California Gov. Gavin Newsom has signed an executive order directing state agencies to prepare workers, businesses and communities for potential disruption from artificial intelligence, as concerns grow over AI-driven layoffs and workforce changes across the tech industry.
“Today is just the first step as we rewrite policy and direction, creating a future of work that works for all,” Newsom said in a statement.
The order requires California agencies to study AI’s impact on the labor market, including disproportionate effects on certain demographic groups, and recommend updates to worker protection laws such as the state’s WARN Act.
It also calls for reviews of severance policies, worker retraining programs and unemployment support systems. The state’s Employment Development Department must launch a public dashboard within 90 days tracking AI’s impact on employment across sectors using unemployment insurance data.
In addition, the order directs agencies to explore worker ownership models, AI literacy programs and policies to ensure Californians share in productivity gains from AI adoption. California agencies will work with the University of California and Stanford University Institute for Human-Centered Artificial Intelligence on recommendations for AI projects that advance the public good.
California is home to 33 of the world’s top 50 private AI companies, according to the order. The move comes as AI-related layoffs and restructuring accelerate across the tech sector, including recent cuts at Meta and other Silicon Valley firms.
Newsom’s office described the action as a first-in-the-nation effort to address the economic fallout from AI adoption.