Chinese court rules companies cannot fire employees over artificial intelligence

A Chinese court has ruled that companies cannot fire workers simply to replace them with artificial intelligence systems, as authorities weigh the need to stabilize the domestic labor market against the global race for artificial intelligence technology.A technology company in eastern China illegally fired an employee after he refused to be demoted after his job was automated by artificial intelligence, a statement from the Hangzhou Intermediate People’s Court said. The court stated in an article on April 28, “The reasons for termination cited by the company do not fall under negative circumstances such as business reduction or operating difficulties, nor do they meet the legal condition of ‘unable to continue to perform the labor contract.'”Citing the same case, the court said in a separate statement that companies cannot unilaterally lay off workers or cut wages due to technological advancements.Chinese companies are racing to implement artificial intelligence systems as part of a state-led push for technology dominance. At the same time, as China faces an economic slowdown and rising youth unemployment, Communist Party planners have expressed a willingness to prioritize labor market stability. (Bloomberg)