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Market analysis··2 min read

New York relies on in-house software teams rather than artificial intelligence

The New York City administration is pushing ahead with in-house developer teams to modernise administrative processes and approval procedures, but is eschewing artificial intelligence for the time being.

AI generatedNew York relies on in-house software teams rather than artificial intelligence – AI-generated illustrative image
New York relies on in-house software teams rather than artificial intelligence. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Under Mayor Zohran Mamdani, the New York City administration is charting new territory in modernising its municipal systems. Rather than commissioning costly external consultancies, the municipality is relying on dedicated in-house teams of engineers, product designers, and user researchers. These so-called Public Interest Technology Crews, or PIT Crews, are based at the city's Office of Technology and Innovation (OTI) and are intended to noticeably accelerate lengthy administrative procedures.

Just ten weeks after launching, the administration unveiled its first online portal, enabling citizens to easily submit complaints against businesses that make subscription cancellations difficult. At the same time, a regulation from the Department of Consumer and Worker Protection came into effect, stipulating fines of $525 for corresponding violations. Luke Farrell, deputy commissioner at the OTI, explained that the rapid rollout within a few weeks had averted procurement processes lasting several months and lowered barriers for citizens.

A break with costly past failures

The strategic shift in direction marks a deliberate departure from the initiatives of previous administrations. The LinkNYC network, initiated under Bill de Blasio, cost around $200 million; however, three-quarters of the installed units suffered from defects, while the operating consortium fell $69 million behind on payments. The MyCity portal developed under Eric Adams also swallowed $100 million, yet failed to meet key targets regarding the allocation of childcare vouchers.

Real estate companies as well as small commercial businesses could benefit directly from the new direction. Key focal points of the digitalisation strategy include the following areas:

  • —Accelerating and simplifying planning and approval procedures for affordable housing
  • —Standardising official application forms and reducing bureaucratic reporting requirements
  • —Reusable software architectures to connect municipal departments
  • —Optimising systems for the allocation of subsidised housing

Caution towards generative technology

Julie Samuels, executive director of the industry association Tech:NYC, emphasised that the success of modern administrative structures primarily hinges on an internal cultural shift. Noel Hidalgo, co-founder of BetaNYC, also highlighted that permanent software developers can respond far more agilely to shifting priorities than external consultants tied to rigid service contracts.

The internal working groups are deliberately eschewing the use of artificial intelligence for the time being. The mayor has repeatedly criticised the lack of binding federal regulations for this sector as well as the associated risks to jobs. The focus therefore remains for now on solid in-house development to pragmatically streamline approval procedures.

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