AI's Impact on Employment and Legal Challenges in China

The Employment Replacement and Legal Challenges of AI Era

The rapid development of artificial intelligence (AI) raises pressing questions about job displacement and the rights of workers affected by this technology. Chinese President Xi Jinping has emphasized the need for inclusivity in the face of technological advancements, highlighting the importance of balancing fairness, efficiency, capital, labor, technology, and employment. The 2023 “Global AI Governance Initiative” advocates for fairness, human-centered approaches, and the positive direction of AI development, ensuring it aligns with universal values of peace, development, justice, and democracy.

The historical context of technological revolutions shows that significant advancements can greatly enhance productivity while also displacing existing workers, potentially leading to structural unemployment. Thus, the challenge of protecting employment rights in the face of AI-induced job displacement is a critical issue for contemporary governance.

AI’s Replacement of Workers

AI could replace workers across a broad range of sectors, including manual labor, intellectual work, and even creative tasks.
The scale of job displacement due to AI could be extensive.
The impact of AI on employment may be global, with developed countries facing initial challenges, while developing nations may experience greater long-term effects.
The application of AI technology may not only reduce the number of available jobs but also alter the nature and organization of work.

Employment rights refer to the entitlements of unemployed workers seeking to establish professional relationships, including state support and the right to choose jobs freely. Historically, automation affected specific industries, allowing displaced workers to transition to emerging sectors. However, the widespread replacement of human labor by AI poses risks of frictional, structural, cyclical, and technological unemployment simultaneously. This situation threatens the fundamental right to fair employment, making it increasingly difficult for states to create equitable job conditions and provide support during unemployment.

Balancing AI Development and Employment Rights Protection

The relationship between technological change and employment has been a continuous concern, but the unique challenges posed by AI may represent unprecedented difficulties. To prevent and address conflicts between AI development and employment rights, comprehensive consideration of intertwined interests and conflicting values is necessary.

Regulating the AI Industry

While AI technology can enhance societal wealth and help alleviate poverty, legislative regulation is essential to prevent large-scale job displacement. The “AI Safety Governance Framework” released in September 2024 emphasizes the need for effective emergency control measures and the management of AI’s ultimate applications to prevent misuse and ensure adherence to human-centered values. Legislative measures should be proportionate to the risks posed by AI, ensuring that regulations do not hinder technological innovation.

AI and automation can enhance manufacturing capabilities and attract investment, resulting in increased profits and market expansion. However, studies indicate a trend where declining employment among industrial workers coincides with rising output. Legislation should not only aim to improve economic efficiency but also consider the ethical implications of work and employment as sources of income and personal fulfillment.

Promoting Human-Machine Collaboration

Policies should encourage collaboration between AI and humans, as outlined in various international documents. For instance, UNESCO’s 2021 recommendations advocate for collaboration among governments, educational institutions, and industries to bridge skills gaps and align training with future job demands. Legal reforms should focus on integrating AI into existing frameworks, ensuring that AI is viewed as a collaborator rather than a replacement for human workers.

Employment Promotion and Unemployment Assistance

Since the 1970s, technological advancements have led to structural and technological unemployment, necessitating proactive employment policies. Countries are increasingly exploring ways to ensure employment while enhancing social security laws to address potential large-scale unemployment due to AI.

Future legislation must prioritize employment promotion and assist workers affected by AI displacement. The 2019 report by the Global Future of Work Commission emphasizes comprehensive protections for all workers, regardless of their employment status.

Legislative Principles for Balancing AI Development and Employment Rights

Development Principle

The development of AI should enhance economic growth and social welfare while ensuring the prevention of risks and promotion of fairness.

Employment Priority Principle

The implementation of an employment-first strategy is crucial, as highlighted by recent governmental reports.

Special Protection Principle

Legal protections for employment rights should include special measures for disadvantaged workers, ensuring that those most affected by AI advancements receive necessary support.

Specific Institutional Designs for Balancing AI Development and Employment Rights

The social security systems established since the 20th century are based on the premise of employment as the norm and unemployment as the exception. However, in the AI era, unemployment may become a new norm, necessitating a reevaluation of existing legal frameworks.

Improving Labor Laws

Expand the scope of labor law to address the challenges posed by AI.
Establish clear standards for layoffs due to technological advancements.
Enhance legal frameworks for skill development and retraining.
Create public sector job opportunities for workers unable to adapt to digital transformations.

Clarify the government’s role in social security.
Strengthen labor rights protections through stringent enforcement of social insurance contributions.
Optimize social insurance systems for non-employed individuals.

Reforming Taxation Systems

Adjust corporate tax burdens for AI companies.
Consider new taxes for businesses utilizing AI technologies, ensuring funds support displaced workers.
Implement government funds for specific AI producers to assist those affected by job displacement.