Governor Newsom signs first-of-its-kind executive order to prepare workers and businesses for potential AI disruption

 Governor Gavin Newsom (D-CA) issued an executive order (EXECUTIVE ORDER N-6-26) directing California to prepare workers, small businesses, and communities for the economic disruption that artificial intelligence will bring to the workforce. The order mobilizes state agencies, labor experts, economists, universities, and industry leaders to develop new policies, gather data, and identify early warning signs of workforce disruption—while ensuring workers share in the gains created by AI-driven productivity. The order directs the state to explore policies including severance standards, employment insurance and transition support for displaced workers, worker ownership models, universal basic capital concepts, expanded workforce training, and stronger tracking of hiring and payroll trends to help California respond faster to potential layoffs and economic disruption. The order directs the various state agencies to:

• Empower workers and help them share in the gains made from AI adoptions
• Track and understand the impact of AI on the workforce, filling the gaps of knowledge and providing clear and concrete data with
• Respond to possible employment and workforce disruption by
• Develop stronger public policy and support programs for using AI to advance the public good