As AI layoff fears mount, lawmakers weigh a bigger safety net for workers

As artificial intelligence capabilities improve, many Americans are worried that the technology could one day put them out of work — a possibility more lawmakers in Washington are preparing for.

Members of Congress have recently introduced a series of bills to safeguard the nation’s workforce against potential AI-related disruptions. Their proposals range in scope, with many geared toward creating training programs to support workers if their roles are eliminated.

On Friday, Sen. Ron Wyden, a Democrat from Oregon, joined the push to protect workers with “The Stability and Opportunity for Workers Act,” a bill that would expand unemployment benefits during “high unemployment periods.” 

For instance, the bill would extend unemployment benefits for 52 weeks if the unemployment rate reaches 8.5%, double the current standard of up to 26 weeks.

The bill would also assist workers displaced by AI disruption by providing them with education and retraining for higher-paying jobs, Wyden’s office said in a statement.

The raft of proposals comes amid warnings about the large-scale displacements AI could cause — some of them from the leaders of AI labs themselves. Last year, Anthropic CEO Dario Amodei told Axios that AI could wipe out half of all entry-level white-collar jobs and spike unemployment to 10% to 20% in the next one to five years.

Prominent tech leaders have also sounded the alarm bell. In a recent essay, Microsoft co-founder Bill Gates warned that AI could put millions of jobs at risk.

Those projections haven’t materialized, with economists noting that AI hasn’t yet created major workforce displacements. While there have been AI-related layoffs, most have been concentrated in the tech industry.

That hasn’t done much to quell the concerns of Americans, nearly 80% of whom said it’s extremely or very important to protect workers in the age of AI, according to a poll earlier this month from The Associated Press-NORC Center for Public Affairs Research.

Here’s a rundown of some of the proposals lawmakers have introduced to address those concerns.

Make AI Work for Americans Act

This bill, introduced last month by Sen. Mark Kelly, a Democrat from Arizona, would create three excise taxes on the AI industry, including a 5% tax on digital advertising revenue, an AI usage tax and a 50% excess profits tax. 

Revenues generated by the tax would go into a fund that could be tapped to retrain displaced workers, among other options.

AI Tax and Work Protection Act

Democratic Reps. Greg Casar of Texas, Valerie Foushee of North Carolina and Sara Jacobs of California introduced this bill in August. It proposes taxing artificial intelligence companies based on token usage, with the tax rate rising if the unemployment rate rises.

The money would be used to create jobs to offset AI layoffs, according to Rep. Casar’s office.

AI-Related Job Impacts Clarity Act

Sen. Mark Warner, a Democrat from Virginia, and Sen. Josh Hawley, a Republican from Missouri, introduced this bill, which would enhance transparency about workforce disruptions. Introduced last year, it would mandate that major companies and federal agencies report AI-related layoffs to the Department of Labor, which would then share the data publicly. 

Democratic Reps. Steven Horsford of Nevada and Sara Jacobs of California, along with James Moylan, who serves as the House’s delegate for Guam, introduced a version of the bill in the House this July.