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AB 2545

Report: labor force impact: artificial intelligence.

2025-2026 Regular Session Introduced by Pilar Schiavo

Establishes a California EDD project and panel to study AI’s impact on the labor market, assess data gaps, and deliver policy recommendations by Jan 2028.

Read second time and amended. Re-referred to Com. on APPR.
#report #artificialintelligence #laborforceimpact
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Bill Summary · AB 2545

Summary of AB 2545 (California, 2025-2026)

Objective and Legislative Purpose

  • Establishes a dedicated effort within the California Employment Development Department (EDD) to study and report on the labor market impact of artificial intelligence (AI).
  • Creates a temporary advisory panel and data assessment project to identify data needs, data gaps, and policy recommendations to support workers affected by AI in the workplace.
  • The program and panel are narrowly time-limited, with a sunset and repeal date.

Key Provisions and Changes

  • Creation of the California Artificial Intelligence Worker Impact Data Assessment Project within the EDD.
  • Establishment of the California Artificial Intelligence Worker Impact Data Assessment Project Advisory Panel (the Panel).
    • By March 1, 2027, panel size: 10 to 13 members.
    • Composition (examples):
    • Two UC labor center experts on employment/technology impacts (Governor appointments).
    • Two AI industry experts (Governor appointments).
    • Two nonprofit representatives focusing on mobility, worker development, or workplace evolution (appointed by the Speaker of the Assembly and by the Senate Rules Committee).
    • Labor organization representation: at least one member from a labor union; two additional labor org experts (appointed by the Assembly and Senate Rules Committees).
    • Private sector employer representatives: small/medium-sized employer (Rules Committee) and large employer (Governor).
    • A nonprofit organization with AI deployment experience (appointed by the Speaker of the Assembly).
  • Panel members serve without compensation but may be reimbursed for reasonable expenses.
  • The EDD, in consultation with the Panel, must conduct an assessment of data sources and collection methods about the use and impact of advanced AI on the labor force, including gaps in data collection.
  • Required deliverable: A report to the Legislature by January 1, 2028, detailing assessment results, data inventories, data gaps, cross-agency and cross-sector data collection capabilities, and policy recommendations.
    • The report must include:
    • Key questions and data needed to assess AI’s impact on workers and labor markets (e.g., how AI is introduced to manage/replace workers and automate tasks).
    • Inventory of existing state data across agencies related to technology and workforce impact.
    • Assessment of federal and local data collection systems and their potential use for future workforce analysis.
    • Assessment of data collection partnerships among federal, state, local government and nongovernmental partners.
    • Identification of gaps in data collection to inform policy.
    • Any other relevant data or assessments deemed appropriate.
    • Policy recommendations, including how to effectively support workers impacted by AI and how to keep workforce pipelines open for AI-expertise roles.
    • The Panel must post the report on its internet website and transmit it in compliance with Government Code Section 9795.
  • Termination and sunset:
    • The Panel is dissolved upon submission of the January 2028 report.
    • The section is repealed effective January 1, 2029.

Who Would Be Affected

  • Directly affects the EDD's operations and governance related to labor market data and AI impact analysis.
  • Involves participation by a broad set of stakeholders:
    • Labor unions and workers' representatives.
    • Private sector employers (small/medium and large) with AI deployment experience.
    • AI developers and nonprofit organizations with workforce experience.
    • Academic/UC labor center experts.
  • Indirectly informs policy makers, employers, workers, and workforce development programs through the 2028 report and ensuing recommendations.

Procedural and Timeline Aspects

  • Establishment of project and advisory panel within the EDD.
  • Panel appointment window: by March 1, 2027.
  • Initial report due: January 1, 2028.
  • Report delivery and public posting: compliance with Government Code 9795 and posting on the Panel’s website.
  • Sunset: January 1, 2029 (repeal of the provisions; project terminates after the report).

Fiscal and Legislative Considerations

  • Non-appropriation: The Digest notes “Appropriation: NO,” indicating no explicit new funding is provided in the bill text; however, the bill authorizes expenses for Panel members to be reimbursed, and any implementation costs would come from the EDD’s budget unless otherwise appropriated.
  • Legislative branch involvement: Requires multiple confirmation and appointment steps by Governor, Speaker of the Assembly, and Senate Rules Committee, plus coordination with Assembly Rules and other committees.

Why This Matters

  • Aims to systematically quantify and understand the labor market effects of AI in California, a topic of growing importance as automation and AI tools expand across industries.
  • Seeks to identify data gaps and establish a framework for monitoring AI-related workforce changes, with policy recommendations to mitigate impacts and preserve opportunity for workers in AI-enabled economies.

Compiled from official sources — confirm details with the bill’s official record.

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