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May 21, 2026
What you need to know: Governor Newsom is signing a first-in-the-nation executive order to confront the economic impacts of artificial intelligence on workers and small businesses, support workers in sectors impacted by AI transition, and pursue new policies that ensure Californians — not just big tech companies — benefit from the wealth-generating opportunities of the future economy.
SACRAMENTO – Governor Gavin Newsom today issued an executive order directing California to prepare workers, small businesses, and communities for the economic disruption that artificial intelligence will bring to the workforce. The order mobilizes state agencies, labor experts, economists, universities, and industry leaders to develop new policies, gather data, and identify early warning signs of workforce disruption — while ensuring workers share in the gains created by AI-driven productivity.
The order directs the state to explore policies including severance standards, employment insurance and transition support for displaced workers, worker ownership models, universal basic capital concepts, expanded workforce training, and stronger tracking of hiring and payroll trends to help California respond faster to potential layoffs and economic disruption. Read the executive order here.
“California has never sat back and watched as the future happened to us – and we won’t start now. We have taken the lead on advancing innovation, safety, and transparency. But we must think bigger. This moment demands that we reimagine the entire system — how we work, how we govern, how we prepare people for the future — and that work is starting right here in the Golden State.
Today is just the first step as we rewrite policy and direction, creating a future of work that works for all.”
Governor Gavin Newsom
“As the epicenter of the tech industry, California recognizes our responsibility to ensure workers are prepared for success as AI reshapes the economy. Women, in particular, face disproportionate risks of displacement and widening economic inequality as AI evolves. So, California is committed to understanding AI’s impacts on workers, modernizing workforce training, and expanding pathways into the jobs of the future so more Californians are set up for success. Today’s executive order underscores California’s commitment to advancing opportunity alongside responsible innovation.”
Jennifer Siebel Newsom
California has dominated AI innovation, with 33 of the top 50 private AI companies in the world based in California, and no state has taken more aggressive action to strengthen the safety, security, and consumer privacy of technology and online platforms. Today’s order adds to California’s comprehensive approach in creating commonsense guardrails balanced with opportunities to advance innovation in this growing sector.
In 2023, Governor Newsom made California the first state to take action on Generative AI policy, announcing an executive order to both responsibly adopt this technology in state government and begin studying its risks. The Governor convened world-leading academic experts to draft the California Report on Frontier AI Policy, providing the state with policy recommendations that helped lead to the Governor’s signature on the first state legislation nationwide, the Transparency in Frontier Technology Act (Senate Bill 53, Wiener) to help ensure that this technology moves forward responsibly. The law has since been replicated and modeled in similar laws adopted in other states.
This adds to other protections signed by Governor Newsom to create strong protocols for child safety and protections against self-harm, crack down on sexually explicit deepfakes and require AI watermarking, protect performers’ digital likenesses, and prevent scams from AI-generated robocalls. In addition, it supplements the Governor’s March 2026 executive order, which strengthened civil rights and privacy in California’s procurement of AI technology and expanded California’s adoption of AI to improve government services.
Today’s executive order directs state agencies to build a framework for responding to potential workforce disruption and ensuring workers are not left behind as AI adoption accelerates.
. The order directs the various state agencies to:
Governor Newsom announced this month the first-ever statewide deliberative democracy effort with Engaged California to assess the impacts of AI on Californians. All Californians are invited to participate in this innovative program, which provides every resident a seat at the table in shaping state policy on AI. The results of this engagement will help inform all of the activities directed by the EO. Sign up at engaged.ca.gov/ai.
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