How Lao Gan Ma, China’s iconic chilli brand, got caught in an AI storm

Lao Gan Ma, a company long associated with traditional food manufacturing in China, became an unexpected focal point for public anxiety surrounding artificial intelligence. Viral claims circulated online that the Guizhou-based firm had made significant job cuts, specifically replacing factory workers with AI technology.

The core of the speculation centered on the chilli-sorting process, alleging that the workforce was drastically reduced from more than 600 individuals to just 48 following the introduction of an AI-powered inspection system. In a manufacturing setting, such a system would typically involve automated visual or sensor-based checks for quality, sorting, or defect detection, tasks traditionally performed by human labor.

These unverified claims quickly prompted public backlash, including boycott threats, on social media. This swift and strong reaction highlights a broader public unease in China regarding the potential impact of automation and AI on employment, particularly in established industries where perceived job displacement can generate significant concern, even without official company confirmation.