California Governor Gavin Newsom has issued a new executive order directing state agencies to devise strategies aimed at reducing the impact of artificial intelligence on employment. This move comes in response to recent mass layoffs by major tech companies citing AI advancements as a factor, alongside growing concerns from labor unions.
The order tasks agencies with exploring a range of protective measures, including enhanced severance policies, subsidized employment programs, and expanded job training opportunities to assist displaced workers. It also mandates a comprehensive report on AI’s effects on California’s labor market, highlighting the state’s intention to better understand and address the challenges AI presents to workers.
Additionally, the directive calls for investigation into innovations such as stock compensation and cooperative business ownership models as tools for worker empowerment, while examining how labor unions are negotiating around AI-related workplace changes. This comprehensive approach reflects Newsom’s attempt to balance AI’s adoption in government operations with safeguards for affected employees.
The executive order follows high-profile layoffs by tech giants including Meta, Cisco, and Block, where AI was specifically cited as influencing workforce reductions. It arrives just days after the California Senate passed the No Robo Bosses Act, legislation designed to prevent businesses from relying solely on automated or AI-driven decisions for firing or disciplining employees. Newsom, who had vetoed a previous version of this bill, now faces renewed calls from labor leaders to adopt stronger worker protections.
Labor advocates, including California Labor Federation president Lorena Gonzalez, welcomed Newsom’s acknowledgment of AI’s risks but criticized the measures as insufficient. They emphasize that simply studying the AI impact is inadequate without immediate and enforceable action to prevent widespread job losses.
This development contrasts with the federal government’s current stance. Former President Trump recently blocked an executive order aimed at preemptive AI model testing and has opposed states regulating AI, underscoring a stark divergence in policy approaches between California and the federal administration.