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New York has introduced a new requirement for companies to reveal if artificial intelligence played a part in their layoffs. This addition to the state’s Worker Adjustment and Retraining Notification (WARN) system makes New York the first state in the U.S. to mandate such disclosure.
The measure aims to provide regulators with clearer insight into how AI is impacting employment, according to Entrepreneur.
Under the updated WARN rules, companies planning mass layoffs or plant closures must fill out a form at least 90 days in advance. The form now includes a checkbox asking if “technological innovation or automation” contributed to the job cuts. If selected, employers must specify the exact technology involved, such as AI or robotics.
Governor Kathy Hochul proposed this change during her January 2025 State of the State address. As of now, no companies filing WARN notices in New York have reported AI as a cause for layoffs.
While no other states have yet adopted similar AI disclosure requirements, experts view New York’s move as a signal that regulators are increasingly concerned about AI’s impact on the workforce.
Concerns about AI’s effect on jobs continue to mount. Recently, Anthropic CEO Dario Amodei warned that AI could eliminate half of all entry-level white-collar jobs within five years and push unemployment rates up by 20%. He also predicted that AI would take over all coding tasks for software engineers within a year.
As AI adoption grows, New York’s new reporting rules may offer an early look at how automation reshapes the labor market.
