In a new executive order signed Thursday, Governor Newsom directed the California Government Operations Agency to explore and recommend “voluntary or mandatory programs” that would direct some profits generated by AI companies to go towards supporting “beneficial deployments of AI” and “research and development of AI” for the public good.
The agency was given the deadline of October 15, 2026 to consult with experts and come up with recommendations to “increase likelihood of AI development and deployments that advance the public good and address critical problems and emerging opportunities facing society.” Among other provisions, the Governor also ordered the California Employment Development Department (EDD) to launch a dashboard within 90 days of the order’s issuance tracking AI’s impact on employment. EDD was directed to use unemployment insurance data and consult with AI labs to build the dashboard.
The executive order comes amid increasing layoffs in the tech sector tied to the growth of the AI industry. On Tuesday, two days before the order was signed, The New York Times reported that California-headquartered Meta Platforms was laying off 10% of its workforce. In a memo sent by Meta CEO Mark Zuckerberg, Zuckerberg defended his decision, saying “AI is the most consequential technology of our lifetimes. The companies that lead the way will define the next generation.” He added that he does not expect further company layoffs this year.
According to the executive order, “the artificial intelligence (AI) industry has grown exponentially, with conservative estimates placing it at approximately $375 billion annually worldwide, and AI now deployed in industries as diverse as transportation, retail, manufacturing, energy, education, healthcare, and IT & telecom.” Existing projects tracking AI job losses, such as jobloss.ai, built by The Alliance for Secure AI, says that as of May 20, 2026, over 125,000 U.S. workers were affected by AI-linked workforce reductions.
Though AI safety advocates have been pushing for stronger regulations, some AI advocates believe AI will increase employment in the coming years with a net gain in new jobs.
Other notable provisions in the executive order include calling for recommendations on revising the WARN act, a review of collective bargaining processes in addressing AI, exploring “regulatory barriers to employee-owned company structures,” and recommendations on connecting unemployed individuals with training.
