CA eyes AI regulation as Newsom orders new workforce protections amid job shifts, mass layoffs

California is taking steps to lead on artificial intelligence regulation as experts warn rapid AI disruption will affect the workforce. Government action is framed as necessary to ease the transition to an AI-driven economy. Layoffs tied to AI changes are already occurring in the tech sector, including Meta sending notices to about 8,000 employees. The uncertainty remains whether AI will ultimately reduce or increase total jobs, but employment disruption is expected. Jobs that exist today may be replaced by AI, while new jobs may emerge that are not yet identifiable. Gov. Gavin Newsom signed an executive order to prepare the state, including a new dashboard to track AI’s impact on jobs, potential changes to layoff laws, and expanded worker protections and safety rules.

"“Government has a role to play in trying to ease the transition to the AI economy. It seems to be coming fast and furious,” said Stanford Law professor Nate Persily, a legal scholar and AI policy expert. “Politicians around the country are paying attention to the implications of AI for the economy and, in particular, employment. And so it's not surprising that California, which is home to the nation's AI industry, is trying to be a leader in addressing the labor impacts of AI.”"

"“We ain't seen nothing yet, because now it's the bluecollar worker that sounds a lot like 25yearold whitecollar workers that I see in San Francisco who are wondering why they're not getting a call back on a job interview," Newsom said. “I think the jury is still out as to whether AI is on net going to cost jobs or create more jobs,” Persily said. “But we know that it's going to disrupt the economy and that it's going to change employment in the future.”"

"“There are jobs that exist today that will be replaced by AI, and there are jobs that we can't even think of that will be created by AI.”"

"“On Thursday, Newsom signed an executive order aimed at preparing the state for an AIdriven economy. The order calls for a new state dashboard to track AI's impact on jobs, explores potential changes to layoff laws, and proposes expanded worker protections and safety rules.”"

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