Governor Issues Executive Order on AI and the Workforce

Last week, Governor Newsom issued an executive order focused on preparing California’s workforce and economy for the growing impact of artificial intelligence (AI). The order recognizes both the opportunities and risks of AI and emphasizes that the state must take proactive steps to manage and mitigate potential disruptions to the workforce, education systems, and economy. It calls for the ongoing study of AI’s impacts and use of information to guide future policies that protect workers, the public, and the economy.  

At its core, the executive order directs various state agencies to study, anticipate, and respond to AI-driven changes in the labor market, building a framework for responding to potential workforce disruption. Specifically, the order directs state agencies to:   

• Track AI’s Impact on Jobs­—Improve data collection and analysis on how AI is affecting employment. This includes creating tools such as a statewide dashboard to monitor changes across sectors and identify early warning signs of job displacement. 
• Research and Forecast Potential Workforce Impacts—Compile research on AI’s potential workforce impacts, including which occupations and demographic groups may be most affected. The goal is to provide a clearer, evidence-based picture of risks and opportunities.  
• Recommend Changes to CalWARN Act—Labor and Workforce Development Agency is tasked with recommending possible changes, including early warning on emerging industry trends. This requirement is notable, as pending legislation would impose a more burdensome version of the CalWARN Act on counties and other public agencies for AI-caused displacement of jobs.  
• Review Collective Bargaining Processes—Evaluate how CBAs are already accounting for adoption of AI and other technologies.  
• Provide Technical Assistance to Local Workforce Development Boards—Include training on how to use Workforce Innovation and Opportunity Act funds AI literacy training.  
• Explore New Economic and Safety Net Policies—Explore potential structural changes to how workers earn income, build wealth, and remain economically secure in an AI-driven economy. This includes exploring worker ownership models, enhanced unemployment protections, and other mechanisms to ensure workers share in the economic gains from AI-driven productivity, as well as strengthening public safety net programs including CalWORKS. 
• Support Businesses and Communities—Consider impacts on small businesses and local economies and encourage policies that support employers who retain workers and invest in workforce stability during technological change. 

CSAC is closely monitoring how the EO could impact pending legislation or compel counties to share data.  

For additional information, please contact Eric Lawyer at elawyer@counties.org, Emma Jungwirth at ejungwirth@counties.org, and Julissa Ceja Cardenas at jcejacardenas@counties.org.