Artificial intelligence (“AI”) has quickly evolved from an emerging technology into a tool that many employers use every day. Whether it is screening job applicants, drafting performance evaluations, summarizing workplace investigations, or assisting with policy development, AI is becoming increasingly integrated into public-sector operations.
California policymakers have taken notice. Earlier this year, Governor Gavin Newsom issued an Executive Order directing state agencies to evaluate AI’s anticipated effects on California’s workforce and to develop strategies to prepare workers, employers, and government for those changes. While the Executive Order primarily applies to state agencies, it reflects a broader policy trend: California is actively preparing for a future in which AI will play a significant role in the workplace.
Although the Executive Order does not impose new legal obligations on local public agencies, it provides a valuable reminder that public employers should begin evaluating how AI is being used within their organizations and whether appropriate policies and safeguards are in place.
AI Is Already Being Used in Public Employment
Generative artificial intelligence (“AI”) is increasingly becoming part of government operations. Public agencies are exploring AI tools to improve efficiency by assisting employees with routine administrative tasks, such as drafting documents, summarizing lengthy materials, synthesizing information, preparing internal reports, and organizing large volumes of data. In 2025, the U.S. Government Accountability Office reported that eleven federal agencies reported a significant increase in generative AI use to support internal operations and service delivery. State and local governments are similarly evaluating how these tools can enhance productivity and reduce administrative burdens. As AI becomes more widely integrated into commonly used workplace software, public employers should consider whether they have appropriate governance, training, and safeguards in place to ensure its responsible use.
California’s Policy Direction Is Becoming Clear
The Governor’s Executive Order focuses on understanding AI’s potential impact on California workers, identifying occupations that may be affected, and developing strategies to help workers adapt to technological change. It also calls for collaboration among state agencies, educational institutions, labor organizations, and industry stakeholders.
While these initiatives do not directly regulate local government employers, they send a clear signal that California intends to remain at the forefront of AI governance. Public employers should expect continued legislative, regulatory, and judicial developments addressing the use of AI in employment.
Indeed, California has already adopted regulations under the Fair Employment and Housing Act addressing the use of automated decision systems in employment decisions. As AI becomes more common in the workplace, agencies should anticipate increased scrutiny regarding how these technologies are selected, implemented, and monitored.
Human Oversight Remains Essential
One of the most important principles for public employers is that AI should assist—not replace—human judgment.
AI-generated content can be remarkably persuasive while still containing factual inaccuracies, incomplete analysis, or fabricated citations. For that reason, any AI-generated work product should be carefully reviewed by an employee with appropriate subject matter expertise before it is relied upon for decision-making.
This is particularly important when AI is used to assist with:
- Personnel investigations;
- Disciplinary recommendations;
- Performance evaluations;
- Hiring decisions;
- Accommodation analyses; or
- Legal research.
Ultimately, employers—not software—remain responsible for employment decisions.
Consider Confidentiality Before Using AI
Public agencies routinely handle confidential information, including personnel records, medical information, attorney-client communications, and sensitive investigative materials.
Before employees input information into any AI platform, agencies should understand:
- Whether the platform stores submitted information;
- Whether user data may be used to train future AI models;
- What contractual privacy protections exist;
- Whether the platform complies with applicable security requirements; and
- Whether agency policies permit the use of the platform for confidential work.
Even where an AI platform offers enterprise-level security, employees should exercise caution when handling sensitive information on such platforms and follow applicable agency policies.
Review Existing Policies
Many agencies have not yet adopted formal AI policies. Nevertheless, employees may already be using publicly available AI tools, perhaps without management’s knowledge.
Now is an appropriate time to review existing policies and determine whether additional guidance is warranted.
An effective AI policy may address topics such as:
- Approved and prohibited AI tools;
- Protection of confidential information;
- Required human review of AI-generated work;
- Documentation and record retention;
- Compliance with public records laws;
- Procurement considerations; and
- Employee training.
Clear expectations can help ensure that AI is used responsibly and consistently across the organization.
Engage Labor Relations Early
For represented employees, the implementation of AI may also raise collective bargaining considerations.
Depending on how AI is introduced, employers may need to evaluate whether implementation affects negotiable terms and conditions of employment, including workload, job duties, performance expectations, or workplace monitoring.
Even where management retains discretion to adopt new technology, bargaining obligations may arise regarding the effects of implementation. Consulting labor relations professionals early in the planning process can help agencies identify potential issues before implementation.
Preparing for What’s Next
AI technology is advancing rapidly, and California’s legal framework is evolving just as quickly. Rather than waiting for new legislation or litigation to define best practices, public employers should begin preparing now.
Among other things, agencies should consider:
- Identifying where AI is currently being used;
- Evaluating potential legal and operational risks;
- Developing governance policies;
- Training supervisors and employees on appropriate use;
- Reviewing vendor contracts and data security protections; and
- Monitoring new legal developments affecting AI in employment.
Looking Ahead
Artificial intelligence presents significant opportunities for California public employers. Used thoughtfully, AI can improve efficiency, streamline administrative tasks, and allow employees to focus on higher-value work. At the same time, the technology raises important questions regarding privacy, bias, transparency, labor relations, and legal compliance.
Governor Newsom’s recent Executive Order underscores that California is actively planning for AI’s impact on the workforce. While local public agencies are not the direct focus of that initiative, they would be well served by viewing it as an opportunity to assess their own AI practices. Agencies that establish thoughtful governance, maintain meaningful human oversight, and proactively address legal risks today will be better positioned to adapt as California’s regulatory landscape continues to evolve.






