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Memo

AI & California’s Labor Market

California is a tale of two states: home to both the country’s highest concentration of billionaires and the highest poverty rate. This dichotomy has been exacerbated in recent years by the growth of the AI industry. AI-powered wealth consolidation, paired with low union density and reduced worker power overall, is resulting in historic inequality. Productivity gains from AI are increasing profits for shareholders and executives at the expense of worsening working conditions or even job losses for workers.

This memo articulates the harms workers are experiencing from AI—from job displacement and algorithmic management to global supply chains that contribute to a race to the bottom on labor standards—and outlines solutions that elected officials can adopt to improve the lives of working people, while also better serving businesses and consumers.

Don’t have time to read the whole memo? Check out our explainer blog for the main takeaways.

AI & CA’s Labor MarketDownload

About the California’s AI Future memo series

California’s AI Future is a set of policy solutions that can form the basis for a people-first AI future. Other memos in the package include:

  • The Political Dynamics of AI in California: How public opinion and corporate lobbying are shaping the debate about regulating AI, and what it will take for California’s leaders to act independently.
  • AI & Affordability in California: How algorithmic rent-fixing, data center energy costs, and surveillance pricing are driving up costs for California families—and the policy solutions that can help.
  • Beyond Big Tech: An Alternative Vision for California’s Tech Economy: Pro-competition solutions to build an innovative tech ecosystem that allows all companies to compete on the merits and deliver widespread social benefits.

Download the memo below. Want to learn more about AI policy that puts people first? Check out our People-First AI page for more resources.

AI & California’s Labor Market

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