State Regulation of AI & Workforce

AI has an unclear impact on the labor market.

Some researchers estimate that between 15% and 20% of workers had jobs that were at risk of disruption and possible loss due to artificial intelligence (AI) (Kochhar 2023, Sytsma & Sousa 2023). Others anticipate that AI will increase the number of jobs but may shift the market toward skilled workers (Albanesi et al 2023). Others dispute this, finding that higher paying and higher skilled jobs are at greater risk of displacement from AI (Kochhar 2023). The impacts of AI since 2010 have been relatively small and constrained to specific sectors of the labor market, and current changes would take time to study (Acemoglu et al 2022). As of 2020, fewer than 3% of businesses, representing 11-16% of U.S. employment, reported using advanced AI technologies (U.S. Census Bureau 2021).

AI can be used to augment workers’ capabilities, in hiring and firing decisions, or as part of surveillance measures (Gmyrek et al 2023, Mettler 2023, Raine et al 2023). Polling data suggests that workers are not threatened by AI in regards to their work, and instead see it as a helpful tool (Kochhar 2023). However, AI use in worker surveillance has been shown to negatively impact workers’ long-term health and mental health, increase turnover, and lead to symptoms associated with burnout (American Psychological Association 2023, Gutelius & Pinto 2024). In addition, most workers do not support AI being used in hiring, firing, or surveillance (Raine et al 2023).

Focusing on worker safeguards can mitigate concerns around surveillance and privacy.

To mitigate worker concerns around surveillance and data privacy, research suggests focusing on several key areas (Hickok & Maslej 2023):

• Limiting or minimizing data collection by requiring employers prove relevance and necessity to accomplish a legally defined purpose.
• Ensuring data quality, including accuracy and completeness, especially for surveillance data.
• Transparency of purpose and methods for data collection by employers.
• Using limitations on when and how employers can collect data on employees, and when they can deploy this data.
• Security of data in storage, access, and processing.
• Informed consent, where workers have the right to know what is being collected about them and why, and have the opportunity to request changes or deletions of incorrect or improper data collections.
• Accountability measures to ensure that principles and procedures are followed.

Other research also suggests involving workers in shaping the technology used on them, holding businesses responsible for data safety, and requiring that all systems receive human review, especially when employment decisions such as hiring and firing are being made (U.S. Senate Subcommittee on Employment and Productivity 1991).

Very few states have any workforce related AI regulations.

While states have introduced 477 bills relating to AI in 2024, these tend to focus on the use of AI by government or law enforcement agencies (158 bills), use of AI by private sector entities (146), to encourage responsible use practices to limit algorithmic discrimination (91), and to study the effect of AI (74) (NCSL 2024a). Additionally, while 1,023 AI-related bills have been filed across all states since 2019, only 123 have passed, with 44 related to workforce or education (NCSL 2023, NCSL 2024a, NCSL 2024b, Figure 1). Enacted legislation typically focuses on government use (53) and studies of AI impact on topics ranging from economic development to education (40).

In 2024, 39 bills were introduced pertaining to the effect on labor and employment, with 18 related to education and training on AI (NCSL 2024a). Education-related AI bills tend to focus on requiring computer science courses for high school students, upgrading high school and college facilities, and recruiting technology talent in higher education (AL H 187 2020, UT S 96 2020, MS H 633 2021, NC H 8 2023, NJ A 4700 2024, SC H 5100 2024, WA S 5950 2024).

Workforce or employment related bills focus on tax and grant incentives for AI related businesses and the establishment of working groups to study the effect on the state’s economy and workforce (NY S 3971 2019, MA H 5250 2020, AL SJR 104 2021, MD H 658 2021, MD S 444 2021, WV H 2760 2021, MD H 622 2023, CA A 2885 2024, MD H 1128 2024, NJ S 3432 2024, OR S 5701 2024, UT H 534 2024, WA S 5838 2024).

IL is the only state to enact a bill of rights to prevent discrimination in hiring via the use of AI and to require employers to notify potential employees of the use of AI in interviewing and assessing candidates (IL H 2557 2019, IL H 3773 2024). NY and CA have passed legislation concerning the rights of an individual to their own likeness when used in generative AI (CA A 2602 2024, NY S 7676 2024). CA requires call center workers to be notified if AI or an automated decision system (ADS) that would eliminate or impact their core job functions is used (CA S 1220 2024). No states have enacted bills implementing broad worker safeguards in employment or surveillance (NCSL 2023, NCSL 2024a, NCSL 2024b).

Figure 1. AI and Workforce related bills passed by legislatures from 2019-2024.

Enacted legislation grouped by bill topic area. Education/training is legislation for education or training programs that develop skills or knowledge in AI. Effect on labor/employment is legislation the relates to the effect of AI on the workforce, the type, quality, and number of jobs, and labor markets. Notification requires informing consumers or employees when they may be interacting with AI. Responsible use regulates AI to prevent discrimination, differential treatment, or other harms based on a protected class. Definitions from NSCL 2024a.

For all bills related to AI and their associated topic areas, enactment or failure, and more, please download the AI and Workforce Bills spreadsheet (xlsx).

References

Alabama (AL) H 187 (2020). 2020 General Session. Education budget, appropriations for the support, maintenance, and development of public education. https://www.bamapolitics.com/alabama/bills/2020-alabama-legislative-regular-session/2020-alabama-house-bills/hb-187/

Alabama (AL) SJR 104 (2021). Regular Session. Act Number 2021-352. https://arc-sos.state.al.us/cgi/actdetail.mbr/detail?year=2021&act=%20352&page=bill

Albanesi S, Dias da Silva A, Jimeno JF, Lamo A, Wabitsch A (2023). New Technologies and Jobs in Europe. IZA Institute of Labor Economics: Deutsche Post Foundation. https://docs.iza.org/dp16227.pdf

American Psychological Association (2023). 2023 Work in America Survey: Artificial intelligence, monitoring technology, and psychological well-being. https://www.apa.org/pubs/reports/work-in-america/2023-work-america-ai-monitoring

California (CA) A 2602 (2024). 2023-2024. Chapter 259. Contracts against public policy: personal or professional services: digital replicas. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2602

California (CA) A 2885 (2024). 2023-2024. Chapter 843. Artificial Intelligence. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2885

Gutelius B, Pinto S (2024). Pain Points: Data on Work Intensity, Monitoring, and Health at Amazon Warehouses. University of Chicago. https://indigo.uic.edu/articles/report/Pain_Points_Data_on_Work_Intensity_Monitoring_and_Health_at_Amazon_Warehouses/24435124?file=44065940

Gmyrek P, Berg J, Bescond D (2023). Generative AI and Jobs: A global analysis of potential effects on job quantity and quality. International Labour Organization (ILO). ILO Working paper 96. https://www.ilo.org/publications/generative-ai-and-jobs-global-analysis-potential-effects-job-quantity-and

Hickok M & Maslej N (2023). A policy primer and roadmap on AI worker surveillance and productivity scoring tools. AI Ethics. 3: 673-687. https://doi.org/10.1007/s43681-023-00275-8

Illinois (IL) H 2557 (2019). 101^st General Assembly. Video Interview Act. https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2557&GAID=15&DocTypeID=HB&SessionID=108&GA=101

Illinois (IL) H 3773 (2024). 103^rd General Assembly. Limit Predictive Analytics Use. https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3773&GAID=17&DocTypeID=HB&SessionID=112&GA=103

Kochhar R (2023). Which U.S. Workers Are More Exposed to AI on Their Jobs? Pew Research Center. https://www.pewresearch.org/social-trends/2023/07/26/which-u-s-workers-are-more-exposed-to-ai-on-their-jobs/

Maryland (MD) H 622 (2023). Economic Development – Industry 4.0 Technology Grant Program. Ch 498. https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0622?ys=2023rs

Maryland (MD) H 658 (2021). Transforming Manufacturing in a Digital Economy Workgroup (Making It in Maryland). Ch 581. https://mgaleg.maryland.gov/2021RS/Chapters_noln/CH_581_hb0658e.pdf

Maryland (MD) H 1228 (2024). Labor and Employment – Workforce Development – Talent Innovation Program and Fund. Ch. 421. https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1128?ys=2024RS

Maryland (MD) S 444 (2021). Transforming Manufacturing in a Digital Economy Workgroup (Making It in Maryland). Ch. 582. https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0444?ys=2021rs

Massachusetts (MA) H 5250 (2020). 191^st General Court of the Commonwealth of Massachusetts. An Act Enabling Partnerships for Growth. https://malegislature.gov/Bills/191/H5250

Mississippi (MS) H 633 (2021). 2021 Regular Session. An Act to Create the Mississippi Computer Science and Cyber Education Equality Act; To Authorize and Direct the State Department of Education to Implement a Mandatory K-12 Computer Science Curriculum Based on the Mississippi College and Career-Readiness Standards for Computer Science, Which Includes Instruction In, But Not Limited To, Computation Thinking, Cyber-Related, Programming, Cyber Security, Data Science, Robotics and Other Computer Science and Cyber-Related Content; To Prescribe Minimum Components of the Curriculum At Each Grade Level; And To Provide for Teacher Training As Needed At All Grade Levels; To Amend Section 37-13-171, Mississippi Code of 1972, To Extend the Repealer on the Statute Requiring Every School District to Adopt a Policy to Implement Abstinence-Only or Abstinence-Plus Education Into Its Curriculum; And For Related Purposes. https://billstatus.ls.state.ms.us/documents/2021/html/HB/0600-0699/HB0633SG.htm

Mettler T (2023). The connected workplace: Characteristics and social consequences of work surveillance in the age of datafication, sensorization, and artificial intelligence. Journal of Information Technology. 39(3). https://doi.org/10.1177/02683962231202535

National Conference of State Legislatures (NCSL) (2023). Legislation Related to Artificial Intelligence. https://www.ncsl.org/technology-and-communication/legislation-related-to-artificial-intelligence

National Conference of State Legislatures (NCSL) (2024a). Artificial Intelligence 2024 Legislation. https://www.ncsl.org/technology-and-communication/artificial-intelligence-2024-legislation#Body

National Conference of State Legislatures (NCSL) (2024b). Artificial Intelligence 2023 Legislation. https://www.ncsl.org/technology-and-communication/artificial-intelligence-2023-legislation

New Jersey (NJ) A 4700 (2024). 2024-2025 Session. An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2025 and regulating the disbursement thereof. https://www.njleg.state.nj.us/bill-search/2024/A4700

New Jersey (NJ) S 3432 (2024). 2024-2025 Session. An Act concerning the development of artificial intelligence innovations, ventures, and facilities, and amending and supplementing P.L. 2020, c 156. https://www.njleg.state.nj.us/bill-search/2024/S3432

New York (NY) S 3971 (2019). 2019-2020 Legislative Session. https://www.nysenate.gov/legislation/bills/2019/S3971

New York (NY) S 7676 (2024). 2023-2024 Legislative Session. Establishes contract requirements for contracts involving the creation and use of digital replicas. https://www.nysenate.gov/legislation/bills/2023/S7676/amendment/B

North Carolina (NC) HB 8 (2023). 2023-2024 Session. An Act to Make Various Changes To the General Statutes. https://www.ncleg.gov/BillLookup/2023/H8

Oregon (OR) S 5701 (2024). 2024 Regular Session. Relating to state financial administration; declaring an emergency. https://olis.oregonlegislature.gov/liz/2024R1/Measures/Overview/SB5701

Raine L, Anderson M, McClain C, Vogels EA, Gelles-Watnick R (2023). AI in Hiring and Evaluating Workers: What Americans Think. Pew Research Center. https://www.pewresearch.org/internet/2023/04/20/ai-in-hiring-and-evaluating-workers-what-americans-think/

South Carolina (SC) H. 5100 (2024). 2024-2025 General Appropriations Bill South Carolina State Budget Bill H. 5100. https://www.scstatehouse.gov/sess125_2023-2024/appropriations2024/gab5100.php

Stysma T, Sousa EM (2023). Artificial Intelligence and the Labor Force. RAND. https://www.rand.org/pubs/research_reports/RRA2655-1.html

U.S. Census Bureau (2021). ABS – Module Business Characteristics: 2021 Tables (Employer Businesses). https://www.census.gov/data/tables/2021/econ/abs/2021-abs-mcb.html

U.S. Senate Subcommittee on Employment and Productivity (1991). Hearing Before the Subcommittee on Employment and Productivity of the Committee on Labor and Human Resources. United States Senate. 102^nd Congress. S 516. Privacy For Consumer and Workers Act. S Hrg. 102-482. http://web.mit.edu/gtmarx/www/labor_hr_testimony.pdf

Utah (UT) H 534 (2024). 2024 General Session. Boards and Commissions Modifications. https://le.utah.gov/~2024/bills/static/HB0534.html

Utah (UT) S 96 (2020). 63^rd Legislature. 2020 General Session. Emerging Technology Talent Initiative. https://le.utah.gov/~2020/bills/static/SB0096.html

Washington (WA) SB 5838 (2024). 2023-24. Establishing an artificial intelligence task force. https://app.leg.wa.gov/billsummary?BillNumber=5838&Year=2023&Initiative=false

Washington (WA) SB 5950 (2024). 2023-24. Making 2023-2025 fiscal biennium supplemental operating appropriations. https://app.leg.wa.gov/billsummary?BillNumber=5950&Year=2023

West Virginia (WV) H 2760 (2021). Legislative Session: 2021 (Regular Session). Relating to economic development incentive tax credits. https://www.wvlegislature.gov/bill_status/Bills_history.cfm?input=2760&year=2021&sessiontype=RS&btype=bill