A Chinese court has ruled that companies may not fire their employees simply to replace them with artificial intelligence systems, as authorities juggle the need to stabilize the local labor market with a global race to develop artificial intelligence technologies.A court ruled that a technology company in eastern China illegally fired one of its employees after he refused to be demoted when his job was automated by artificial intelligence, according to a statement from the Hangzhou Intermediate People’s Court. The court said in the article dated April 28: “The reasons for termination stated by the company did not fall under negative circumstances such as reduction in business volume or operational difficulties, nor did they fulfill the legal condition that made it impossible to continue the employment contract.”Companies cannot unilaterally lay off employees or cut salaries due to technological advances, the court said in a separate statement, citing the same case.Chinese companies are racing to implement artificial intelligence systems as part of a state-directed drive to control the technology. Meanwhile, Chinese Communist Party planners have signaled their willingness to prioritize stability in the labor market as the country deals with a slowing economy and rising youth unemployment. (Bloomberg)
