Economy and Exploitation: The AI Industry’s Unjust Labor Practices

I remember when ChatGPT first started gaining popularity. I was a junior in high school, and everyone around me couldn’t stop marveling over its seemingly endless capabilities. The large language model could write essays, answer physics questions, and generate emails out of thin air. It felt to us, sixteen and seventeen-year-olds, like we had discovered magic – a crystal ball that did whatever you told it.

I’m writing this, three years later, to break the news that it is, unfortunately, not magic. Artificial Intelligence (AI) relies on human input at nearly every stage of its preparation and verification. From content moderation to data collection, outwardly automated AI systems require constant human intervention to ensure the algorithm runs smoothly and sensically. This intervention calls for human labor to sift through and manage a given model’s data and performance. But where does this labor come from? And what are the implications of these workers’ invisibility to the public?

Labor Source

On the surface, it appears that Big Tech companies such as OpenAI, Sama, Meta, and Google are bearing the brunt of the labor it takes to develop and operate their AI systems. A closer look reveals that the human labor these AI systems require is distributed across the globe. These massive companies employ subcontractors to hire and manage workers who will perform the countless small, repetitive tasks required. These subcontractors, looking for maximum profit, often hire workers from less developed countries where labor rights are less strictly enforced and wages are not stringently regulated. What does this mean? Cheap, exploitative labor. Those living in poverty, refugee camps, and even prisons have been performing data tasks for subcontractors like Amazon Mechanical Turk and Clickworker. The outsourcing of workers in countries such as India and Kenya by affluent businesses in mostly Western countries seems to perpetuate patterns of exploitation and colonialism and play into global wealth disparities. 

Woman in a chair looking at computer screens
Crowdsourced Woman Monitors Data. Source: Adobe Stock

Wages

On top of the larger systemic implications of wealthier countries’ outsourcing their labor to less affluent countries, the individual workers themselves often suffer human rights abuses regarding wages.

According to the International Labour Organization (ILO), wage theft is a pressing issue when it comes to crowdworkers; this is due to employers denying wages to anyone who is deemed to have completed their tasks incorrectly. Issues with software and the flagging system can result in employers withholding wages due to completed tasks being labelled as incorrectly done. In the ILO’s survey, only 12 percent of crowdworkers conceded that all of their task fulfillment rejections were justifiable, with the majority claiming that only some of them were warranted. In other instances, pay can take the form of vouchers or gift cards, some of which are deemed invalid upon use. Unexpected money transfer fees and hidden fines can also result in wages being lower than initially expected or promised. 

Woman looking at her phone and credit card in shock.
Woman Looks at Her Wages, Which Are Lower than Expected. Source: Adobe Stock

Even if outsourced workers did always get paid correctly, it usually doesn’t amount to much. According to an ILO survey, the median earnings of microworkers were 2 US dollars an hour. In one specific case in Madagascar, wages were as low as 41 cents an hour. These workers are being paid far less than a livable wage under the excuse that their work is menial and performed task-by-task. The denial of wages and the outsourcing companies’ low pay rates violate ‘equal pay for equal work’ under Article 23 of the Universal Declaration of Human Rights (UDHR).

For some in periphery countries like India and Venezuela, data microwork is people’s only source of income. Its convenience and accessibility are attractive to those who don’t have the resources to apply for typical jobs, but its wages do not pay for the decent standard of living that is outlined in the UDHR in Article 25. As one microworker from Venezuela said in an interview with the BBC, “You will not live very well, but you will eat well.” 

 

Working Conditions

In addition to low wages, crowdworkers often face human rights violations regarding working conditions, and most of them are largely unable to access methods to advocate for better treatment from their employers. For those who classify and filter data, a day at work may include flagging images of graphic content, including murder, child sexual abuse, torture, and incest. This was the case for Kenyans employed by Sama and subsequently OpenAI; workers have testified to having recurring visions of the horrors they’ve seen, describing their tasks as torturous and mentally scarring. Many requests for mental health support are denied or not fulfilled. These experiences make workers vulnerable to developing post-traumatic stress disorder, depression, and emotional numbness.

 

Woman covering her face as she looks at a laptop.
Woman Looks At Disturbing Images as She Monitors Data. Source: Adobe Stock

In one instance, the subcontractor Sama shared the personal data of one crowdworker with Meta, including parts of a non-disclosure agreement and payslips. Other workers on Amazon Mechanical Turk experienced privacy violations like “sensitive information collection, manipulative data aggregation and profiling,” and methods of scamming and phishing. This arbitrary collection and abuse of workers’ private data directly violates Article 12 of the UDHR, which enshrines the protection of privacy as a human right.

The nature of crowdwork is such that individuals work remotely and digitally, granting more power to the contractors over their workers and significantly diminishing microworkers’ capacity to take collective action and compromise with employers for better conditions. This independent contractor relationship between employers and employees has weakened the ability for microworkers to unionize and bargain with their contractors. Employers are able to rate crowdworkers poorly, which often results in the rejection of workers when they attempt to find new tasks to fulfill. There are few ways for workers to review their employers’ performance in a similar way, creating an unjust power imbalance between employer and employee, and various violations of labor rights. The possible convenience of self-employment and remote work comes with surrendering basic workers’ rights, such as “safeguards against termination, minimum wage assurances, paid annual leave, and sickness benefits”. Each of these aspects of microwork denies employees the labor rights outlined in Article 23 of the UDHR, another direct violation of human rights by these outsourcing companies. 

What’s Next?

The first step to addressing the human rights violations that are facing outsourced Artificial Intelligence data microworkers is ensuring their visibility. Dismantling the narrative of Artificial Intelligence models as fully automated systems and raising awareness about the essential roles microworkers play in the preparation and validating of data can help garner public attention. Since many of these crowdworkers are employed abroad, it is also important for advocates to highlight the exploitation that these tech companies and contractors are profiting from. In addition, because these workers have little bargaining power, making their struggles visible and starting dialogue with companies on their behalf can be a crucial step towards ensuring that microworkers have access to their human and privacy rights. While research and policy continues to expand regarding AI’s impact on the labor force, it is essential that academics and lawmakers alike consider the effects on the whole production chain, including low-wage workers abroad, rather than just the middle-class domestic workforce. Finally, it is imperative that big tech businesses and the crowdsourcing companies they contract with are held publicly accountable for their practices and policies when it comes to wages, payment methods, mental health resources, working conditions, and unionization. These initiatives can begin only once the public becomes aware of the exploitation of these invisible workers. So, the next time someone throws a prompt at ChatGPT, start a conversation about how reliant AI is on human labor. Only then can we start to grant visibility to microworkers and work towards change.

Karoshi: The Problems with Japan’s Work Culture

A colorful, busy street in Osaka, Japan.
Image 1: Dotonbori Street in Osaka, Japan, Source: Yahoo Images

Japan is famous for its blend of traditional and modern customs, rich culture, and revolutionized technologies. The country has drawn in millions of foreign nationals for its high quality of life, safety, and efficient public transport—but perhaps especially for its employment opportunities.

About 3% of Japan’s workforce consists of foreign workers, having quadrupled in the past 15 years to 2.05 million. On the other hand, Japan’s population has been shrinking, with a steadily declining birth rate and rapid aging. There are many proposed causes for this crisis, including dwindling marriage rates, but it is worth noting the socioeconomic pressures that stem from high living costs, unfavorable job prospects, and a rigid corporate environment.

The labor shortage that Japan faces poses a major threat to its economy—and its historically unforgiving work culture likely plays a big role.

Work Culture in Japan

Work is a highly valued aspect of life in Japan, and with it comes the concept of company loyalty. This can be demonstrated by working many hours overtime; these hours are expected and sometimes even contracted. According to data by Japan’s health ministry, 10.1% of men and 4.2% of women worked over sixty hours a week in 2022.

Tim Craig, a researcher of Japanese culture, said that there is a certain social pressure associated with working overtime hours: “If they go home early, then their colleagues will (a) look askance at them, and (b) have to work more to cover for them. Either way, it’s not a good feeling.”

While Japan’s 2018 Workstyle Reform Act outlawed working more than 45 hours of overtime in a single month, it’s not uncommon for companies to force their employees to hide their true working hours or for employees to even do so of their own accord.

Additionally, only 7% of companies give their employees the legally mandated one day off per week. Japan has been trying to push a four-day work week since 2021, but it will take much more to entirely dismantle the deep-rooted idea that employees must give all of themselves to their company in order to thrive—Panasonic, one of the country’s leading companies, offered the option to 63,000 employees, and only 150 opted in.

A man asleep in a chair in an empty subway stop.
Image 2: A man asleep in a subway station, Source: Yahoo Images

Some companies employ shady business practices, operating what lawyers and academics call a “bait-and-switch” policy: employers will advertise a seemingly normal full-time position with reasonable working hours. The prospective employee is then offered a non-regular contract with longer hours and no overtime pay. If the employee refuses the job, companies might tell them that they will be given regular contracts after around six months. Younger applicants and women are particularly vulnerable due to a lack of experience or settling while trying to re-enter the workforce.

Another common issue is power harassment, which a reported third of the workforce has experienced. This is a common form of workplace harassment that has garnered attention across the past several decades and specifically involves someone in a higher position of power bullying a lower-ranking employee.

In 2020, the Power Harassment Prevention Act took effect, which outlines six types of power harassment, requires companies to take proper action against allegations of harassment, and ensures that workers aren’t dismissed for submitting complaints. However, Nikkei Asia reported in 2021 that complaints about workplace abuse had climbed to 88,000 cases a year, more than tripling in the past 15 years.

While these circumstances are not specific to Japan, they have certainly contributed to a phenomenon that was first identified there: karoshi, or death by overworking.

The History of Karoshi

Karoshi was first recognized in the 1970s and is a sociomedical term used to refer to fatalities or disabilities caused by cardiovascular attacks that are ultimately work-related. This includes strokes, cardiac arrest, and myocardial infarctions. The International Labour Organization’s case study into the phenomenon outlines the following typical case of karoshi: “Mr. A worked at a major snack food processing company for as long as 110 hours a week (not a month) and died from a heart attack at the age of 34. His death was approved as work-related by the Labour Standards Office.”

Related to karoshi is karojisatsu, which is suicide from overwork and stressful working conditions. This issue became prominent in the late 1980s—an economic recession during that decade forced employees who had managed to keep their jobs to work harder for longer hours to compensate.

Factors like repetitive tasks, interpersonal conflicts, inadequate rewards, employment insecurity, inability to meet company goals, forced resignation, and bullying create a psychological burden that has led countless workers to take their own lives. Japan’s white paper report revealed that in 2022, 2,968 people died by suicide linked to karoshi, an increase from 1,935 in 2021.

Hiroshi Kawahito, a workplace accident lawyer, told the Pulitzer Center in 2023 that he has worked on around 1,000 cases of karoshi during a 45-year-period, and despite repeated efforts by the Japanese government to combat suicide rates, he has not identified a significant change in the number of cases.

A group of Japanese citizens protesting karoshi on a street in Tokyo.
Image 3: A “No More Karoshi” protest in Tokyo in 2018, Source: Yahoo Images

He did note two concerning shifts over the course of his career: that karoshi-related suicide has become more common than cardiovascular attack, and that about 20% of his cases are now women, as they have begun to enter the workforce and experience sexual harassment at an overwhelming rate compared to their male counterparts.

A recent case of Kawahito’s from September 2023 involves the suicide of a 25-year-old actress from the musical theater company Takarazuka Revue, who was overworked and bullied by senior members. She logged a total of 437 hours in the final month of her life, of which 277 were overtime.

According to Kawahito, the actress worked without any days off for a month and a half and barely slept more than a few hours a night. Two years earlier, she suffered burns when a senior member pressed a hair iron against her forehead and faced immense pressure from the company. Kawahito claimed that “excessive work and power harassment damaged her physical and mental health, leading to her suicide.”

Governmental Response

Suicide was considered a taboo topic in Japan for decades; families affected were left with no outlet to cope with their loss. However, in 2006, more than 100,000 signatures were collected to push for legislation on suicide prevention, which led to The Basic Act of Suicide Countermeasures that went into effect the same year.

This act takes a three-pronged approach: social systems, local cooperation, and personal support creating relevant laws like the Act on Mental Health and Welfare. It provides support via relevant agencies at local and community levels, including hotlines and consultation services.

In 2016, the Basic Act was amended to require all prefectures and municipalities to establish local suicide prevention plans based on regional data collected by the National Police Agency. The General Principles of the Basic Act are also updated every five years to reflect current trends in suicide data.

The Work Style Reform Act of 2018 aims to promote a healthier work environment, setting overtime limits and establishing paid annual leave, as well as offering free consulting services and subsidies from the labor ministry. This has motivated the push for the four-day workweek, part of the ministry’s “innovating how we work” campaign.

Change might happen slowly in a society where values surrounding dedication and sacrifice are so deeply ingrained in its working population, but it is happening; between 2006 and 2022, the suicide rate has fallen by more than 35%. Efforts by the government to deter karoshi and combat the falling birth rate are in full swing and hope for a better future in Japan is still on the horizon.