What HR Leaders Should Watch
SHRM’s AI in HR 2026 report found that AI’s impact on the workforce is more about transformation than job displacement, with only 7% of HR professionals reporting job losses tied to AI adoption. Additionally, 57% cited an increased demand for AI upskilling and reskilling, and 24% reported new job creation amidst AI disruption.
AI governance continues to be a blind spot, with 49% of organizations that currently use or are about to pilot AI having internal company policies for workforce regulation. This has led SHRM to develop an AI legislative framework and advocate for a comprehensive national approach to workplace AI.
In California’s case, the EO continues its broader push to shape AI policy at the state level. In recent years, the state has advanced legislation focused on AI transparency, safety standards, and workplace oversight.
For employers and HR teams, the executive order may increase expectations around workforce planning, skills development, and responsible AI adoption. It also reflects a growing policy trend toward measuring how AI affects job quality, career mobility, and employee experience alongside productivity gains.
“AI is transforming the workplace in real time, and California’s executive order underscores the importance of preparing both workers and employers for that transition,” said Emily M. Dickens, SHRM’s chief administrative officer. “SHRM supports a thoughtful, workforce-centered approach that expands AI literacy, strengthens upskilling and workforce development pathways, and helps organizations adopt emerging technologies responsibly. As policymakers evaluate the future impact of AI on jobs and economic opportunity, it will be critical to ensure any new requirements are clear, balanced, and practical for employers of all sizes while supporting innovation, workforce readiness, and employee engagement.”