White-Collar Workers Turn to AI Training Amid Job Market Challenges

The current job market is pushing many white-collar workers to take on roles in artificial intelligence (AI) training, despite the inherent risks of being replaced by the very technologies they help develop. In Surrey, B.C., Daniel Burton spends his days conducting quality checks on videos created by an AI video generator. His responsibilities include identifying visual errors and assessing the performance of AI models. This role, which pays US$30 an hour through TekSystems Inc., highlights a broader trend where professionals find themselves in precarious positions within the evolving tech landscape.

Burton began his journey in AI training in 2024, viewing it as an entry point into the rapidly growing field. Yet, he remains acutely aware of the long-term implications of his work. “With AI data annotation and training, it is going to vanish eventually … because these are entry-level positions to get AI models off the ground,” he noted. This sentiment underscores a paradox where workers are training the very machines that could ultimately displace them.

The demand for human input in AI development has surged, with major tech companies reportedly spending over US$1 billion annually on data labeling and annotation. Initially, this work was outsourced to countries in Africa, Asia, and Latin America at low wages. However, as competition intensifies among tech firms to create sophisticated AI models, there has been a noticeable shift towards hiring skilled workers in North America and Europe. Many of these professionals are facing layoffs and hiring freezes, prompting them to accept roles in AI training to maintain financial stability.

Burton’s experience with Invisible Technologies Inc. exemplifies the volatile nature of these positions. Hired at US$21.50 an hour, he was tasked with labeling objects in videos for an undisclosed major client. His contract was terminated once the AI model was deemed sufficiently developed, leaving him and his colleagues without jobs. “A lot of people have post-traumatic stress disorder with that kind of work,” he explained, reflecting on the emotional toll such instability can take. Tragically, one of his team members faced dire consequences after prolonged unemployment.

As AI continues to infiltrate white-collar jobs, companies are simultaneously laying off employees across various sectors while hiring for AI training positions. For instance, Mercor.io Corp., valued at US$10 billion in October 2023, has expanded its contractor network to include professionals from diverse fields, including medicine and law. This dramatic shift illustrates the complex dynamics of the job market, where the rise of AI creates both opportunities and threats.

Many individuals view AI training jobs as a means to gain valuable experience in the tech industry, despite their often contract-based nature. Vancouver-based software developer Farouk Alsajee transitioned to freelancing as an AI trainer, finding the knowledge he gains essential for future career growth. Similarly, Falguni Saini, another Vancouver resident, embraced her role as an AI tutor to improve her programming skills, viewing it as a stepping stone to a more stable career.

In contrast, workers like Dani Morera Trettin, a Columbia University graduate, express frustration with the job market. Despite being fluent in eight languages and having relevant internships, he has struggled to secure a full-time position for over a year. The AI training jobs he has taken on were born out of necessity rather than career ambition, highlighting the desperation many face in today’s economy.

A 2024 study by the European Microworkers Communication and Outreach Initiative (EnCOre) found that many “microworkers” take on low-paid AI data labeling jobs due to unemployment and inadequate salaries rather than to develop new skills. The recruitment processes for these positions are often automated, leaving workers vulnerable to shifting project requirements and inadequate communication.

“These schemes seem particularly cruel considering the current circumstances for workers like creatives and writers at the moment,” Morera Trettin remarked. “It seems like talent and hard work don’t matter anymore.”

The rise of gig work in the AI sector poses significant challenges for workers, particularly those with specialized skills. Julie Yijie Chen, an associate professor at the University of Toronto, notes that the subcontracting nature of these jobs exacerbates the precarious conditions faced by workers, often leaving them feeling disposable despite their qualifications.

Meanwhile, companies like Scale AI have faced allegations of labor violations from former workers, including failure to pay fair wages. Investigations into their labor practices highlight the ongoing struggles within the industry, where workers are often bound by non-disclosure agreements that limit their ability to advocate for better conditions.

As AI technology continues to advance, experts warn that the transition may result in significant job losses across various sectors. Joel Blit, an economics professor at the University of Waterloo, emphasizes the need for specialists to guide AI development in fields such as finance and law. “It’s the next logical step,” he remarked, recognizing the dual-edged nature of this technological evolution.

Despite the uncertainty, some workers view their current roles in AI training as opportunities to gain experience and knowledge that could lead to more stable career paths in the future. Burton, for instance, aims to leverage his experience as an AI trainer to transition into a full-time role in AI development. “I’m trying to get as much experience as I can and use the benefits that I have to get a head start,” he said.

As the job landscape continues to evolve, the intersection of AI development and employment raises critical questions about the future of work. While some professionals may find new opportunities in this shifting environment, others face the reality of job displacement and the challenges that come with it. The ongoing evolution of AI will undoubtedly shape the workforce in the years to come, highlighting the need for careful consideration of its implications for workers across all sectors.