Lao Gan Ma Denies AI Replaced 600 Workers
SingTao · 2 SOURCESabout 3 hours ago2 MIN
Summary
Chinese chilli sauce brand Lao Gan Ma has pushed back against online claims that it used artificial intelligence to replace more than 500 workers after deploying an AI visual quality inspection system. The controversy followed remarks by executive vice-president and chief quality officer Li Xin at the 2026 Guizhou Province Quality Development Conference, where he said a production line that once had more than 600 pepper-sorting workers now retained 48 experienced staff. As the claim spread across Chinese social media and self-media accounts, some consumers called for a boycott and the topic trended on October 26. The company’s customer service staff said on October 26 that reports of AI-driven layoffs were false and urged consumers to view the issue rationally.
Key Points
- Sing Tao reported that Lao Gan Ma introduced AI inspection technology, cut defect rates and saw annual revenue rise to RMB5.4 billion last year
- Li Xin told the Guizhou quality conference that after the system went live, only 48 workers remained from a line previously staffed by over 600 sorters
- After that disclosure, many self-media posts claimed Lao Gan Ma had dismissed more than 500 workers through AI, rapidly fuelling online backlash.
- Some internet users said, in effect, that if the company made workers jobless, consumers would remove its products from shelves
- am730 cited third-party platform data showing daily sales on one e-commerce platform fell from RMB5,000-10,000 to RMB1,000-5,000 after October 22
Why It Matters
For Hong Kong readers, the episode shows how quickly AI adoption can become a reputational and consumer-trust issue when companies emphasise efficiency gains without clearly explaining workforce arrangements. It also underlines the commercial risk for mainland consumer brands sold in Hong Kong when online narratives about automation and jobs spread faster than official clarifications.