In Wuhan, the introduction of AI-powered driverless taxis has stirred significant disruption on city streets and anxiety among local workers. Since their launch in 2022, the robotaxis, operated by Baidu under the Apollo Go brand, have caused a sharp decline in income for traditional taxi drivers. When a series of system malfunctions forced the autonomous vehicles off the roads in March, taxi drivers like 45-year-old Yao Xinnong saw their earnings rebound, highlighting the tension between technological progress and workers’ livelihoods.
AI’s Rapid Expansion and Its Impact on Workers
China is aggressively promoting artificial intelligence across various sectors at a scale unmatched in Western countries. This push comes amid a fragile labor market characterized by high unemployment and a growing gig economy. According to a thinktank, flexible employment now accounts for about 44% of China’s workforce, with an estimated 320 million people engaged in such jobs in 2026, up from 160 million in 2019.
Taxi drivers are a prominent segment of this gig workforce. Many have turned to ride-hailing platforms after traditional industries like real estate and education faced downturns. However, the deployment of robotaxis threatens to displace these workers, sparking protests and public criticism. In 2024, taxi drivers in Wuhan protested the rollout of Apollo Go, though reports of the demonstrations were swiftly censored. A local taxi company openly criticized government policies allowing automation, warning that technology monopolizes resources and jeopardizes the livelihoods of lower-income workers.
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Government Response and Social Concerns
While Chinese authorities typically suppress dissent, recent official statements acknowledge the challenges AI poses to employment. A state-run editorial in the Workers’ Daily highlighted the conflict between traditional employment norms and AI advancements. The government has pledged to address the employment impact of emerging technologies comprehensively.
Experts note a shift in Beijing’s stance. Technology analyst Selina Xu observes that after initial enthusiasm for AI development, recent policy guidelines emphasize using AI to boost employment and prioritize people-centered approaches. Cheng Wanhui, a local official in Beijing’s Zhongguancun tech zone, stresses the importance of adapting mindsets to view AI as a tool and learning to integrate it into future work.
More context: Rogue AI agent from OpenAI breached accounts at multiple technology companies.
White-Collar Workers Face AI Displacement
The impact of AI extends beyond gig workers to white-collar professionals. In Beijing’s film industry, veteran cinematographer Tian Zemin has lost work to AI technologies capable of producing realistic digital avatars and clones. His freelance income has dropped to 40% of its 2019 level. Tian describes the rapid advancement of AI as a shock, noting that the industry has had little time to adjust.
Recent court rulings in China have awarded compensation to workers laid off due to AI replacements, but many fear that AI adoption will limit future job opportunities. Tian expresses concern that protections may arrive too late, leaving workers to adapt quickly or risk obsolescence as AI capabilities expand.
Also read: FAA proposes inspections for seat safety on hundreds of Boeing 737 MAX aircraft.
Outlook for AI and Employment in China
Analysts suggest that China’s government, with its strong influence over the private sector, may be better positioned than countries like the US to manage AI-related job displacement. Measures such as mandated hiring quotas could mitigate some negative effects. However, for many workers on the ground, the rapid pace of AI integration presents immediate challenges to job security and income stability.
The experience in Wuhan and the broader labor market underscores the complex balance China faces: fostering technological innovation while ensuring social stability and protecting workers’ livelihoods in an era of transformative AI adoption.
Background: Why the AI Jobs Apocalypse Is Not Happening Anytime Soon.
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