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the hidden human cost of Artificial Intelligence

Basics – Context of the News

  • Automated Economy: Refers to increasing reliance on Artificial Intelligence (AI) and Machine Learning (ML) systems to perform tasks once handled by humans.
  • Core Issue: While AI is seen as “self-learning” and autonomous, it is fundamentally dependent on invisible human labour—especially data annotators, moderators, and gig workers.
  • Why It Matters:
    • Challenges the myth of AI being “self-sufficient.”
    • Raises ethical concerns on exploitation of low-paid workers in the Global South.
    • Brings labour rights and digital economy regulations into the AI governance debate.

Relevance:

  • GS-III (Economy, Science & Technology):
    • Future of work, gig economy, labour market disruptions.
    • AI, ML, and automation ethics.
  • GS-II (Polity & Governance):
    • Labour rights, regulation of digital platforms, global supply chains.
  • GS-I (Society):
    • Social impact of digital labour exploitation in developing countries.

Human Involvement in AI Development

  • Data Annotation:
    • Essential for training AI models—labelling text, images, video, and audio.
    • Example:
      • LLMs (ChatGPT, Gemini) learn meaning from labelled datasets.
      • Self-driving cars need human-labelled data to distinguish pedestrians vs. traffic signs.
  • Training Process of LLMs:
    • Self-supervised learning → machine consumes raw internet data.
    • Supervised learning → annotators refine the dataset.
    • Reinforcement learning → humans provide feedback on AI responses.
  • Specialised vs. Non-specialised Tasks:
    • Some require domain expertise (e.g., medical scans, legal texts).
    • Many companies hire non-experts to cut costs → leads to errors in outputs.
  • Invisible Labour in “Automated” Features:
    • Content moderation on social media → done by humans reviewing graphic/violent material.
    • Voice and video AI → trained on performances by actors, including children.

Ghost Work – Definition

  • Ghost work refers to the invisible human labour that powers supposedly “automated” digital technologies such as Artificial Intelligence (AI), Machine Learning (ML), and online platforms.
  • It includes microtasks like data annotation, content moderation, labeling images/videos/text, training AI models, or cleaning datasets, often outsourced to low-paid workers in developing countries.
  • The term highlights how these workers remain uncredited, underpaid, and hidden behind the façade of automation, even though their labour is indispensable to AI systems.

Nature of Exploitation

  • Geography of Ghost Work: Primarily outsourced to Kenya, India, Pakistan, Philippines, China.
  • Wages and Conditions:
    • Reported pay: <$2/hour for 8+ hours.
    • Exposure to disturbing content → PTSD, depression, anxiety.
    • Tight deadlines, surveillance, microtask-based pay.
  • Labour Rights Violations:
    • Companies circumvent local labour laws by outsourcing through intermediaries.
    • Lack of transparency: workers often don’t know which Big Tech firm they are serving.
    • Union busting and dismissal of workers raising concerns.

Larger Structural Concerns

  • AI’s “Dependence Myth”: Automation narrative hides human labour inputs.
  • Global Inequality: Wealth and value captured in Silicon Valley, while labour exploitation occurs in the Global South.
  • Informalisation of Digital Labour: Microtasking, subcontracting, gig-work fragmentation → workers have no bargaining power.
  • Ethical & Social Costs:
    • Mental health deterioration of moderators.
    • Risk of bias/errors in AI outputs due to underqualified annotators.
    • Potential exploitation of children in data collection.

Policy and Regulatory Implications

  • Transparency in AI Supply Chains: Companies must disclose labour networks behind AI models.
  • Fair Wages and Labour Rights: Align digital work with ILO standards (decent work, safe conditions, collective bargaining).
  • Global Governance of AI Labour:
    • UN/ILO frameworks for digital gig work.
    • Regulation of cross-border outsourcing and labour practices.
  • National-Level Actions:
    • Countries like India/Kenya/Philippines need to update labour laws for gig/digital workers.
    • Formalisation of data annotation industry with minimum wage guarantees.
  • AI Governance Debate Expansion: Current focus is on AI ethics, privacy, bias → must include labour justice.

Overview

  • Polity: Raises questions of labour rights, regulation of Big Tech, role of unions.
  • Economy: Exploitation lowers wages globally, undermines sustainable digital economy.
  • Society: Hidden suffering of moderators and annotators shapes the “clean” digital experience of billions.
  • Ethics: Transparency vs. corporate secrecy in AI supply chains.
  • International Relations: North-South divide in AI’s economic benefits vs. labour burdens.

Way Forward

  • Recognise “ghost workers” as integral to AI development.
  • Establish global labour standards for AI-linked work.
  • Strengthen worker protections: fair pay, mental health support, right to unionise.
  • Push for AI supply chain audits just like environmental/ESG audits.
  • Shift narrative from “AI is replacing humans” to “AI is built on human labour”.

September 2025
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