The Dark Side of China’s AI Ambitions

The recent malfunction of driverless taxis in Wuhan has exposed a ticking time bomb in China’s labor market: the consequences of embracing artificial intelligence without considering its impact on workers’ livelihoods. As China accelerates its AI development, it becomes increasingly clear that the benefits are being reaped by tech giants and investors while ordinary people like taxi drivers Yao Xinnong are left to pick up the pieces.

Yao’s experience is not unique. With over 40% of China’s workforce already employed in precarious gig economy jobs, the rollout of robotaxis has been a major blow to their livelihoods. The state-owned Workers’ Daily editorial noted that employment rights are facing new challenges in the age of AI, and the government has started echoing concerns first voiced by Wuhan drivers two years ago.

This issue affects millions of workers across China. The country’s labor market is already fragile, with high levels of unemployment and tens of millions of workers dropping out of formal employment into the gig economy. According to thinktanks, 44% of China’s workforce will be in flexible employment by this year, leaving many vulnerable to the whims of tech companies.

The government’s response has been lukewarm at best. Xi Jinping touted AI as an “important driver for shared prosperity and common security” last July, but recent court rulings awarding compensation to laid-off white-collar workers suggest that Beijing is starting to take notice of the social tensions caused by AI. Analysts like Selina Xu argue that there’s been a shift in Beijing’s approach, with more emphasis placed on AI for boosting employment and people-first approaches.

However, words are cheap; action is what matters. So far, the government has pledged to address the impact of AI on employment but has yet to take concrete steps to protect workers’ rights. Cheng Wanhui promised that authorities would “shift their mindset” and learn how to apply AI in future work, but this promise rings hollow without tangible policies to support workers who have been displaced by automation.

The film industry is another sector where AI is causing chaos. Cinematographer Tian Zemin lost his job due to the emergence of software. “I thought I would spend my whole life in this industry,” he said. “But the emergence of AI has made me feel a huge shock for the first time.” His rate as a freelancer has plummeted by 60%, and many of his peers are facing similar struggles.

China’s ability to contain the fallout from AI-related job losses is often touted as its advantage over Western countries like the US, where government control over the private sector is limited. However, this assumption ignores the complexities of China’s labor market and the long-term consequences of prioritizing technological progress over human needs. The Wuhan driver protests in 2024 showed that ordinary people will not quietly accept being pushed out by automation.

The Chinese government has a choice to make: it can continue to prioritize AI development at any cost or take a step back to reevaluate its impact on workers’ livelihoods. The former may yield short-term gains but will ultimately exacerbate social tensions and widen the gap between tech elites and ordinary people. It’s time for Beijing to acknowledge that AI is not just a tool, but also a reflection of our values as a society.

The fate of China’s labor market hangs in the balance, and it’s up to the government to take decisive action to protect workers’ rights. Anything less would be a betrayal of the trust placed in them by the people who will bear the brunt of AI’s consequences.