The Chaoyang District People's Court in Beijing recently ruled on a labor dispute involving an employee fired for using AI tools for work. The court found the insurance company's decision to terminate the contract illegal and ordered the company to reinstate the employee and pay outstanding performance bonuses and wages.
The employee, a legal department staff member, uploaded internal audit data to a third-party AI platform in July 2024 to improve efficiency. She acted on a recommendation from her supervisor. The company subsequently fired her, citing a serious violation of internal security policies and the risk of data leakage through the AI model's training process.
The court determined that the company lacked specific regulations prohibiting the use of third-party AI tools. Furthermore, the firm failed to provide evidence that the uploaded files contained core confidential information or that the action resulted in actual data loss or financial damage. The ruling noted that the company's own rules required proof of malicious intent, which was absent in this case.
The presiding judge emphasized that the company could not unilaterally penalize the employee without clear guidelines. The court advised businesses to move away from blanket bans and instead develop comprehensive digital compliance systems. Employees are encouraged to verify company policies before using AI and to avoid uploading sensitive, non-public data to public platforms.
