News Summary
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.
Deeper Dive: News & Info About This Topic
- Bloomberg: New York State Updates WARN Notices
- Entrepreneur: New York Requiring Companies to Reveal AI Layoffs
- National Law Review: New York Proposal to Protect Workers Displaced by AI
- New York Times: FDA Drug Approvals and Artificial Intelligence
- Forbes: Did AI Cause Those Layoffs? NY Employers May Have to Disclose
- Wikipedia: Artificial Intelligence
- Google Search: AI in Employment Laws
- Google Scholar: AI Impact on Jobs
- Encyclopedia Britannica: Artificial Intelligence
- Google News: AI Layoffs New York
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
