Will Your Job Soon Be Replaced by AI? – Technological Advancement Meets Labor Law

Artificial intelligence is rapidly transforming the world of work. More and more companies are relying on automated processes and intelligent systems to make their operations more efficient. But what does this mean for employees? Can a company lay off employees simply because AI will take over certain tasks in the future?

AI Labor Law: A Landmark Judgment

A Chinese court recently set a precedent: A company may not dismiss employees solely because an AI system has taken over their previous duties. In this specific case, a quality assurance specialist had been downgraded and his salary reduced by 40 percent after an AI system took over his duties. The employee did not accept this change, was fired, and took the matter to court. His case was successful: The court ruled that technological progress alone does not constitute sufficient grounds for termination or a unilateral salary reduction.

It is noteworthy that this ruling comes from China of all places—a country that is among the global pioneers in the adoption and use of artificial intelligence.

The Legal Landscape for AI in Europe

In Europe, too, the use of AI in businesses is becoming increasingly important. With the AI Act, the European Union has, for the first time, established a comprehensive legal framework to regulate the use of artificial intelligence. Particularly in the context of employment, AI systems are considered high-risk applications and are therefore subject to strict requirements, such as those regarding transparency, documentation, and human oversight.

However, the implementation of these regulations was recently postponed by 16 months and will now take effect on December 2, 2027.

What is already in effect today?

The AI Act regulates how artificial intelligence may be used in decision-making related to employment relationships. However, it does not replace national labor law.

In Germany, the rule remains the same: A termination still requires a legally recognized reason—such as reasons related to business operations, personal circumstances, or conduct. Simply stating that an AI will take over the tasks in the future is not enough.

AI as a Support, Not a Replacement

For companies, this means that artificial intelligence should not be used as a justification for personnel decisions, but rather as a tool that supports processes and reduces the workload on employees.

When used correctly, AI can take over routine tasks, streamline workflows, and free up time for activities where human experience, creativity, and expertise remain indispensable.

More efficiency in the beauty industry

AI is also being used more and more in the beauty industry—for example, for digital skin analyses, personalized product recommendations, or virtual skin consultations. It can analyze skin needs, suggest suitable skincare products, and thus provide valuable support during consultations. At the same time, AI handles tasks such as appointment scheduling and customer communication. However, personal contact, professional expertise, and individualized treatment will remain irreplaceable in the future.

Technological progress is transforming the world of work—both legally and practically. However, the recent ruling from China clearly shows that the use of AI does not relieve companies of their obligations under labor law.

The same applies in Europe: AI can change work processes, but it does not replace applicable labor law or the responsible treatment of employees. The challenge lies in reconciling innovation with workers’ rights.