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Cai Fang Says AI Employment Impact Not Yet Obvious, Need to Seize Window for Early Response

2 reports2 story updatesUpdated Oct 26 21:57

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State Council Document Sets the Tone for Mitigating AI Job Displacement, Scholars Propose Solutions

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  1. Cai Fang Says AI's Employment Impact Is Not Yet Obvious, Need to Seize the Window for Early Response

    Source:East Money

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Oct 26

  1. Yicai

    State Council Document Sets the Tone for Mitigating AI Job Displacement, Scholars Propose Solutions

    The General Office of the State Council issued the "Opinions on Adapting to the Development of Artificial Intelligence Technology and Helping to Build an Employment-Friendly Development Model," proposing to enhance the positive effects of AI in creating jobs and empowering traditional positions, and to effectively mitigate its job-displacement impact. The document requires that the scope, intensity, and pace of AI application in labor-intensive industries be grasped prudently and steadily, encourages enterprises to explore an unemployment buffer period system, and improves the income distribution mechanism that adapts to the development of AI technology. Multiple scholars invoked the concept of the "Engels' pause" in discussion, and Cai Fang put forward four propositions including promoting AI equality and cultivating the service industry in advance.

Oct 24

  1. East Money

    Cai Fang: AI's Employment Impact Has Not Yet Shown Up in Macro Data; We Must Seize the Window to Prepare in Advance

    Cai Fang, a member of the Academic Divisions of the Chinese Academy of Social Sciences, said at the 2026 Bund Summit that AI's employment impact has not yet been reflected in macro data, but recruitment data and micro-level links have already shown signs of it. We are currently in a brief quiet period, which is a window to prepare countermeasures in advance. He proposed that AI's improvement of labor productivity follows a J-shaped pattern, and that job displacement may occur before productivity gains. Policy should promote AI equality, guide AI alignment, and cultivate in advance industries with high demand elasticity such as services.

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