California to explore possible subsidies for companies that don’t replace workers with AI
California is trying to prepare itself for artificial intelligence job disruption ahead of time. Governor Gavin Newsom today ordered state officials to begin exploring a massive overhaul of its labor policies in an effort to stave off the prospect of mass unemployment due to AI.
The executive order is the first of its kind signed by any U.S. official, and orders state agencies to collaborate with labor groups, academics and the AI industry to look at possible subsidies for companies that retain workers instead of replacing them with autonomous machines.
Newsom (pictured) also wants to see expanded retraining programs, especially for workers in areas such as customer service, market and sales and software development roles, which are forecast to be among the hardest hit by AI automation. In addition, the governor ordered a study into the feasibility of universal basic income, as well as the possibility of every Californian resident being given stakes in assets such as corporate stocks, bonds and wealth funds.
According to Newsome, things like unemployment insurance and redundancy pay increases are not enough to make up for the enormous labor market disruption AI is expected to create. Not when entire job categories are facing extinction.
