KUALA LUMPUR - China is accelerating the adoption of artificial intelligence (AI) as a strategy to create jobs and support economic growth, even as concerns mount over potential labour displacement.

The push comes as China seeks to offset the impact of an ageing population and a slowing economy.

Plans outlined during the annual parliamentary session emphasise AI’s potential to generate employment over the next five years, as reported by Reuters on March 10. 

Officials are prioritising expansion of AI capabilities rather than pre-emptively addressing job losses.

Shujing He of Plenum said policymakers are focusing on the technology’s positive impact while retaining flexibility to respond to labour disruptions.

“For now, advancing AI adoption and capability appears to be a higher policy priority than pre-emptively addressing potential job displacement,” she said.

Human Resources Minister Wang Xiaoping said the government is working to “actively leverage” AI to create jobs.

She added that the effort is aimed at supporting employment opportunities for 12.7 million university graduates this year.

The International Monetary Fund estimates that AI could affect nearly 40 per cent of global jobs, rising to 60 per cent in advanced economies.

Research from Stanford University suggests the technology is already having a significant impact on labour market entrants.

Some analysts, however, remain cautious about the outlook.

Alicia Garcia-Herrero of Natixis warned that automation could suppress wages and worsen youth unemployment.

“If China does not introduce any kind of universal basic income, there is no way the Chinese population can cope with this shock,” she said.

Executives at state-owned enterprises said AI adoption is likely to trigger major restructuring.

Zhu Huarong, chairman of Changan Automobile, said the technology could transform the auto sector into a “sunrise industry”.

Chinese universities are also adapting to the shift by revising curricula.

ShanghaiTech University has introduced AI-focused micro-majors to equip students with skills less vulnerable to automation.

Provost Yin Jie said critical thinking and creativity will be key differentiators.

“We must train them to ask questions.

“If your thinking isn’t sharp, you won’t beat the robots,” he said.

Analysts said China is focusing on reskilling and talent development rather than framing AI as a zero-sum trade-off with employment.

The strategy is driven by demographic pressures, with about 300 million people expected to retire over the next decade.

Authorities are also aiming to boost productivity to support long-term growth.

The government recently set a GDP growth target of 4.5 to 5 per cent, the lowest since the 1990s.

AI deployment is being expanded beyond manufacturing into sectors such as services through industry-specific models.

Some academics have warned that job losses could outpace job creation in the short term.

Labour economist Cai Fang said technological change may lead to prolonged employment shocks.

He called for greater investment in human capital and stronger social protection measures.

A Beijing court has ruled that dismissing workers solely to replace them with AI is illegal.

However, technologies such as robotaxis and autonomous delivery systems are already beginning to affect certain jobs.

State media have highlighted breakthroughs such as new AI video generation tools as major milestones.

Entrepreneurs are also using AI-driven platforms to automate online businesses and create single-person enterprises.

Analysts said the rapid spread of such tools reflects both opportunity and growing anxiety over employment.