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California Gov. Gavin Newsom signed an executive order on Thursday directing state agencies to prepare workers, small businesses, and communities for potential economic disruption from artificial intelligence — the first such order issued by a U.S. governor.
Among its provisions, the order pulls together state agencies, labor experts, economists, universities, and industry leaders to develop new policies, gather data, and flag early signs of workforce disruption. Policy options under examination include severance standards, expanded unemployment insurance, retraining programs specifically targeting white-collar workers, worker ownership models, and what Newsom termed "universal basic capital" — a framework that would give every resident a share in assets like corporate stocks, bonds, or wealth funds.
"California has never sat back and watched as the future happened to us — and we won't start now," Newsom said in a statement. "This moment demands that we reimagine the entire system — how we work, how we govern, how we prepare people for the future."
The order also calls for a new dashboard tracking AI's impact across sectors, recommendations within 180 days on updating California's Worker Adjustment and Retraining Notification Act, and a single online platform to help Californians navigate government services and identify social benefits for which they may be eligible.
