Examining the hidden labor economy behind artificial intelligence

Serdar HocamAuthor & Editor

In his new book, Yale professor Julián Posada examines the exploitation in cheap labor markets that produce and label the data fueling artificial intelligence systems.

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Examining the hidden labor economy behind AI

In his newly published book, Julián Posada of Yale University examines the hidden labor economy behind artificial intelligence technologies and the exploitation within cheap labor markets.

Overlooked labor in artificial intelligence

While regulations concerning artificial intelligence technologies and issues like energy consumption are intensely debated, the working conditions of the workers who create massive datasets are frequently overlooked.

A new book written by Julián Posada sheds light on how large digital platform companies employ these workers during data production processes and exposes their conditions.

The concept of platform extractivism

Titled Platform Extractivism, the work argues that the artificial intelligence industry is built upon a global system of exploitation and that labor and knowledge are commodified through digital platforms.

Major artificial intelligence developers outsource fundamental tasks such as data labeling and classification to low-income regions via digital platforms.

The Venezuela example and low wages

The research focuses on Venezuela, which ranked among the top five countries in data production between 2018 and 2023, where workers reported an average hourly wage of $1.73.

The country's deep economic crisis, hyperinflation, and the allure of cheap payments made the region an attractive target for companies, supported by internet and electricity infrastructure.

Wage cycles and barriers to organization

It is noted that companies initially offer high wages or bonuses before subsequently lowering payments, while workers remain geographically dispersed and invisible behind algorithmic systems.

This situation stands out among the greatest obstacles data workers face when seeking rights and demanding higher wages.

Global shift and the need for regulation

As companies shift their operations to English-speaking countries such as India, the Philippines, and Kenya, Posada argues that central nations, led by the United States, must enact regulations to improve working conditions.