California is moving to prepare workers and businesses for the growing economic disruption caused by artificial intelligence as concerns over automation-driven job losses intensify nationwide.

California Launches AI Workforce Protection Strategy

Newsom announced a sweeping executive order aimed at helping the state respond to the workforce challenges posed by rapid AI adoption.

In a post on X, he warned that "the system is broken," arguing that billionaires are getting wealthier while workers are increasingly being replaced by algorithms.

"We have to build a future that protects workers, supports small businesses, and ensures the new economy works for everyone, not just a handful of tech companies," Newsom said.

The executive order directs California agencies to work alongside economists, labor experts, universities and industry leaders to identify early signs of workforce disruption and recommend policies to soften the impact of AI-driven automation.

AI Layoffs, Worker Support And Economic Inequality

The order calls for exploring policies including stronger severance protections, employment insurance, worker retraining programs and transition support for displaced employees.

California will also examine worker ownership models and "universal basic capital" concepts aimed at helping workers benefit from AI-generated productivity gains.

The move comes as layoffs continue to mount across the technology sector. More than 81,000 tech jobs were cut during the first quarter of 2026 as companies accelerated investments in AI infrastructure and automation technologies.

Federal labor data released earlier this month showed U.S. nonfarm payrolls increased by 115,000 in April while the unemployment rate remained at 4.3%. Average hourly earnings rose 0.2% to $37.41.

Public Anxiety Around AI Continues To Grow

The announcement also follows growing public concern about the pace of AI development.

Earlier this week, Sen. Bernie Sanders (I-Vt) urged Congress to take action on AI regulation, citing polling data showing widespread anxiety about automation and job displacement.

A latest YouGov survey found 71% of Americans believe AI development is moving too quickly, while separate polling from Blue Rose Research showed 77% fear entire industries could disappear because of AI automation.