California Governor Gavin Newsom signed a first-in-the-nation executive order designed to prepare workers, businesses, and communities for the economic disruption expected from artificial intelligence (AI). The order mobilizes state agencies, labor leaders, economists, universities, and industry experts to study AI’s impact on the workforce while developing policies that support workers through economic transition. Key areas of focus include expanded workforce training, severance protections, employment insurance modernization, worker ownership models, and strategies to ensure Californians — not just major technology companies — benefit from AI-driven productivity and wealth creation.

The executive order also establishes new systems for tracking AI-related workforce disruption, including an AI impact dashboard, recommendations to modernize California’s WARN Act, and improved reporting on how technology influences hiring and payroll trends. In addition, California plans to strengthen small business support, expand AI education and job training opportunities, and engage the public through statewide participation initiatives designed to shape future AI policy. The order reflects California’s broader strategy of balancing innovation, economic growth, worker protections, and responsible AI governance as the technology rapidly transforms industries and the future of work.