Sen. Mark Kelly (D-AZ) introduced the Make AI Work for Americans Act, which would put a new price on employers’ use of AI, raising concerns about how new taxes could affect member companies investing in the technology and redesigning work around it.
Why it matters: The bill is one of Congress’ first significant attempts to attach a price tag to AI-driven workforce disruption. While it has virtually no chance of passing before the end of the year, it signals where policymaking is headed in 2027—expect several attempts at similar efforts targeting AI’s impact on jobs, skills and the workforce.
The legislation: The Act would create an “AI Horizon Fund” to support workers affected by AI, funded by three new taxes:
-
5% on digital advertising revenue for large companies that generate greater than $50 million annually.
-
$1.10 for every 1 million units of data output from an AI model.
-
50% on AI developers for profits exceeding 40% of gross receipts in a taxable year.
Where the money goes: Displaced workers could tap the fund for community college retraining, national service programs tied to certifications, small-business startup support, or enhanced unemployment insurance. The fund would also support workforce training, national service and entrepreneurship programs, enhanced unemployment insurance and new AI workplace guidance developed with employer input.
The HR impact: Beyond the taxes, the bill would direct the DOL and EEOC to develop guidelines governing how employers use AI in the workplace, including:
-
Worker/union participation in AI design, procurement, and testing, and notice and consultation before adopting AI that impacts working conditions
-
Algorithmic management and workplace surveillance limits
-
Automated employment decision tools
-
Human review of consequential decisions
-
AI-related job impacts reporting
CHRO Considerations:
Regardless of how the upcoming midterm elections shake out, CHROs should expect the new Congress to undertake several AI policymaking efforts, particularly if and when AI-related job impacts scale up. Expect legislation targeting both developers and users, which would complicate employer AI implementation efforts.
