 1970s marked a significant shift towards industrial decline in the US, with the collapse of manufacturing industries like steel and automobiles. Today, a new threat is emerging: generative A.I., which could lead to widespread job displacement, particularly in entry-level and service sector roles.
Recent research by the Brookings Institution warns that cities like San Francisco, New York, and Washington are at risk of significant job disruption due to the rise of A.I. In San Jose, for example, 43% of workers could see their tasks transformed by A.I., posing a threat not just to individual workers but also to the entire city.
The lesson from history is that spotting early warning signs is crucial for adaptation and survival. In the 1960s, cities like Pittsburgh and Detroit failed to recognize the impending doom of new technology, leading to devastating consequences.
However, some cities have taken steps in the right direction. Boston, for instance, has reinvented itself repeatedly, from a maritime center to a manufacturing hub and finally to a tech economy and finance powerhouse. The key factor in this transformation was young talent and innovation, making education the engine of growth.
In today’s A.I.-driven world, cities can avoid propping up dying industries by investing in amenities that attract and retain talented residents, such as public spaces, fast and affordable transit, top-tier schools, museums, and theaters. By fostering competition and allowing workers to move from job to job, governments can create a more vibrant and resilient economy.
The economist Enrico Moretti finds that high-skilled tech or professional roles sustain around five local jobs for every one manufacturing job, making them a crucial factor in local prosperity. If cities fail to adapt to the A.I. revolution, they risk repeating the decline of Pittsburgh and Detroit. But by embracing A.I. as a catalyst for new industries, rather than just an efficiency tool, cities can change their fate and create a more prosperous future.
Source: https://www.nytimes.com/2025/08/19/opinion/ai-job-loss-deindustrialization.html