Quick Take

In an executive order, California Gov. Gavin Newsom called on state officials to study everything from job subsidies to stock compensation policies to mitigate tech-driven layoffs stemming from the use of artificial intelligence.

This story was originally published by CalMatters. Sign up for its newsletters.

Amid tech layoffs, anxiety around artificial intelligence, and a possible forthcoming run for president, Gov. Gavin Newsom signed an executive order Thursday that calls for state agencies to explore ways to mitigate job losses stemming from the use of  AI.

The order, among other things, requires a report on the impact of AI on the California labor market and ways to help displaced workers, including through severance policies and subsidized employment. 

It also calls for increased job training , stock compensation and cooperative business ownership for workers and a review of how unions are negotiating over AI.

Newsom previously signed executive orders last month and in 2023 simultaneously putting in place AI protections and encouraging state agencies to use the technology. 

The latest order comes a day after Facebook owner Meta laid off 8,000 workers, with CEO Mark Zuckerberg citing AI in a memo to staff after the cuts. It also comes two days after the California Senate passed the No Robo Bosses Act, which prevents businesses from using decisions made by AI and other automated systems as the sole reason a person gets fired or disciplined. Newsom vetoed a similar bill last fall. 

In February, AFL-CIO president Liz Shuler, members of the California Labor Federation and labor leaders in Democratic primary states pledged to pull support for a Newsom 2028 presidential campaign if he didn’t take steps to protect workers from artificial intelligence. Newsom’s veto of the predecessor of the No Robo Bosses Act was named as a reason for that pledge.

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