The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Committee on Fiscal Policy BILL: SB 936 INTRODUCER: Senator Davis SUBJECT: Statewide Study on Automation and Workforce Impact DATE: April 21, 2025 ANALYST STAFF DIRECTOR REFERENCE ACTION 1. Dike McKay CM Favorable 2. Griffin Nortelus ATD Favorable 3. Dike Siples FP Pre-meeting I. Summary: SB 936 requires the Bureau of Workforce Statistics and Economic Research (bureau) at the Department of Commerce (department) to perform a statewide study on the effects of automation, robotics, and AI on the state’s workforce. The study must analyze specified information and impacts and must be conducted every three years so the bureau can update its policy recommendations. The bill does not appear to have a fiscal impact to the department. See Section V. Fiscal Impact Statement. The bill is effective July 1, 2025. II. Present Situation: Automation, Robotics, and AI in the Workforce Since the Industrial Revolution, the issue of machines replacing humans in the workplace has become increasingly concerning to the workforce. 1 There is increasing evidence that automation of lower skill occupations has contributed to wage inequality. 2 Although the use of robotics is lower in the U.S. than other countries, the estimates of one study on automation in the workforce “imply that each additional robot per thousand workers reduces the local employment-to- population ratio by 0.39 percentage points and wages by about 0.77 percent.” 3 Other researchers 1 Sara Brown, MIT, A New Study Measures the Actual Impact of Robots on Jobs. It’s Significant., available at https://mitsloan.mit.edu/ideas-made-to-matter/a-new-study-measures-actual-impact-robots-jobs-its-significant (last visited Mar. 28, 2025). 2 Daron Acemoglu and Pascual Restrepo, Robots and Jobs: Evidence from US Labor Markets, 128:6 J. POL. ECON. 2188, 2189, available at https://www.journals.uchicago.edu/toc/jpe/2020/128/6 (last visited Mar. 28, 2025). 3 Id. at 2241. REVISED: BILL: SB 936 Page 2 “found that for every robot added per 1,000 workers in the U.S., wages decline by 0.42 percent and the employment-to-population ratio goes down by 0.2 percentage points — to date, this means the loss of about 400,000 jobs.” 4 Regarding Florida specifically, rapid advances in technology may threaten the availability of jobs. One study “estimates that the Miami metropolitan statistical area (MSA), which includes Miami-Dade, Broward, and Palm Beach counties, will likely see about 23 percent of its total workforce displaced by automation by 2030 — or 761,000 South Florida jobs.” 5 Another study found that “43.4 percent of jobs across Florida had a high risk of automation in 2023.” 6 Further, a survey by the Florida Chamber Foundation shows that 77 percent of industry leaders “anticipate changes in core technologies, workforce generational shifts, or artificial intelligence will disrupt their business.” 7 Meanwhile, proponents of AI argue that it can make businesses work more efficiently by automating routine operations and letting workers focus on more important tasks. 8 Businesses can use AI to communicate with even more clients and customers than possible with just human efforts. 9 Moreover, some research on laborers who work alongside automation shows that those workers have higher wages than those workers that do not have the same computer literacy skills. 10 III. Effect of Proposed Changes: Definitions The bill defines the term “artificial intelligence” to mean a machine-based learning system that can, for a given set of human-defined objectives make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligence system uses machine and human-based inputs to: • Perceive real and virtual environments. • Abstract perceptions into models through analysis in an automated manner. • Model inferences to formulate options for information or action. 4 Brown, supra note 1. 5 Rob Wile, MIAMI HERALD, Nearly 1 million South Florida workers face automation. Here’s who will survive., available at https://www.miamiherald.com/news/business/article232600937.html (last visited Mar. 28, 2025). 6 Melanie Schmees and John Shannon, Issue Brief: Automation in Southwest Florida, available at https://www.fgcu.edu/cob/reri/news/reports/issue-brief-automation-in-southwest-florida (last visited Mar. 28, 2025). 7 FLORIDA CHAMBER FOUND., Florida Workforce 2030, available at https://www.flchamber.com/wp- content/uploads/2020/02/Florida-Workforce-2030-Report_FINAL_web.pdf (last visited Mar. 28, 2025). 8 Tyler Weitzman, FORBES, Understanding The Benefits And Risks Of Using AI In Business, available at https://www.forbes.com/councils/forbesbusinesscouncil/2023/03/01/understanding-the-benefits-and-risks-of-using-ai-in- business/ (last visited Mar. 28, 2025). 9 Id. 10 Ashley Nunes, HARV. BUS. REV., Automation Doesn’t Just Create or Destroy Jobs—It Transforms Them, available at https://hbr.org/2021/11/automation-doesnt-just-create-or-destroy-jobs-it-transforms-them (last visited Mar. 28, 2025). BILL: SB 936 Page 3 Statewide Study on Automation Under the bill, the bureau must study the economic impact of automation, AI, and robotics on employment in the state, focusing on job losses and gains due to AI and automation. By December 1, 2025, and every three years after that, the bureau must submit a report of its findings and recommendations to the Governor, the President of the Senate, and the Speaker of the House of Representatives. The bureau must conduct the study every three years to update its policy recommendations. The study must analyze: • Industries most affected and projected job displacement over the next ten years due to the use of AI. • Geographic regions within this state most vulnerable to job loss or displacement. • Demographics of workers that are most at risk. • Impact on wages and job quality in key job sectors. • Economic benefits, including productivity growth and job creation. • Workforce training programs addressing job loss or displacement. • Policy recommendations for workforce resilience, including education and retraining investments. • The rate and scale of job loss or displacement caused specifically by AI compared to other forms of automation. When executing this study, the bureau may consult with: • Business and industry representatives. • Academic institutions with labor economics expertise. • Local economic councils and chambers of commerce. • Any groups the bureau deems necessary to complete the study. Effective Date The bill sets out an effective date of July 1, 2025. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. BILL: SB 936 Page 4 D. State Tax or Fee Increases: None. E. Other Constitutional Issues: None identified. V. Fiscal Impact Statement: A. Tax/Fee Issues: None. B. Private Sector Impact: None. C. Government Sector Impact: The study will marginally increase the workload of the bureau; however, the costs of which can likely be absorbed by the department. VI. Technical Deficiencies: None. VII. Related Issues: None. VIII. Statutes Affected: This bill creates an undesignated section of the Florida law. IX. Additional Information: A. Committee Substitute – Statement of Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) None. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.