Illustration of the integration of AI technology in the workplace.
New York has become the first state to require companies to disclose the use of artificial intelligence in mass layoffs. Starting in March 2025, businesses must indicate if AI contributed to job cuts, aiming to enhance transparency in the job market. This initiative, proposed by Governor Kathy Hochul, addresses growing concerns over AI’s impact on employment. Alongside these changes, plans for AI training programs for state workers aim to prepare the labor force for a future integrated with advanced technologies.
New York has become the first state in the United States to require companies to disclose the use of artificial intelligence (AI) in mass layoffs, as part of an initiative aimed at enhancing transparency in the job market. Under the new regulation, which is incorporated in the Worker Adjustment and Retraining Notification (WARN) system, businesses must indicate if technological innovation or automation is a reason for job cuts beginning in March 2025.
When filing WARN notices, companies will need to check a specific box regarding the involvement of AI or other automation technologies in their layoff decisions. If this option is selected, the business is required to specify the type of technology used, whether it be AI or robotics. This breakthrough regulation is a vital step in addressing the growing concerns over how AI impacts employment opportunities.
The idea for this regulation was proposed by Governor Kathy Hochul during her January 2025 State of the State address, reflecting the state’s proactive approach toward worker protections in the face of advancing technology. As of the most recent reports, no companies have yet filed WARN notices citing AI as a factor behind their layoffs.
This regulatory move comes amid rising apprehensions regarding the repercussions of AI on the labor market, with experts predicting that AI could potentially eliminate up to half of all entry-level, white-collar jobs over the next five years. The predictions also warn that unemployment rates may spike by as much as 20% due to these transitions. Leaders in various industries have recently expressed their concerns about the potential for AI technology to fully replace human roles, particularly in sectors such as law and recruitment.
To bolster protections for affected workers and to encourage companies to consider reskilling initiatives, New York’s amended WARN Act sets the groundwork for a more prudential approach towards the automation of work. As a result, employers will need to inform state authorities regarding layoffs expressly linked to the adoption of AI technologies. This may drive companies to rethink their internal training programs, preparing their workforces for roles that complement AI rather than compete against it.
In support of these regulatory changes, Governor Hochul has plans to initiate AI training programs within the state workforce to help employees enhance their skills for utilizing AI safely and effectively. By investing in training, the administration hopes to create an adaptable labor market capable of integrating new technologies harmoniously.
Recent economic analysis projects that despite the potential job losses associated with AI, there may also be new job creation—a ratio of four to ten jobs generated for every job displaced by these advancements in New York City. A report from McKinsey & Company further estimates that, alongside various technological advancements, AI could lead to an overall net increase of about 200,000 jobs in the region by the year 2030.
The evolution of the WARN regulations emphasizes the need for worker transparency and collaboration as businesses continue to integrate AI technologies into their operations. This strategic regulatory shift in New York aims not only to protect workers during transitioning phases but also to foster a future-oriented workforce prepared for the challenges and opportunities cultivated by AI advancements.
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