California is preparing for AI-driven job displacement. Governor Gavin Newsom today signed a first-of-its-kind executive order, directing state agencies to explore subsidies for companies that retain workers instead of replacing them with autonomous machines.
The order also calls for expanded retraining programs, especially for roles in customer service, sales, and software development. Additionally, Newsom ordered a feasibility study of universal basic income and the possibility of giving every Californian stakes in corporate stocks, bonds, and wealth funds.
Newsom emphasized that traditional safety nets like unemployment insurance are insufficient when entire job categories face extinction.
"California has never sat back and watched as the future happened to us - and we won't start now," Newsom said. "We must reimagine the entire system - how we work, how we govern, how we prepare people for the future."
The executive order responds to growing anxiety over AI. This week, Meta laid off 10% of its workforce-about 8,000 people-as part of a broader strategy to focus on AI. Intel, Amazon, and Cisco have also shed thousands of workers this year, citing efficiency gains from AI.
Antthropic CEO Dario Amodei has warned that up to half of all white-collar jobs could disappear within five years.
The U.K., Japan, and South Korea are also studying universal basic income. Tesla CEO Elon Musk is a vocal proponent, arguing that AI-driven productivity will generate surplus government revenue to distribute to displaced workers.
This order is the latest in California's AI policy leadership, following landmark AI safety legislation and previous executive actions. The move contrasts with the federal government's largely hands-off approach, though recent concerns over Anthropic's advanced AI model, Mythos, may prompt new White House mandates.