World of HR: China contends with how to integrate AI into the workplace without losing workers

As leaders increasingly turn to AI to make business decisions, governments are deciding what (if any) guardrails to add.

Where in the world? China, the world’s second most populous country, with 1.4 billion people, is grappling with how to responsibly integrate AI into its culture and workplaces, according to the Wall Street Journal.

The Chinese government has warned companies to watch how they deploy AI and how it impacts the workforce.

The country seems especially concerned about AI’s impact on young workers, who have a 16% unemployment rate in urban areas and limited access to good jobs.

“China is trying to balance between two major priorities: social stability and productivity growth,” Kyle Chan, a fellow at the Brookings Institution, told the Wall Street Journal. “AI as a potentially transformative technology might force Beijing to make hard trade-offs.”

Some courts in China have sided with and awarded financial payouts to workers who’ve sued employers after losing their jobs due to AI. In early May, a Hangzhou court found that AI cannot be used as an excuse to terminate workers, TechRadar reported. However, the court also emphasized that workers should learn new skills so they can adopt new technologies.

“While enjoying the benefits of technology, employers should simultaneously assume corresponding social responsibilities,” an arbitration committee in Beijing said in a 2025 case.

As workplaces in the country continue to adopt AI, some Chinese officials have hinted that employers should provide AI training programs for new graduates and established workers.

Satellite view. In the US, companies like Cisco, Block, and Meta have cited AI as the reason for many layoffs and fewer entry level positions, according to the Associated Press.

Some companies are also assessing the impact AI may have on their businesses and headcounts, the Wall Street Journal reported. DJ Casto, CHRO at Synchrony Financial, told the publication that the company is preparing workers for “redeployments” instead of layoffs.

“We’re going to have to be a lot more agile,” he said. “I talk about this openly in our workforce: We’re going to have to be a lot more comfortable that it’s not going to be so black and white.”