Navigating the challenges and practical implications of artificial intelligence for employers

At a glance

• China is proactive in Artificial Intelligence (AI) regulation, with significant legislative plans and frameworks introduced, including the Algorithm Provisions, Provisions on Deep Synthesis, and Interim Measures for Generative AI Services.
• A campaign launched in November 2024 aims to enhance governance over algorithm issues, focusing on protecting gig workers' rights.
• Employers must navigate evolving regulations, ensure data privacy and security, and address job displacement and skill development.
• Ethical AI practices are crucial to prevent biases and discrimination in employment decisions.
• Employers must stay compliant with AI regulations and adopt responsible practices to leverage AI benefits while protecting employee rights.

AI is rapidly transforming industries worldwide, bringing significant changes to the workplace and raising important legal considerations for employers. This article explores the latest AI legislative developments in China, the associated employment law challenges, and the practical implications for employers.

Overview of AI governance in China

China has been proactive in establishing a regulatory framework for AI. In June 2023, the State Council announced plans to draft a comprehensive Artificial Intelligence Law, which was included in the legislative plan for 2024.

China has introduced several legal frameworks to govern AI. Key regulations include:

• Algorithm provisions (December 2021): Focuses on data privacy, algorithm transparency, and ethical AI use.
• Provisions on deep synthesis (November 2022): Addresses issues related to deep synthesis technologies.
• Interim measures for generative AI services (July 2023): Aims to ensure ethical and responsible use of AI technologies.

Government action on work scheduling AI

On 24 November 2024, the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Administration of Market Supervision and Administration launched a campaign to enhance governance over algorithm issues on online platforms, running until 14 February 2025. This campaign aims to protect gig workers' rights and create a more equitable labour market.

Challenges and practical implications for employers

• Employers must stay updated on new AI laws and ensure compliance to avoid legal issues. This includes conducting security assessments and registering algorithms where required.
• AI tools can enhance productivity but raise privacy concerns. Employers must balance productivity benefits with employee privacy rights, ensuring compliance with data protection laws like the Personal Information Protection Law.
• Employers must be vigilant about the risks posed by generative AI, advising employees to avoid inputting sensitive information into external AI models.
• AI integration may lead to job displacement, particularly in manufacturing and customer service. Employers should invest in reskilling and upskilling their workforce to adapt to new technologies.
• AI systems may inadvertently perpetuate biases, leading to discriminatory practices. Employers must adopt ethical AI practices to ensure fairness and equality in AI decision-making processes.

China's advancements in AI are reshaping the workplace, bringing both opportunities and challenges for employers. Navigating the complex legislative and regulatory landscape is crucial for leveraging AI's benefits while ensuring compliance and protecting employee rights. By adopting ethical and responsible practices, employers can successfully integrate AI into their operations and drive sustainable growth.