California Governor Gavin Newsom has signed an executive order directing state agencies to prepare workers, businesses, and communities for the economic impact of artificial intelligence as adoption accelerates across industries.
The order brings together government agencies, labor organizations, economists, universities, and industry leaders to develop policies, improve workforce data collection, and identify early warning signs of AI-related job disruption. The initiative is intended to help ensure workers benefit from productivity gains generated by AI.
Among the measures being explored are workforce transition support, employment insurance programs, severance standards, worker ownership models, expanded job training, and stronger monitoring of labor market trends. State agencies have also been tasked with evaluating how AI is affecting hiring, payrolls, and employment across sectors.
The executive order calls for a new AI workforce impact dashboard, recommendations for updates to California’s WARN Act within 180 days, and the creation of an AI playbook to modernize job training programs and support displaced workers.