Sacramento, California — California Gov. Gavin Newsom signed an executive order Thursday directing state agencies to prepare for possible job displacement caused by artificial intelligence, as the state tries to balance tech innovation with worker protections.
The order calls for agencies to study policies that could help workers affected by AI-driven disruption, including compensation options, temporary subsidized employment, workforce training, and other support programs. Newsom said California “won’t sit back” as AI reshapes the economy and argued the state must rethink how workers are prepared for the future.
The move comes as economists, labor advocates, and tech leaders remain divided over how quickly AI will affect employment. Anthropic CEO Dario Amodei has warned that AI could eliminate many entry-level white-collar jobs, while OpenAI CEO Sam Altman has argued that long-term “jobs doomerism” may be wrong, even as major disruption occurs.
California has become a key battleground for AI policy because many leading AI companies are based in the state. Newsom previously signed legislation requiring certain AI companies to disclose safety information about advanced models.
The order does not ban AI or impose immediate penalties on companies. Instead, it starts a state review process focused on worker aid, retraining, and early warning signs of job displacement.
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