States Divided on Confronting AI Job Losses: States of Play

Oct. 20, 2025, 7:26 PM UTC

STATE LAWMAKERS across the country are attempting to tackle the risks of AI-driven job displacement, with divisions emerging between legislative approaches.

  • Proposed policy responses vary in scope, with some suggesting disincentives such as a robot tax in New York, while others focus on AI skills education and worker retraining.
  • A new Illinois law, for instance, mandates that only licensed therapists can provide psychiatric therapy, limits the ways therapists can use AI for assistance, and carries fines up to $10,000 per violation. A handful of states this year restricted the use of AI to replace humans, such as community ...

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