As concerns grow over how artificial intelligence is reshaping the workforce, California legislators are taking a step to more fully understand the consequences. Assembly Bill 2545, authored by Asm. Pilar Schiavo, proposes a comprehensive study of how the rapidly evolving technology is impacting jobs across industries. At a time when headlines often focus on disruption, AB 2545 reflects an effort to understand the scope of change before crafting possible policy solutions.

The legislation would create the California Artificial Intelligence Worker Impact Data Assessment Project within the California Employment Development Department. This study proposes to analyze how AI is influencing employment trends and produce recommendations to support workers affected by these shifts. Early data suggests that AI is already contributing to job displacement, particularly in roles involving repetitive or automatable tasks such as customer service, accounting, and administrative work.

Beyond employment, the rise of AI also carries potential fiscal consequences. With a significant portion of government revenue derived from income and payroll taxes, large-scale job displacement could impact public funding streams. While projections vary, the underlying concern is clear: as AI continues to reshape the labor market, its ripple effects may extend far beyond individual workers to the broader economy. The California Chamber of Commerce who has led the opposition to AB 2545, has shifted to a neutral position following recent amendments focusing the bill on research, rather than regulation.

For California Applicants’ Attorneys, these developments underscore the importance of staying ahead of how AI is reshaping both the workforce and legal practice. CAAA is actively engaging with these issues through our educational opportunities, including a recent webinar “AI is a Tool, Not a Trap: Ethical Boundaries for Lawyers”, which explores the key risks practitioners face when using AI tools and reviews guidance from the State Bar of California on professional responsibilities, including competence and confidentiality. Also, our upcoming convention will feature a panel titled, “The Use of AI in the Practice of Workers’ Comp Law and Medicine,” designed to help practitioners navigate emerging ethical considerations, understand how AI may influence evidence and case strategy, and ensure that new technologies are used to strengthen rather than undermine the representation of injured workers.

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