Thursday California's governor issued an executive order "directing state agencies to prepare workers and businesses for AI-driven workforce disruption," reports San Francisco's KQED. In a statement the governor said "This moment demands that we reimagine the entire system — how we work, how we govern, how we prepare people for the future."
The order mandates agencies to explore a range of policy options, including severance standards, expanded unemployment insurance, job retraining programs aimed specifically at white-collar workers, worker ownership models and a concept the governor called "universal basic capital," giving all residents a stake in assets such as corporate stocks, bonds or wealth funds...
Tom Kemp, executive director of the California Privacy Protection Agency, applauded the fact that the order named data privacy as a consumer protection concern and highlighted the CPPA's automated decision-making technology regulations, which he called "the nation's most comprehensive." Others are more skeptical. "Catastrophic job loss from AI is not inevitable, it's a political choice," Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO, wrote in a statement. However, Gonzalez noted one area of genuine agreement: the order's emphasis on collective bargaining as a tool for protecting workers from AI displacement...
According to Stanford HAI's 2026 AI Index, software developers ages 22 to 25 are among those most likely to see their skills made redundant earliest. This year, U.S. employment fell nearly 20% from 2024, even as headcount for older developers continued to grow. Following the job cuts announced at Meta, a union of Alphabet workers in the U.S. and Canada released a statement that suggests Silicon Valley's own labor force may seek to organize... "It's undeniable that our whole industry is being transformed by the corporate push to adopt new AI tools," [Alphabet Workers Union-CWA Local 9009 said in a statement]. "It's hard not to feel anxiety and fear when we can see more and more tech companies cutting huge portions of their workforce both in anticipation of replacing them with AI, and to fund their multi-billion-dollar bets on AI as the future of the industry..."
In February, AFL-CIO President Liz Shuler and Gonzalez delivered what amounted to an ultimatum to Newsom: regulate AI or lose labor's support for any future presidential run. Shuler called a potential AI-driven economic collapse a coming "crisis." In August 2025, Newsom announced a partnership with Google, Microsoft, IBM and Adobe to expand AI education in California schools and community colleges, a workforce preparation push that now looks like a precursor to Thursday's more sweeping order.
The article notes that after signing the bill the governor shared this comment on X.com. "California will pursue new policies that make sure working Californians — not just Big Tech — benefit from the wealth and breakthroughs coming out of this space."
Newsom telegraphed Thursday's order earlier this week, when he appeared at the Center for American Progress IDEAS Conference in Washington. "Businesses are going to make a fortune, and that's why you cannot continue to have a payroll tax system that taxes jobs and then subsidizes automation."
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