Policy brief · Technology
No. 05 · October 2026

AI and Working People

Make the machine work for the people who do the work.

For campaign staff, legislative offices and press · Figures sourced in the notes

The bottom line

Since 1979, productivity grew 90.2% while typical workers' pay grew 33.0%.¹
Workers' share of business output fell to 52.8% in mid-2026, the lowest on record.²
Employers cited AI in 120,136 announced job cuts through September 2026, the top reason given.⁴
Starting July 2027, California will require human review before AI-driven firing or discipline. Congress has a bill to stop invasive workplace surveillance.^7,9
80% of Americans want AI rules kept even if development slows.¹³

+90.2%Productivity growth since 1979¹

+33.0%Typical worker's pay growth¹

52.8%Labor share, Q2 2026, a record low²

80%Want AI rules even if slower¹³

01The problem

The gains go up, not out. If typical pay had kept pace with productivity since 1979, the Economic Policy Institute estimates workers would earn $16.40 more an hour.¹ Labor's share of output hit its lowest level since records began in 1947.²

The build-out is enormous. Amazon, Microsoft, Alphabet and Meta plan more than $700 billion in capital spending in 2026.³

The first rung is going. Employment for workers ages 22 to 25 in the most AI-exposed jobs fell about 13% relative to less-exposed jobs.⁵

Growth since 1979

Productivity

+90.2%

Typical pay

+33.0%

Economic Policy Institute, 1979 to 2025.¹

02The evidence

Workers are worried, and for good reason. 52% of U.S. workers say they are worried about AI's future use in the workplace, and 32% expect fewer job opportunities for themselves.⁶

Unions have shown it can be done. After a five-month strike in 2023, the Writers Guild of America won contract terms that bar AI from writing or rewriting scripts and stop studios from forcing writers to use it.¹⁴

The industry is spending to block rules. 556 groups lobbied the federal government on AI in the first half of 2024 alone, and a pro-AI super PAC launched with more than $100 million in pledges.^10,11 A 10-year ban on state AI laws failed in the Senate 99 to 1, but Colorado later replaced its AI law with a narrower one.^12,15

03The plan

Two models are ready now. The Stop Spying Bosses Act (S. 4831, H.R. 9402), introduced in June 2026, limits what employers can collect about workers and requires disclosure.^7,8 California's No Robo Bosses Act (SB 947), signed September 30, 2026, requires human review of AI-driven discipline and firing.⁹ The Constituent agenda:

Reform	What it does
A seat at the table	A right to bargain over how AI is brought into a workplace, before it arrives.
No robot bosses	Human review and written notice before AI-driven discipline or firing.
Limits on surveillance	No monitoring of organizing, health, immigration status or off-duty life; workers can see their data.
Share the gains	Tax policy that stops rewarding companies for replacing workers, and a public share in AI built with public resources.
A real safety net	Modern unemployment insurance, wage insurance and free training.
Keep states free to act	No federal preemption of state protections unless Congress passes stronger ones.

04Who benefits and who pays

Who benefits

Workers, who would get notice, human review and a say in how AI is used on them.^7,9
Young workers, who are losing entry-level jobs fastest.⁵
Responsible employers, who would no longer be undercut by firms that cut corners on surveillance and automation.

Who pays

Companies that monitor workers for organizing, health or immigration status would have to stop.⁷
The largest tech firms, spending more than $700 billion this year, would share more of the gains through taxes and wages.³
The AI lobby loses its push to block state laws.^10,11

05What lawmakers can do

Cosponsor the Stop Spying Bosses Act (S. 4831, H.R. 9402).^7,8
Pass a state No Robo Bosses law on California's model.⁹
Oppose federal preemption of state AI protections.¹²
Refuse AI industry PAC money while these rules are written.
Use the toolkit for the bill's language, a model resolution and answers to the industry.

Notes

The Constituent Institute · constituentinstitute.org/ai-and-working-people-brief Funded by people, not corporations. Free to copy and share.