AI Deployment in China Causes Job Losses and System Malfunctions
China's rapid AI deployment has caused job losses among workers and triggered concerns about labour market stability. An Apollo Go robotaxi system malfunction in Wuhan in March temporarily stranded passengers and illustrated tensions between automation and worker livelihoods.
What happened
In March 2026, several Apollo Go driverless taxis stopped abruptly on Wuhan streets due to a system malfunction, leaving distressed riders stranded for hours.
The robotaxis were taken off Wuhan's streets for months for investigations following the outage.
Reported impact
Taxi driver Yao Xinnong's wages fell by about 40% since Apollo Go launched in 2022, though they recovered temporarily after the system was taken offline.
Gig workers across China are fearful about AI's impact on their livelihoods as robotaxi deployment threatens their employment. White-collar workers have also reportedly been replaced by AI in recent incidents.
Governance controls
At Shanghai's World AI Conference in July 2026, China's leader Xi Jinping stated that AI should be an important driver for shared prosperity and common security.
China is encouraging AI deployment at an unprecedented scale in a labour market where an estimated 44% of the workforce is in flexible employment, up from 28% in 2019.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.