New York is asking businesses to clarify whether AI caused layoffs

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New York is taking an unprecedented step by asking businesses to reveal whether artificial intelligence is the reason for the layoffs.

The move applies to New York's existing Worker Coordination and Retraining Notice (WARN) system and came into effect in March. Bloomberg It has been reported. New York was the first state in the United States to add disclosure. This could help regulators understand the impact of AI on the labor market.

This change retrieves the format of checkboxes added to the form that the employer filled out at least 90 days ago. Companies need to choose whether “technological innovation or automation” is the reason for their job openings. If you select that option, you'll be directed towards a second menu that is asked to name a specific technology that will be responsible for layoffs such as AI or robots.

Related: Morgan Stanley plans to fire 2,000 workers and replace some with AI

New York Governor Kathy Hochul was the first to propose a change to the state speech in January 2025.

At the time of writing, businesses submitting notifications to the state say the layoffs are from AI.

So far, no other state has followed the New York lead in adding AI disclosures to warning notifications, but some experts “indicating concerns among regulators,” said one CEO. Bloomberg.

Related: According to a new analysis, AI is dramatically reducing entry-level employment in large companies

There is growing concern about the impact of AI on the labor market. Last month, humanity CEO Dario Amodei predicted that AI will wipe out half of all white-collar jobs at the entry level within the next five years, increasing unemployment by 20%.

In March, Amodei said that AI will take over all the coding of the software engineer within a year.

Meanwhile, Victor Lazarte, general partner at Venture Capital Firm Benchmark, said in April that AI “replaces people completely” with professions such as law and recruitment. He predicted that AI would automate daily tasks and take over entry-level jobs.

New York is taking an unprecedented step by asking businesses to reveal whether artificial intelligence is the reason for the layoffs.

The move applies to New York's existing Worker Coordination and Retraining Notice (WARN) system and came into effect in March. Bloomberg It has been reported. New York was the first state in the United States to add disclosure. This could help regulators understand the impact of AI on the labor market.

This change retrieves the format of checkboxes added to the form that the employer filled out at least 90 days ago. Companies need to choose whether “technological innovation or automation” is the reason for their job openings. If you select that option, you'll be directed towards a second menu that is asked to name a specific technology that will be responsible for layoffs such as AI or robots.

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