👥 Workforce

Senate Passes Bipartisan AI Workforce PREPARE Act: $13M Investment to Study AI's Impact on American Jobs and Prepare Workers for Automation Transformation

📅 12/5/2025 ⏱️ 5 min 📰 PYMNTS.com

The United States Senate has introduced groundbreaking bipartisan legislation designed to prepare American workers for the artificial intelligence revolution sweeping across industries. The AI Workforce Projections, Research, and Evaluations to Promote AI Readiness and Employment (PREPARE) Act represents a crucial step toward understanding and mitigating AI's disruptive impact on the American workforce.

Legislative Investment: The bill allocates $13 million in federal funding over five years to develop comprehensive AI workforce impact assessments and support worker training initiatives across affected industries.

Bipartisan Congressional Response to AI Transformation

Introduced by Senator Jim Banks (R-Ind.) with bipartisan support, the AI Workforce PREPARE Act (S.3339) addresses mounting concerns about artificial intelligence's accelerating adoption across American businesses and its implications for employment stability.

"American workers cannot be left behind as American corporations continue to push forward with the development and adoption of artificial intelligence," Senator Maggie Hassan (D-N.H.) stated in announcing the legislation. "This bipartisan legislation helps the federal government better assess the ways in which artificial intelligence is changing our economy and helps ensure that increased automation does not result in fewer jobs for hard-working American families."

$7M Allocated to NIST (FY26-FY30) for AI task automation benchmarks and occupational impact assessments

Strategic Investment in AI Workforce Research

The legislation strategically distributes funding across two critical federal agencies to maximize research impact and practical applications:

National Institute of Standards and Technology (NIST) Funding

NIST will receive $7 million from fiscal years 2026 through 2030 to develop sophisticated benchmarks measuring AI's capability to automate specific tasks and entire occupations. This research will provide unprecedented granular data on which jobs face immediate automation risk versus long-term transformation.

National Science Foundation (NSF) Innovation Prizes

The NSF will receive $6 million to establish prize competitions focused on forecasting AI's labor market implications and developing innovative solutions for workforce transitions. These competitions will incentivize breakthrough research from academic institutions, private companies, and nonprofit organizations.

$6M Directed to NSF for competitive research prizes on AI workforce forecasting and transition solutions

Addressing the AI Adoption-Preparation Gap

The timing of this legislation reflects growing urgency among policymakers as AI adoption accelerates faster than workforce preparation initiatives. Recent studies indicate that while 92% of companies plan to increase AI investments over the next three years, most lack comprehensive plans for retraining displaced workers.

Senator Hassan emphasized the legislation's focus on proactive preparation: "Understanding how to work with AI will be as crucial as knowing how to use a computer in 2025. This bill ensures we have the data and programs necessary to help workers adapt rather than react to these changes."

Industry Impact: The legislation specifically targets sectors showing rapid AI integration, including finance, healthcare, professional services, manufacturing, and logistics - industries collectively employing over 60 million American workers.

Comprehensive Workforce Transition Framework

Beyond funding research, the AI Workforce PREPARE Act establishes a framework for coordinated federal response to AI-driven workforce disruption. The legislation requires regular reporting to Congress on AI's employment impact and recommendations for additional policy interventions.

The bill also mandates collaboration between federal agencies, state workforce development programs, and private sector stakeholders to ensure research findings translate into actionable training and transition programs for affected workers.

Political and Economic Implications

The bipartisan nature of this legislation signals rare Congressional unity on addressing AI's workforce implications. Both parties recognize that managing AI's transition effectively will determine whether artificial intelligence becomes a tool for economic growth or a source of widespread disruption.

Economic analysts project that successful implementation of the PREPARE Act's research initiatives could save billions in unemployment costs and lost productivity while positioning American workers to benefit from AI-augmented roles rather than face displacement.

5 Years Implementation timeline for comprehensive AI workforce impact assessment and preparation programs

Looking Forward: AI Policy Leadership

The AI Workforce PREPARE Act represents the most comprehensive federal legislative response to AI workforce challenges to date. Its passage would position the United States as a global leader in managing AI transition while protecting worker interests.

As artificial intelligence reshapes entire industries, this legislation provides a critical foundation for evidence-based policy making and worker protection in an increasingly automated economy. The bill's success could serve as a model for other nations grappling with similar AI workforce transformation challenges.

With AI adoption showing no signs of slowing, the AI Workforce PREPARE Act offers American workers and policymakers essential tools for navigating the largest workforce transformation since the Industrial Revolution.

Source: PYMNTS.com