Newsom expands AI use in state while tracking job losses

What happened

California Governor Gavin Newsom has signed a deal with Anthropic to expand use of its Claude chatbot across state agencies, while simultaneously launching a plan to track AI-related job losses through unemployment insurance claims.

Why it matters

The move reflects a political tension facing state leaders — they want to regulate tech company power but increasingly depend on AI products themselves. Research by Ramp and Revelio found companies heavily adopting AI have increased hiring, and California's dashboard found no broad evidence of rising statewide unemployment from AI; however, the state did find rising unemployment claims among workers in jobs highly exposed to AI, like those in tech. For politicians like Newsom preparing for higher office, voter fears about AI job losses are a real political concern regardless of whether large-scale losses have yet materialized.

What to watch

California's dashboard will continue measuring unemployment insurance claims to track whether AI adoption translates into job displacement among vulnerable worker groups, even if economy-wide effects remain unclear.