A recent case handled by the Intermediate People's Court of Hangzhou, Zhejiang Province has highlighted the issue of AI replacing human jobs. Mr. Zhou, aged 35, worked as a quality inspection supervisor for a large AI model at a fintech company. His role involved reviewing answers generated by AI during interactions with users.
In January of last year, the company proposed transferring him from his supervisory position to a general operations role, reducing his monthly salary from 25,000 yuan to 15,000 yuan. When negotiations failed, the company directly notified him of the termination of his labor contract. It was only after Mr. Zhou filed for labor arbitration that the company explained the specific reason: due to technological upgrades, the quality inspection work he performed could now be completed by AI, effectively replacing his position.
Throughout the labor arbitration process and subsequent court trials at both first and second instance, the rulings consistently supported Mr. Zhou's claims. The courts determined that the company had unlawfully terminated the labor contract and ordered it to pay compensation exceeding 260,000 yuan. The judgment emphasized that using AI's cost advantages as grounds for dismissal does not qualify as a "significant change in objective circumstances" that would render the labor contract unenforceable. Furthermore, current AI technology has not yet reached a level where it can substantially replace human roles.
Restarting a career in the highly competitive internet industry has proven challenging for Mr. Zhou. He revealed that since his contract was terminated in January last year, he has been unable to secure suitable employment.
Professor Zhang Min from the School of Economics and Management at East China Normal University commented that companies adjusting positions and reducing salaries by introducing AI clearly lack legal legitimacy. Meanwhile, CCTV host Bai Yansong noted that we are living in an era where everyone must confront AI. Technological progress is inevitable, as those who fail to advance will quickly be surpassed. Under the new wave of technological innovation, AI indeed brings efficiency—copy is written faster, blueprints are produced quicker, and code runs more rapidly—creating an impression that everything has accelerated overnight.
From a business perspective, it is understandable for companies to introduce AI in pursuit of cost reduction and efficiency improvement. However, when it comes to social governance, efficiency should not be the sole criterion; it should even take a back seat to protecting workers' rights. The arrival of AI should not immediately lead to job losses for employees.
In this case, the Hangzhou Intermediate Court provided positive guidance: when position adjustments are necessary, priority should be given to training employees, enhancing skills, and facilitating internal transfers, rather than directly dismissing them. This also raises the question of whether relevant regulations need prompt adjustment.
Regardless of how powerful AI becomes, the law must safeguard the boundaries of workers' rights. Companies should not equate the arrival of AI with automatic employee dismissal. Society must act swiftly to build consensus, whether in labor protection or early warning mechanisms. We must ensure that while AI can change the world, it cannot change who the protagonists are—the world's leading roles will always be, and can only be, people.
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