July 31, 2026

Artificial intelligence booms in China

The Guardian - China is encouraging the deployment of AI at a scale unseen in the west. The technology is being rolled out at a staggering rate in an increasingly precarious labour market, and the Wuhan episode helped to highlight the social tensions it is causing.

Gig workers … are fearful about the impact of AI on their livelihoods, while recent incidents of white-collar workers being replaced by AI have also sparked a debate over whether workers should embrace the technology – or try to compete with it.

Addressing Shanghai’s World AI Conference in July, China’s leader, Xi Jinping, said that AI should be “an important driver for shared prosperity and common security”.

But that goal is being pursued amid an increasingly fragile labour market. As well as suffering from high levels of unemployment, China has seen tens of millions of workers drop out of formal employment into the gig economy. According to one thinktank, the number of people in flexible employment will rise to 320 million this year, up from 160 million in 2019. That is about 44% of China’s workforce.

Taxi drivers are one part of this huge cohort. Across the country, as previously heavyweight industries such as real estate and education have floundered, workers have turned to ride-hailing apps to make ends meet. But now the rollout of robotaxis, one of the most popular applications of AI that is already in use in China, is threatening their livelihoods.

 


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