SACRAMENTO, CA – Today, Assemblywoman Pilar Schiavo will present the Artificial Intelligence (AI) Deployment and Workforce Displacement Assessment (AB 2545) before the Assembly Labor and Employment Committee (watch live). This legislation establishes a proactive, data-driven framework to safeguard California’s workers and state safety net programs from the accelerating impact of AI.
The bill directs the Employment Development Department (EDD) to assemble an advisory panel of labor market researchers, workforce development organizations, labor unions, AI developers, and more to study the real-time and projected effects of AI on industries—ranging from customer service and data entry, to computer programming and law—and provide the state with the tools and recommendations to respond before a crisis occurs.
“California cannot afford to be reactive or put our head in the sand. As we do our best to try to protect jobs, the reality is jobs are already being eliminated. We are currently ill prepared to handle a reality where half of entry-level white-collar work is eliminated within eighteen months, as some predict,” said Assemblywoman Schiavo. “As a mom, I see my 8th grader already wondering what jobs will be left for them in four years. We cannot wait. AB 2545 ensures we meet this moment with facts, not fear - to get the real data and real solutions we need to protect our workers and our economy. We cannot wait for a crisis to arrive at our doorstep.”
The urgency of the bill is underscored by recent 2026 labor trends, where major firms have engaged in "AI-driven restructuring," laying off tens of thousands of workers in order to fund multibillion-dollar AI infrastructure or pivot. Experts estimate that up to 10% of the global workforce could be displaced in the next decade, potentially placing a multi-billion dollar strain on California’s Unemployment Insurance, CalFresh, and Medi-Cal programs.
“We’ve already seen what happens when we’re blindsided by a massive shift in employment. During the pandemic, 8.6 million Californians filed for unemployment. It cost the state $35 billion and left us with over $20 billion in debt. We didn’t see that coming, but with AI, we can,” said Assemblywoman Schiavo. “If even a fraction of the AI displacement predictions come true, we must have a plan for how we both support displaced workers find new employment and pay for the safety net needed in the interim. We cannot have a future where a few tech corporations continue to make record profits while California's workers and middle class are left behind.”
Assemblywoman Schiavo will be joined in testimony by Sara Flocks of the California Labor Federation and Sam Lewis of TechEquity Collaborative.
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Assemblywoman Pilar Schiavo was elected to the California State Assembly in November of 2022 and re-elected in 2024 to represent the 40th Assembly District, representing the Northwest San Fernando Valley, Val Verde, Castaic and the Santa Clarita Valley. Upon her election, she was appointed as Assistant Majority Whip by the Speaker of the Assembly and now serves as Chair of the Assembly Committee on Military and Veterans Affairs. During her first term she brought back a record $100 million district investments in school and community safety, seniors meal programs, veteran housing, domestic violence services and creating local jobs. Prior to her election, Assemblywoman Schiavo was a Nurse Advocate and Small Business Owner who worked in the labor movement for more than 20 years. Throughout her career, Assemblywoman Schiavo helped deliver healthcare, including reproductive healthcare, to more than one million people. In the Northwest San Fernando Valley, she co-founded an organization that helped secure housing for Veterans experiencing homelessness, has delivered more than 50,000 meals to people in need, and increased resources to help keep our communities safe. Assemblywoman Schiavo lives in Chatsworth with her creative kid where they love to hike in the Santa Susana Mountains.