California’s Democratic primary race took a decisive turn on May 8, when billionaire candidate Tom Steyer released a detailed AI policy platform that promises a jobs guarantee for workers whose positions are threatened by artificial intelligence. The proposal, built on an AI framework Steyer introduced in March, seeks to make California the first major economy to back "good‑paying" jobs for AI‑displaced workers.
Funding would flow from a novel "token tax" – a fraction of a cent levied on every unit of data processed by large tech firms. Steyer says the tax would feed a Golden State Sovereign Wealth Fund, with earmarked allocations for affordable housing, health‑care services and upgrades to the state’s energy infrastructure. The plan also calls for an expansion of unemployment insurance and the creation of an AI Worker Protection Administration. The new agency would bring together union leaders, academics and technologists to draft rules that safeguard workers’ rights.
"People all over this state are terrified that AI is going to hollow out this whole economy and they're going to lose their jobs," Steyer told WIRED. "We believe this can be an amazing transformational technology, but we’re not in the business of leaving people in California behind." He pledged to pour resources into training and apprenticeship programs across the state, emphasizing that a skilled workforce is essential to harness AI’s benefits without sacrificing employment.
The proposal arrives amid a wave of legislative activity addressing AI’s impact on labor. New Jersey’s Senate recently advanced a bill requiring companies that replace workers with AI to fund retraining efforts. In Washington, a handful of bills propose grants and tax credits for AI‑related training. Anthropic CEO Dario Amodei, who previously floated the token‑tax idea, acknowledged that while the tax would not serve his company’s bottom line, it could be a reasonable solution.
OpenAI, too, floated a public‑wealth‑fund concept similar to Steyer’s in April, signaling growing industry interest in funding mechanisms that cushion workforce transitions. Steyer’s rival in the Democratic primary, former HHS secretary Xavier Becerra, offered a plan focused on workforce investment and transition support but did not specify a financing source.
Steyer’s initiative also faces political headwinds. The White House, under President Donald Trump, warned that states enacting “onerous” AI regulations could lose federal broadband funding, an executive order signed in December. In New York, a super PAC backed by Silicon Valley figures, including OpenAI co‑founder Greg Brockman, targeted congressional candidate Alex Bores for his AI‑centric platform, illustrating the contentious national debate over AI policy.
If enacted, Steyer’s AI job guarantee could reshape California’s labor market, providing a template for other states grappling with rapid automation. The proposal blends taxation, public investment and regulatory oversight, aiming to turn AI from a disruptive force into a catalyst for inclusive economic growth.
This article was written with the assistance of AI.
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