California Governor Signs Executive Order on AI Job Losses

State officials received an executive order directing them to examine how artificial intelligence affects employment and to identify measures that could assist workers facing job losses. The order requires agencies to review the impact of AI on the California labor market and to consider policies including severance arrangements, subsidized employment, job training, stock compensation, and cooperative ownership structures.

It also calls for an assessment of how unions are addressing AI in contract negotiations.

Officials had issued earlier executive orders last month and in 2023 that established AI protections while directing agencies to adopt the technology. The new order was issued one day after a technology company announced 8,000 layoffs, with its leadership attributing the reductions to AI.

Two days earlier, the state Senate approved legislation that would bar businesses from relying solely on AI or automated systems when making termination or disciplinary decisions.

A labor organization had previously indicated it would withhold support for a potential presidential campaign unless steps were taken to protect workers from AI-related displacement. The group cited a prior veto of similar legislation as one factor in its position.