Senate Select Committee on Economic Development and Technological Innovation

23 October 2025

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Senate Select Committee on Economic Development and Technological Innovation Wed, 22 Oct 2025 California State Senate

00:06 - 06:31

Speaker 1

Thank you. I will call this hearing to order. This is a, really great privilege to convene the first of its kind select committee that intends to examine artificial intelligence impact on the California labor market. There's no question that the daily reports in this technology as a disruptor. And early anecdotal data suggest both a change in hiring practices and an impact on the workforce that is something that this body, this legislature is going to have to contend with and be on top of for many years to come.

I'll say more at the end of my opening remarks, but I just want to thank my colleague Senator McNerney, who's been a tremendous leader at the federal and state level, to be here with us today. Today we're not just talking about technology. We're talking about a force that is already reshaping people's livelihoods and with it the trajectory of California's economic development. Having served for seven years on California's Workforce Development Board, I have firsthand experience prioritizing training as well as technology that puts California's workforce on the cutting edge. California and in large part my district, SD 13, is the epicenter of AI innovation.

And with that comes responsibility and opportunity, I would say, to to help do this responsibly. Last year alone, our state added more than 100,000 AI related job postings more than any other state in the nation. Over 15% of all AI jobs nationwide are based here in California. That makes us uniquely positioned to lead not only in developing AI, but in ensuring that its benefits are felt across our economy, from our major industries to our local communities and to all residents. AI has the potential to increase productivity, improve job quality, and even create new categories of work.

These are opportunities that if harnessed correctly can strengthen California's competitiveness and broaden economic growth. But alongside these opportunities are very real risks. In 2023, there were over 340,000. Just as an example, there are over 340,000 commercially licensed drivers in California. And these are potential these jobs, they're real, very real jobs right now, are potentially ones that could be lost to automation.

And nationally, there are 2,200,000 heavy freight jobs and 1,700,000 light duty delivery jobs. UPS alone has estimated that around 330,000 warehouse and driving jobs could be impacted by automation. These are good jobs with good wages and good benefits. And as I'll mention in minute, we now have reports of hundreds of thousands of workers could be subject to automation at Amazon alone. Additionally, bias in these systems, some of these legislature has worked on, can shrink opportunities for those who would benefit most from them.

Within the workplace, AI monitoring has already been adopted by a growing number of firms raising concerns that technology could undermine trust, which is essential to a healthy economy. Proud was to co author one bill around workplace surveillance this year by Assembly Member Elora that did not make it through, but continue to work on this. Constituents see these risks. A majority in California now hold an unfavorable view of AI, underscoring the urgency of building sensible guardrails that allow our economy to grow while ensuring that growth is inclusive and fair. If we do nothing, AI could widen inequality, destabilize labor markets, and erode confidence in both our economy and our government.

But if we act thoughtfully, we can ensure AI adopts adoption or we can try to make sure AI adoption lifts workers up, not leaves them behind. That means investing in training and workforce development, safeguarding worker rights, and ensuring transparency and accountability in AI systems. These are not just labor policies. These are economic development priorities and strategies. Proud of some of the steps we've already taken to put some guardrails around AI, I was proud to author the AI Transparency Act to add transparency to AI generated content that will take effect next year.

Co authored this year's joint authored this year's companion chatbot bill, SB two forty three, with my colleague Senator Padilla. And again, this is something the legislature has already been grappling with for a number of years. I was proud to floor manage in the Senate then Assembly Member Gonzales's AB seven zero one, which prevented warehouse operators from using algorithmic quotas that put workers' health and safety at risk and worked on other bills to promote Earn and Learn and Job Training Act, open doors for veterans, the unhoused, formerly incarcerated to enter the workforce, employees talk ownership plans, other things I think they can be part of. If more workers are owners, they can make sure technology is implemented responsibly. At its core, this hearing is about ensuring the future of California's economy, an economy that continues to lead in innovation but also leads in fairness and opportunity.

I want to provide an opportunity for Senator McNerney to make some opening remarks. I want to thank him for joining us today. Thank him for his leadership in Congress before joining us here in the state. And he's had a bill this year. Also working in this space to, again, try to mitigate the impact of AI in the workplace.

I look forward to then hearing from our esteemed witnesses how we can achieve these goals and have a start, really, the dialogue in this body. With that, I'll turn it over to Senator McNerney. You like to make any opening remarks?

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