California Governor Newsom Signs Executive Order to Prepare Workforce for AI Disruption

Summary

Governor Gavin Newsom has signed a first-in-the-nation executive order 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 policies, gather data, and identify early warning signs of workforce disruption while ensuring workers benefit from AI-driven productivity gains.

The executive 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, and expanded workforce training. It also calls for stronger tracking of hiring and payroll trends to help California respond faster to potential layoffs and economic disruption.

This move comes as California has positioned itself as a leader in AI governance, having previously enacted the Transparency in Frontier Technology Act and multiple protections regarding AI safety, deepfakes, and digital likenesses. Governor Newsom emphasized that California will not passively observe the future but instead actively shape policies to ensure all Californians—not just tech companies—benefit from the wealth-generating opportunities of the AI economy.

• This builds on California's existing AI safety framework, including the Transparency in Frontier Technology Act and protections against AI-generated deepfakes