Shortly after that, this chili sauce brand continuously denied using AI to replace humans, but only applied this technology to increase labor productivity.

Just one story about the application of artificial intelligence (AI) in production has pushed Lao Gan Ma, a chili sauce brand considered a symbol of China, into the center of controversy. Rumors say that this business reduced the number of workers on a line from more than 600 people to 48 people after introducing AI to classify chili peppers. The wave of protests quickly spread, with some even calling for a boycott of the product.

The story originated from a provincial quality development conference in Guizhou in mid-October. Mr. Li Xin, Deputy General Director and Quality Director of Lao Gan Ma, was quoted by Chinese media as saying that the business had put an AI chili inspection system into operation since last year.

Thanks to this technology, the number of workers on a line is said to be reduced from more than 600 to 48 people, while revenue in 2025 will reach a record 5.4 billion yuan.

The information immediately attracted attention because Lao Gan Ma has an image associated with traditional values ​​and the story of starting a business from ordinary workers. Founder Tao Huabi was once a worker who lost his job, then started selling cold noodles at a roadside stall before building this chili sauce brand in 1997.

Therefore, the story of a business rising from the difficult circumstances of its workers and allegedly using AI to replace hundreds of workers has created mixed reactions. A part of users believes that automation is a normal step forward in industrial production, helping to improve efficiency and maintain uniform quality. However, many people question the responsibility of businesses to workers at risk of losing their jobs.

A widely shared comment on Weibo raises the question: if everything is done by AI and robots, and workers no longer have jobs and income, who will buy the products produced? Some people even called for a boycott of Lao Gan Ma, arguing that businesses cannot only benefit from technology while ignoring the consequences for workers.

In the face of controversy, Lao Gan Ma spoke out to deny the rumored personnel reduction information. A representative of the company's human resources department responded to Chinese media on October 26 that Mr. Li Xin did not mention the number of employees in his speech at the conference. The enterprise's official hotline also denied rumors about large-scale personnel adjustments.

It is worth noting that the AI ​​technology used in production by Lao Gan Ma is not a fabrication. At a facility in Guiyang, an industrial camera system periodically scans the conveyor belt every 0.3 seconds to detect peppers that are moldy or have black spots. Thanks to the automatic testing system, the rate of defective products at an important stage has been reduced to 0.02%.

However, applying AI to quality control does not mean that businesses have fired hundreds of workers.

However, the controversy became even more complicated when users found data showing that the number of workers participating in social insurance at the company had decreased sharply in the past few years. This number is 2,912 people in 2022, 1,783 people in 2023, 941 people in 2024 and 740 people in 2025.

However, the number of people participating in social insurance does not necessarily fully reflect the actual size of the workforce. Outsourced workers, seasonal workers, people working through suppliers or changes in retirement and staff turnover can all impact the figures. Therefore, the above reduction is not enough to prove that AI is the cause of Lao Gan Ma's labor cuts.

Although the information has not been verified, pressure from public opinion has begun to create certain effects. According to data from an e-commerce platform reported by Chinese media, Lao Gan Ma's daily online sales before the rumors appeared usually reached 5,000-10,000 yuan. However, since October 22, multi-day sales are only about 1,000-5,000 yuan. This is data on one platform, and does not reflect the entire business of the brand.

The incident also took place at a time when Lao Gan Ma was maintaining its leading position in the Chinese chili sauce market. Its revenue increased continuously in the period 2022-2024, from 5.26 billion to 5.391 billion yuan. At the controversial conference, the 2025 revenue figure was mentioned as 5.4 billion yuan, the highest in the brand's history.