As automation rises, leading to large-scale layoffs like Meta's 5% staff cut and predictions of 200,000 job losses in global banks, U.S. state governments are stepping up with worker protections and reskilling initiatives.
In a groundbreaking move, New York will be the first U.S. state to require companies to disclose when layoffs are tied to AI adoption.
Announced in Governor Kathy Hochul's 2025 "State of the State" address, the expanded Worker Adjustment and Retraining Notification (WARN) Act mandates that businesses notify the state about layoffs linked directly to AI, Forbes reports.
Earlier, WARN regulations required companies to provide advance notice of mass layoffs, helping workers transition with retraining or by finding new jobs. With the inclusion of AI-related layoffs, New York is setting a precedent for corporate accountability in the face of digital transformation.
The new regulation in New York is likely to influence how companies approach layoffs in the age of AI. It could prompt businesses to be more proactive about minimizing workforce disruption, focusing on retraining and reskilling efforts rather than reducing the workforce.
Investing In Reskilling Programs
Companies are expected to ramp up internal training programs to help employees transition to new roles that complement AI technologies. High-demand areas such as AI system management and data analysis are likely to be key focus areas.
The World Economic Forum notes that 85% of employers are prioritizing upskilling, and 50% are aiming to move staff from declining roles to growing ones.
However, a report from The Conference reveals that only 7% of Chief Human Resources Officers (CHRO) are actively implementing reskilling strategies for roles that are highly susceptible to AI takeover.
Employers are likely to reassess their workforce needs, investing in upskilling existing employees rather than relying entirely on external hires for AI-related roles.
According to The New York City Economic Development Corporation "State of the New York City Economy" report, for every AI-displaced job, four to 10 new jobs could be created, especially in areas where AI enhances human roles rather than replaces them.
What Workers Can Do
New York's move to hold companies accountable for AI's impact on workers highlights the need for collaboration between people and policies, serving as a crucial reminder to heed the warning about AI and layoffs.
As AI reshapes the workforce, workers should focus on five key strategies to stay competitive:
- Understand AI Trends: Stay informed about how AI will impact your industry in the coming years.
- Invest in Learning: Take online courses to build technical skills at any level of proficiency.
- Cultivate Human Skills: Focus on leadership, critical thinking, and creativity—skills that remain valuable despite AI.
- Leverage AI Tools: Get familiar with AI-powered tools to show adaptability in an AI-enhanced workplace.
- Network: Join communities focused on AI to uncover new opportunities and expand your skillset.
