California’s Governor to Sign A.I. Order Aimed at Protecting Workers

California Governor Gavin Newsom will issue an executive order on Thursday to explore labor policy reforms aimed at mitigating job displacement caused by artificial intelligence. The order directs state agencies to collaborate with academics, labor groups, and AI industry representatives to develop strategies that incentivize companies to retain employees rather than replace them with AI technology. The initiative includes expanding job training programs, particularly for white-collar professions such as customer service, software development, marketing, and sales—roles identified as high-risk for AI-driven elimination. Newsom’s order also calls for examining universal basic capital, a system where residents receive stakes in assets like stocks or wealth funds to offset economic disruptions. Newsom’s executive order marks the first of its kind by a U.S. governor and reflects growing global concerns about AI’s impact on employment. Recent layoffs at major tech firms, including Meta’s 10% workforce reduction (8,000 employees) and similar cuts at Intel, Cisco, and Amazon, underscore the urgency of addressing AI-related job losses. Tech leaders, such as Anthropic’s Dario Amodei, have predicted that up to half of white-collar jobs could disappear within five years, though not all agree on the timeline. Governments worldwide are responding to AI-driven unemployment with varied approaches. China, facing a 17% youth unemployment rate, has seen courts rule in favor of workers displaced by AI. Meanwhile, countries like England, Japan, and South Korea are exploring universal basic income (UBI) as a potential solution. In the U.S., Democratic lawmakers have proposed pilot projects for UBI, while tech figures like Elon Musk and Sam Altman have endorsed the idea as a necessary response to AI-driven job losses. Newsom’s order emphasizes proactive policy development rather than immediate action, positioning California as a leader in addressing AI’s economic challenges. The move aligns with broader debates about how societies can adapt to technological disruptions while ensuring equitable outcomes for affected workers.