Will ‘AI Victims’ Initiate Legal Battles Now?

While employees are under a continuous threat of termination due to the onslaught of artificial intelligence, a Chinese court has ruled that companies cannot ruthlessly fire employees just because their job could be performed by artificial intelligence (AI), kindling a hope for the AI victims that their voice could be raised to make it audible. The Chinese court said that automation alone does not become a valid ground for laying off employees.

According to national media reports, the ruling was issued by the Hangzhou Intermediate People’s Court, which upheld a tribunal decision in favour of an employee removed after his work was automated partially, using large language models.

The ruling by the Chinese court is most required during the AI-driven uncertainty in the job market, as the judge stressed that authorities need to stabilize the domestic labour market, alongside contemplating steps to compete in the global race to develop AI technologies.

The court ruling seems to provide at least a flickering light at the end of the tunnel for the AI victims, indicating that they too should approach the courts and fight legal battles.

The ruling provides some succor to the employees who are being left in the lurch when laid off, despite investing significant energy and time in the jobs. The Hangzhou court said that companies cannot unilaterally lay off employees or cut salaries due to technological progress.

The employee at the centre of the case is a quality assurance professional at a tech company with his surname as Zhou. He joined with a monthly salary of 25,000 yuan.

He was responsible for checking the accuracy of outputs by large language models. When his job was overtaken by AI system, he was demoted and reassigned to a lower-paying role with a reduced salary of 15,000 yuan. Zhou reportedly rejected the offer, calling it unreasonable.

After he refused to take up the low-paying role, the company terminated his employment citing organizational restructuring, offering some compensation. Zhou challenged both his dismissal and compensation in the court, which declared the termination unlawful.

This is not the first case in China where the court gave a ruling in favour of the employee. Earlier, a map data worker was also dismissed after his role was automated and the court held that AI replacement alone cannot justify removal. Can this Chinese court verdict become a precursor for more legal battles?