Remote Work and Thriving Cities

Major American cities face a pivotal moment as remote and hybrid work and the rapid spread of generative AI reshape where and how people work. Since the pandemic, many workers have moved from downtowns to suburbs or smaller communities, reducing foot traffic and office activity—especially in finance- and tech-heavy hubs like San Francisco—and straining tax revenues that fund schools, housing assistance, and other vital services. Our research treats these changes as enduring. 

Using surveys, administrative and satellite data, and randomized controlled trials, paired with direct engagement of public officials, community leaders, firms, and workers, we measure how new work arrangements affect productivity, retention, collaboration, innovation, fertility, pollution, commuting, and employee well-being, and how those effects ripple through housing demand, commercial real estate, transportation, and municipal finances.

A second strand of our team’s research measures how firms adopt and use AI and what it means for output, quality, decision-making, productivity, and jobs. AI and work from home (WFH) are the two forces most impacting the labor force, and in many ways are connected. By rapidly promoting the digitization of work in 2020, WFH laid the ground for the rapid adoption of AI.

A team spanning the Federal Reserve Bank of Atlanta, Bank of England, Bundesbank, Instituto Tecnológico Autónomo de México (ITAM), and Macquarie University is running a multi-country survey in the United States, United Kingdom, Germany, and Australia—expanding to South Korea, South Africa, Canada, and Mexico. The survey is focused on chief financial officers, who offer a strong vantage point on technology adoption, costs, employment, and productivity within their firms. More than 10,000 CFOs have been surveyed to date. 

Our research is also focused on how AI and flexible work reinforce each other: AI can make distributed teams more effective, while hybrid work can accelerate AI adoption. The end goal is practical, evidence-based guidance for those who need it. We aim to help employers design scalable models of hybrid work and AI deployment that raise productivity without sacrificing collaboration, inclusion, or well-being, and help policymakers adapt tax structures, zoning, and public-service funding so neighborhoods are supported and city centers remain economically dynamic.