Santa Clara County Considers AI Regulations Amid Worker Displacement Concerns
Santa Clara County leaders are weighing new guidelines for the use of artificial intelligence (AI) across county departments, including the public hospital system, California’s second largest. The move comes as labor unions raise concerns about potential job displacement and the need for responsible AI implementation.
AI Oversight and Worker Protections
The Board of Supervisors on Tuesday, March 19, 2026, discussed a comprehensive study on how AI is currently used within the county and considered guidelines to govern its future use. Proposed guidelines include requiring disclosure when AI is used in county operations, explicitly prohibiting its use in budgetary or personnel decisions and ensuring AI serves to assist, not replace, county workers. The Board of Supervisors consists of five members representing each of the county’s districts.
District 5 Supervisor Margaret Abe-Koga, along with Board President Otto Lee, is spearheading the discussion. Abe-Koga emphasized the goal of augmenting, rather than replacing, public servants. “Fundamentally our goal is not to replace workers, but to augment and help streamline their function,” Abe-Koga stated. “Our resolution includes provisions around requiring human oversight over AI, ensuring that workers have input about the tools that are adopted and how generative AI is implemented.”
Union Concerns and Current AI Applications
Labor unions have voiced concerns about the potential impact of AI on the county workforce. Zeb Feldman, a union leader for the County Employees Management Association, expressed excitement about the proposed prohibited use cases, particularly preventing AI from being used in firing or discipline decisions. “Everything is knowable now,” Feldman said.
The county is currently exploring various AI tools, including those for creating employee training videos and speech-to-text platforms for synthesizing doctors’ notes. A Microsoft CoPilot program is also being tested in select departments, with potential for expansion based on its success.
San Jose’s AI Integration and Regional Leadership
As Santa Clara County considers regulation, the City of San Jose is actively integrating AI into its local government. San Jose launched the national GovAI Coalition to establish standards for responsible AI use, attracting hundreds of cities and public servants. The Board of Supervisors oversees the operation of government and laws concerning Santa Clara County.
Mayor Matt Mahan’s office utilizes ChatGPT for speechwriting and drafting talking points. The city is also employing AI-powered software to optimize public transit, translate public meetings, review official documents, and identify public works issues like potholes and graffiti.
The Need for Responsible AI Implementation
Maria Noel Fernandez, executive director of Working Partnerships USA, highlighted the potential for local governments like Santa Clara County to serve as models for responsible AI use. “Unions, community groups and our elected allies here in Silicon Valley are fighting for a vision where AI empowers workers and protects our values,” Fernandez said.
Jean Cohen, Executive Officer of the South Bay Labor Council, stressed the importance of co-creating policies with workers and addressing concerns about potential AI-driven surveillance. “There needs to be human oversight on AI tools and a human in the loop,” Cohen stated.
Next Steps
The Board of Supervisors met on Tuesday, March 19, 2026, to discuss the proposed AI guidelines. If approved, the policy will return for adoption at a later date. The county is also reviewing the process for approving AI tools, aiming to streamline it while maintaining security and privacy for sensitive information.