Company Uses AI to Clone Departed Employees, Raising Legal and Ethical Concerns in China

Thumbnail Image

The information displayed in the AIM should not be reported as representing the official views of the OECD or of its member countries.

Several Chinese companies have used AI to create digital clones of former employees by training models on their work documents and communications. These AI avatars continue performing tasks after the employees leave, sometimes without explicit consent, sparking public outcry and legal warnings over privacy, intellectual property, and labor rights violations.[AI generated]

Why's our monitor labelling this an incident or hazard?

An AI system is clearly involved as the company uses AI to create a digital avatar that performs tasks based on training data from the employee. The event involves the use of AI (use phase) with the employee's consent, so no direct harm has occurred. However, legal commentary highlights potential privacy and personal information rights violations if consent is not obtained, indicating plausible future harm. Therefore, this event qualifies as an AI Hazard because it could plausibly lead to an AI Incident if consent is not properly managed or if the system is misused. It is not an AI Incident because no harm has yet materialized, nor is it Complementary Information or Unrelated as the main focus is on the AI system's use and potential legal risks.[AI generated]
AI principles
Privacy & data governanceRespect of human rights

Industries
Business processes and support services

Affected stakeholders
WorkersBusiness

Harm types
Human or fundamental rightsReputational

Business function:
Human resource management

AI system task:
Content generation


Articles about this incident or hazard