Employee fired for using third-party AI for work; court orders company to pay over 46,000 yuan

A legal dispute arose after a legal officer at an insurance company, identified as Ms. Wu, was terminated in July 2024. She had utilized a third-party AI platform, recommended by department and direct supervisors, to assist with office tasks, such as processing and analyzing company audit data, aiming to improve efficiency. Subsequently, the company dismissed her, citing a serious breach of information security regulations. Ms. Wu filed for arbitration with the Beijing Chaoyang District Labor and Personnel Dispute Mediation Committee. The court ruled that Ms. Wu lacked the intent to disclose company secrets, meaning her actions did not constitute a serious violation warranting termination. The final judgment ordered the insurance company to rescind its termination notice and compensate Ms. Wu with over 46,000 yuan, covering lost wages and year-end bonuses. The company's appeal was dismissed by the second-instance court, upholding the original ruling. Evidence revealed that while the company had confidentiality agreements and security policies, none of its internal rules explicitly forbade the use of third-party AI tools, nor were there specific compliance guidelines or training provided for AI usage. The court further noted the company failed to prove the uploaded data was core confidential information or that the action resulted in actual loss or reputational damage.