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Could AI take your job? Some workers in China already know the answer
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- DeepHorus
A recent spate of malfunctions involving driverless taxis in Wuhan has brought into sharp focus the mounting tension between artificial intelligence and employment in China. In March, several Apollo Go robotaxis, operated by tech giant Baidu, abruptly halted in the middle of city streets, leaving stranded passengers waiting for hours. The vehicles were pulled from Wuhan’s roads for months during an investigation. But the outage provided temporary relief for 45-year-old taxi driver Yao Xinnong, whose wages had fallen by almost 40% since the service launched in 2022. His earnings rebounded as customers returned, highlighting how deeply AI deployment already affects traditional workers.
The Wuhan episode is a microcosm of China’s aggressive push to integrate AI into everyday life at a scale unseen in the West. Apollo Go first launched in Wuhan in 2022, initially with a small fleet that expanded rapidly. The city became a testbed for autonomous ride-hailing, with Baidu eventually deploying hundreds of self-driving vehicles. For local taxi drivers, the arrival of robotaxis meant increased competition and dwindling incomes. The malfunction in March was an anomaly, but it underscored the fragility of relying on automated systems—and the precariousness of gig workers whose livelihoods depend on human-driven transport.
The broader economic context makes this tension more acute. China’s labor market is already under strain, with high youth unemployment and millions of workers pushed into the gig economy as traditional industries like real estate and education struggle. According to a thinktank, flexible employment is projected to reach 320 million people this year, up from 160 million in 2019—representing about 44% of the workforce. Ride-hailing has become a safety net for many, but the systematic rollout of robotaxis threatens to pull that net away. Drivers like Yao describe a sense of helplessness, with one stating, “If the state really took you into consideration, Apollo Go would never have gone on the market.”
Technically, Apollo Go represents a significant leap in autonomous driving. The vehicles are equipped with a suite of sensors, including LiDAR, cameras, and radar, which feed data into Baidu’s AI algorithms. The system processes vast amounts of real-time information to navigate traffic, obey signals, and avoid obstacles. In Wuhan, these robotaxis operate within designated zones, using HD maps and V2X communication to coordinate with infrastructure. While the technology is impressive, the March incident revealed vulnerabilities: unexpected system malfunctions can cause sudden stops, leaving riders stranded and disrupting traffic. Still, Baidu claims that autonomous vehicles have a driving safety record on par with or better than human drivers, a message echoed by industry proponents.
The implications of AI replacing human labor are both immediate and far-reaching. In the short term, taxi drivers and other gig workers face severe income loss, as evidenced by the 40% wage drop Yao experienced. Over the long term, the issue threatens to exacerbate social inequality and fuel unrest. Young people, already struggling to find stable work, may find themselves displaced by machines that work 24/7 without pay. This has ignited a national debate: should workers embrace AI as a tool for productivity, or compete with it for survival? The answer is unclear, but the urgency is mounting as tens of millions of jobs become vulnerable to automation.
Reactions have ranged from protests to public criticism. In 2024, taxi drivers in Wuhan demonstrated against the Apollo Go rollout, though news of the protests was quickly censored. A local taxi company took the rare step of publicly accusing the government of allowing “technology to monopolize resources and take away the livelihoods of people at the bottom of society.” Meanwhile, state media have begun to acknowledge the problem. An editorial in the Workers’ Daily warned of a “collision between traditional employment rules and the iteration of AI technology,” signaling that even official circles are concerned. The government has pledged to “comprehensively address” the impact of AI on employment, but concrete measures remain vague.
Looking ahead, China faces a delicate balancing act. President Xi Jinping has called AI “an important driver for shared prosperity and common security,” yet the on-the-ground reality is far from harmonious. Policymakers may need to introduce labor protections, retraining programs, or even restrictions on autonomous vehicle expansion in certain areas. Baidu, for its part, defends Apollo Go, arguing that robotaxis can reduce accidents and improve mobility. However, with unemployment already high, the rollout of AI could push more workers to the brink. The Wuhan incident was a warning shot—a sign that the transition to an AI-driven economy will be neither smooth nor painless. What happens next will shape not only the future of work in China, but also how the world navigates the promises and perils of artificial intelligence.
