A Chinese court has ruled that a company cannot simply fire a worker because artificial intelligence can now do the job more cheaply.
The case involved an employee earning around 25,000 yuan a month.
After the company began using AI to perform much of his work, it offered him another position with significantly lower pay.
He refused.
So the company fired him.
The worker challenged the decision, arguing that replacing him with AI was a business choice, not a valid reason to terminate his employment.
The court agreed.
It ruled that introducing artificial intelligence did not automatically give the company the right to dismiss an existing worker.
The company had chosen to automate.
That did not mean the employee suddenly lost his legal protections.
The decision does not mean China has banned companies from using AI.
Businesses can still automate jobs, restructure departments and introduce new technology.
But they may not be able to use “AI can do it cheaper” as a simple excuse to throw workers out without following labour laws.
As artificial intelligence becomes capable of doing more human jobs, courts around the world are going to face the same question.
Who should carry the cost of automation?
The company that chooses it?
Or the worker whose job disappears?
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