Gov. Newsom Signs Executive Order to Prepare Workers and Businesses for Potential AI Disruption

SACRAMENTO — Gov. Gavin Newsom May 21 issued an executive order directing California to prepare workers, small businesses, and communities for the economic disruption that artificial intelligence will bring to the workforce. The order mobilizes state agencies, labor experts, economists, universities, and industry leaders to develop new policies, gather data, and identify early warning signs of workforce disruption — while ensuring workers share in the gains created by AI-driven productivity.

The order directs the state to explore policies including severance standards, employment insurance and transition support for displaced workers, worker ownership models, universal basic capital concepts, expanded workforce training, and stronger tracking of hiring and payroll trends to help California respond faster to potential layoffs and economic disruption. Read the executive order here.

Gov. Newsom announced this month the first-ever statewide deliberative democracy effort with Engaged California to assess the impacts of AI on Californians. All Californians are invited to participate in this innovative program, which provides every resident a seat at the table in shaping state policy on AI. The results of this engagement will help inform all of the activities directed by the EO. Sign up at engaged.ca.gov/ai.