California is positioning itself as a leader in artificial intelligence (AI) regulation as it grapples with the dual challenges of job displacement and job creation. Governor Gavin Newsom recently signed an executive order aimed at preparing the state for an AI-driven economy. This order includes the establishment of a state dashboard to monitor AI's impact on jobs, potential revisions to layoff laws, and the introduction of expanded worker protections. At a policy conference, Newsom emphasized the urgency of addressing the workforce changes brought by AI, noting that both blue-collar and white-collar workers are feeling the effects. Experts, including Stanford Law professor Nate Persily, acknowledge the uncertainty surrounding AI's net impact on employment but agree that it will significantly disrupt the economy. The executive order also focuses on workforce training, proposing to enhance job-training programs and equip workers with necessary AI skills. Newsom advocates for a model of 'universal basic capital' to ensure workers have a stake in their companies, reflecting a shift towards ownership rather than charity. The initiative aims to support small businesses and communities, fostering an environment where AI can enhance productivity and create new job opportunities.