In a landmark ruling, a court in Hangzhou, eastern China, awarded 260,000 yuan (over £28,000) to Zhou, a quality assurance supervisor who was fired after his job was replaced by artificial intelligence (AI). Zhou had joined the unnamed tech company in 2022, overseeing large language models used in AI products. When the company proposed a demotion and a 40% pay cut instead of termination, Zhou refused and was subsequently dismissed. The Hangzhou intermediate people’s court ruled last month that the dismissal was unjustified, highlighting the need for companies to balance AI adoption with employee rights. This case has gained traction as China grapples with a youth unemployment rate of 17% among those aged 16 to 24. The ruling has been interpreted as a positive step for labor rights amid the rapid integration of AI in various sectors, as public sentiment in China remains largely optimistic about AI's potential benefits. Experts note a shift in government messaging, indicating a growing recognition of the risks associated with job losses due to automation.