The Hangzhou Intermediate People’s Court in China has ruled that companies cannot use AI automation as a blanket justification for layoffs. This landmark decision arose from a case involving a senior quality assurance supervisor whose role was diminished due to AI advancements. The court found that the employer failed to prove that the job was impossible to perform and deemed the reassignment offer of a lower-paying position as unreasonable. This ruling emphasizes the need for fairness and accountability in the face of technological change, setting a legal benchmark that could influence how AI job losses are managed globally. By focusing on the responsibilities of employers, the court challenges the narrative that AI displacement is an unavoidable external force, suggesting that companies must absorb the costs of transition through fair compensation and retraining. The ruling may prompt similar legal interpretations in Western jurisdictions, where regulatory responses have been more cautious and less defined. Ultimately, the Hangzhou ruling reaffirms the importance of human roles amidst rapid technological advancements.