With the restructuring of social production models by artificial intelligence (AI) technology, intelligent labor has gradually evolved into a new form of labor. While it enhances social productivity, it is also inclined to foster an “illusion of liberation”. From the subject-object perspective, the iteration of intelligent technology entails the data “absorption” of subjects engaged in intelligent labor and the “exclusion” of labor subjects in traditional industries. From the temporal perspective, the algorithmic compression of labor time has not led to the substantive enjoyment of free time; instead, it has subjected the autonomy over time to the logic of capital. From the value perspective, the datafication of labor value, driven by tool rationality, leads to the dissolution of the subjectivity of workers. Intelligent capital, through the logic of algorithms, constructs a new system of domination, exacerbating the complexity of the alienation of the thinking, labor process, and the fruits of their labor. As a result, the liberation of intelligent labor under the combined operation of algorithmic and capital logic becomes an illusion. To achieve genuine labor liberation under the human-centered concept of artificial intelligence, we must seek solutions through strengthening the labor subject, innovating the technological object, and regulating intelligent capital.