California governor orders a plan to cope with AI job upheaval

California Governor Gavin Newsom issued an executive order on Thursday directing state officials to develop a plan to mitigate job displacement from artificial intelligence. This move makes California the first US state to address AI-driven workforce changes, aiming to avoid sudden layoffs and workforce instability. The plan will involve collaboration between state agencies, experts, universities, and industry leaders to establish policies on severance standards, employment insurance, and worker retraining. Newsom emphasized the need to reimagine the employment system due to rapid AI advancements, stating that California will not 'sit back and watch as the future happens to us.' The initiative follows recent job cuts in the US technology sector, with over 52,000 jobs lost in the first three months of 2024, according to Challenger, Gray & Christmas. Meta, Facebook’s parent company, announced layoffs of 8,000 employees on Wednesday, citing AI as a factor in workforce reductions. Newsom criticized the current payroll tax system, arguing it subsidizes automation while taxing jobs. He also highlighted global debates about AI’s impact, including proposals from tech leaders like Elon Musk and Sam Altman for universal basic income to support displaced workers. The order reflects growing concerns that AI could automate complex tasks, affecting professions from trucking to law. Industry observers suggest some companies may use AI as an excuse for broader cost-cutting measures.