Gina Raimondo Warns of Immediate AI Layoffs, Urges Proactive Planning

Gina Raimondo, former U.S. Commerce Secretary and leader of the nonprofit Raise Us, has warned that while artificial intelligence will ultimately generate net employment, the lack of a strategic transition plan threatens severe economic disruption and social instability. Raimondo, who co-founded Raise Us with former Indiana Governor Eric Holcomb, maintains an optimistic view of long-term AI benefits but cautions that an unmanaged rollout could displace tens of millions of workers. She argued that sudden mass layoffs could trigger deep recessions, spike unemployment, and provoke civil unrest, potentially fraying democratic institutions and forcing regulators to stifle innovation, thereby ceding global leadership to China. Raimondo's urgency stems from conversations with corporate executives following her return to the private sector. She noted that numerous CEOs contacted her expressing concern over impending workforce reductions due to AI and robotics. Raise Us is addressing this by building a coalition of private sector leaders and state governors to develop proactive measures. The organization is currently implementing pilot initiatives in Arkansas, Utah, Maryland, and Connecticut, focusing on preparing the labor market for an agentic economy through targeted policy experimentation. The nonprofit is advocating for structural reforms to address deficiencies in the U.S. workforce system, which Raimondo described as outdated and ill-equipped for modern challenges. Recommendations include overhauling unemployment insurance mechanisms, creating year-of-service programs for young adults, and establishing salary support and retraining pipelines for older workers at high risk of displacement. Raimondo also highlighted the need to reform tax incentives, noting that current payroll structures penalize human labor while offering no costs for AI agents, thereby encouraging employers to automate prematurely. Drawing on her father's experience as a manufacturing worker displaced by outsourcing, Raimondo emphasized the necessity of a bridge to new careers for affected populations. She expressed low confidence in Congress passing effective bipartisan legislation within the next three years, citing legislative gridlock. Raise Us therefore targets a coalition of CEOs and officials willing to prioritize long-term workforce stability over short-term profit maximization. Raimondo concluded that without coordinated intervention, the rapid advancement of AI capabilities risks irreparably damaging the social fabric unless policymakers and businesses act decisively to align technological adoption with worker protection.