# China Urges Firms to Cushion Workers From AI-Driven Job Displacement

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/39560
Published: 2026-10-24T02:43:05.000Z
Updated: 2026-10-24T02:43:05.000Z
Section: Regulation

> The guidance encourages advance notice and job-transition support before companies adopt AI at large scale, and calls for carefully managing its use in labor-intensive industries.

China’s State Council General Office has urged companies to reduce worker disruption as they adopt artificial intelligence, laying out advance-notice and job-transition measures for large-scale deployments to limit employment displacement.

The guidance, made public Oct. 23 and dated Oct. 16, calls for carefully managing the scope, intensity and pace of AI adoption in labor-intensive industries. It says companies should seek to reduce the impact on workers as they expand AI use.

Companies are encouraged to explore a buffer period for workers facing possible job losses. Before deploying AI at large scale, they should notify affected workers and provide support to help them transition into other roles.

The opinion calls for prioritizing AI in jobs with labor shortages or hazardous conditions, where it can improve working conditions, safety and efficiency. It also calls for raising workers’ digital skills and employment capabilities, strengthening labor protections and social security, and improving employment services with AI.

The measures include monitoring and issuing early warnings about employment risks linked to AI applications, as well as studying AI’s effects on employment. The guidance aims to expand AI’s role in creating jobs and empowering traditional roles while easing its employment-substitution effects.