Finally, someone in government gets it. New York just became the first state to require companies to disclose whether artificial intelligence is the reason for their layoffs, and it's exactly the kind of pragmatic policy response we need as AI reshapes the workforce.
The move applies to New York State's existing Worker Adjustment and Retraining Notification (WARN) system and took effect in March. Companies must now select whether "technological innovation or automation" is a reason for job cuts, and if so, name the specific technology responsible—like AI or robots. It's a simple checkbox that could revolutionize how we understand and respond to technological displacement.
This isn't about stopping AI adoption or vilifying companies for using technology. It's about bringing desperately needed transparency to one of the most significant economic transformations of our time.
Data-Driven Workforce Policy Finally Makes Sense
New York Governor Kathy Hochul first proposed the change in her January 2025 State of the State address, explaining that the goal is to understand "the potential impact of new technologies through real data." Translation: instead of making policy based on speculation and fear, let's actually measure what's happening.
The federal WARN Act requires employers with 100 or more employees to give 60 days' notice for layoffs affecting at least 50 workers at a single location, but New York's WARN Act goes further, applying to companies with 50 or more employees and requiring disclosure for layoffs involving at least 25 workers or a third of the workforce at one site. This expanded coverage means more comprehensive data collection about AI's workforce impact.
So far, no companies filing WARN notices in the state have said the layoffs were due to AI—but that's partly because the requirement is new. As companies begin reporting, we'll finally have real data instead of apocalyptic predictions or corporate spin.
Critics might argue this creates additional compliance burden, but they're missing the bigger picture. Employers that provide greater disclosure and transparency about how workers will interact with AI and automated systems will foster greater trust and job security, prepare workers to effectively use AI, and open channels for workers to provide input to improve the technology or correct errors.
This transparency serves multiple stakeholders brilliantly:
For Workers: Early warning systems allow people to plan career transitions, pursue relevant training, and make informed decisions about their professional futures instead of being blindsided by sudden displacement.
For Companies: Organizations that proactively communicate about AI adoption build stronger relationships with their workforce. Transparency reduces anxiety, increases buy-in for technological changes, and positions companies as responsible employers in a competitive talent market.
For Policymakers: Real data enables evidence-based policy responses. Instead of reactive measures after mass unemployment, legislators can design proactive support systems, training programs, and economic transition strategies.
The most powerful aspect of New York's approach is how it connects disclosure to action. The initiative would also require employers to provide affected workers with access to workforce training programs and support services when AI is a factor in their termination. This isn't just data collection—it's the foundation for systematic workforce development.
Worker retraining programs are often proposed as a policy response to AI-driven labor displacement, but historically they've had mixed results. Part of the problem has been timing—by the time workers seek retraining, they're already unemployed and under financial pressure. New York's 90-day advance notice requirement creates a crucial window for proactive reskilling.
Instead of focusing on the 92 million jobs expected to be displaced by 2030, leaders could plan for the projected 170 million new ones and the new skills those will require. This shift from reactive to proactive workforce planning could transform how we handle technological transitions.
While no other states have followed New York's lead yet, employment lawyers suggest it signals growing concern among regulators. This kind of first-mover advantage often cascades across state lines—especially when the policy addresses widespread concerns about economic disruption.
California's Privacy Rights Act (CPRA) gives employees greater control over how their personal data is used, including data collected by AI tools. The U.S. Equal Employment Opportunity Commission (EEOC) has been actively working to address AI bias in hiring and employment practices. New guidelines are expected to provide clearer protections for workers.
New York's approach complements these efforts by focusing on the most visible impact of AI: job displacement. By requiring disclosure, the state creates accountability without stifling innovation.
For marketing leaders, this transparency requirement represents a fundamental shift in how companies communicate about AI adoption. Organizations can no longer quietly automate away roles—they'll need to develop coherent narratives about their technological strategy and its impact on human workers.
This creates opportunities for forward-thinking companies to differentiate themselves through responsible AI adoption. Brands that proactively communicate about their approach to AI, invest in worker transitions, and demonstrate commitment to their workforce will build stronger reputational advantages.
Companies that try to hide AI-driven changes or treat workers as disposable will face public scrutiny and potential boycotts. Transparency isn't just legally required—it's becoming a competitive necessity.
The real genius of New York's approach is that it treats AI workforce disruption as a manageable challenge rather than an unstoppable force. By requiring disclosure, the state acknowledges that technological displacement is happening while creating mechanisms to address it systematically.
AI will continue creating new jobs, including those focused on the development, deployment, and human oversight of AI. But it will also eliminate others. The key is managing this transition thoughtfully rather than letting it happen haphazardly.
Globally, professionals today are adding a 40% broader skillset to their profiles than they did in 2018. Since 2023, the number of AI literacy skills added by LinkedIn members has increased by 177%. This shows workers are already adapting—they just need better information about what's coming.
New York's AI disclosure law represents the kind of pragmatic policy response we need more of: evidence-based, transparent, and focused on solutions rather than fear. It acknowledges technological change while creating frameworks to manage its impact responsibly.
Ready to navigate AI transformation transparently? Our growth experts help organizations implement AI strategies that strengthen rather than undermine workforce relationships. Because the future belongs to companies that see AI adoption as a collaborative opportunity, not a zero-sum game.