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AI meets the street

Wuhan taxi driver earns more as AI robotaxis halted

Yao Xinnong’s hourly pay rose after autonomous taxis stopped operating in Wuhan.
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For 45-year-old taxi driver Yao Xinnong, the recent malfunction of driverless vehicles in Wuhan brought a moment of relief. His wages, which had declined by nearly 40% since the introduction of AI-powered Apollo Go in 2022, rebounded as passengers returned to conventional taxis. The incident demonstrated the growing tensions between emerging technology and traditional workers, with Yao expressing his dislike for the driverless vehicles. “I don’t really like them, to be honest,” he said.

China’s rapid deployment of artificial intelligence is occurring amid a turbulent labor landscape. As the economy faces uncertainty, millions of workers have moved from stable jobs to the gig economy, with the number of people in flexible employment rising from 160 million in 2019 to an estimated 320 million in 2024. This shift has left many workers, including taxi drivers, vulnerable to automation. The AI-powered Apollo Go service in Wuhan exemplifies how technological advancements can directly impact traditional livelihoods, causing distress among gig workers.

The malfunction of the robotaxis in Wuhan exposed the social tensions emerging from AI's rapid growth. Local drivers questioned whether technological progress was being prioritized over their livelihoods. One driver expressed skepticism, saying, “If the state really took you into consideration, Apollo Go would never have gone on the market.” Another driver warned that if automation continued unchecked, ordinary workers like her might struggle to survive in the evolving labor market.

In 2024, tensions reached a peak in Wuhan when protests erupted against the rollout of Apollo Go. While exact numbers of participants remain unknown due to censorship, the incident highlighted the growing dissatisfaction among workers. A local taxi company took an unusual step by publicly criticizing government policies that supported autonomous vehicles, accusing tech firms of monopolizing resources and displacing workers. The company’s bold stance reflected the frustration of many who felt their jobs were being threatened by automation.

The government’s initial enthusiasm for AI development has recently given way to a more cautious approach. A state-run publication, the Workers’ Daily, published an editorial warning of the new challenges AI poses to traditional employment. The government has pledged to “comprehensively address” the impact of AI on jobs, signaling a shift in policy priorities. This change reflects the influence of worker concerns that were once overlooked.

Selina Xu, a China technology analyst, observed a “major vibe shift” from Beijing, noting that the emphasis on AI has now expanded to include considerations for employment and people-first approaches. In a similar vein, Cheng Wanhui, an official in Beijing’s hi-tech zone of Zhongguancun, emphasized that authorities are “paying close attention to the social issues AI brings, as well as potential ethical concerns.” This evolving stance suggests a growing recognition of the need to balance technological progress with societal well-being.

Concrete actions have also been taken to address the impact of AI on workers. Recent court rulings have awarded compensation to white-collar employees who were laid off as their roles were replaced by AI systems. These developments indicate that the government is beginning to address the concerns of workers who feel left behind by rapid technological change.

Uncertain Future for Drivers

While the temporary malfunction of the robotaxis provided a reprieve for drivers like Yao Xinnong, their concerns about the long-term impact of AI remain. One Wuhan driver expressed fear that, despite the benefits of scientific progress, workers might ultimately be left behind. Her words reflect the uncertainty and anxiety of many who find themselves caught between technological advancement and job security.

The government’s evolving position on AI and its impact on employment suggests that finding a balance between innovation and worker welfare is becoming a central challenge. As China continues to push forward with AI development, the experiences of workers in Wuhan and elsewhere will shape the policies that govern the future of the labor market. How this balance is achieved will be crucial for millions of workers in a rapidly changing economic landscape.

Based on reporting by Guardian Business, compiled by the Tradingbird newsroom. Published 31 Jul 2026, 05:47.
Topics: Deals · Earnings · Jobs

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