The exploitation of the Filipino workforce in the booming artificial intelligence sector through “digital sweatshops” used by so-called micro-tasking platforms highlights ethical concerns and the potential for worker rights violations, an expert said Friday.
But the entry of AI into the workplace is “inevitable” and Filipinos have no choice but to adopt it — not to dictate nor replace manpower, but to be a tool for humans to be productive, the Department of Labor and Employment said in a statement.
In an exclusive interview, Dominic Ligot, technologist and founder of data analytics firm CirroLytix, told Manila Standard that digital sweatshops are not unlike the traditional sweatshops in poorer countries utilized by major foreign brands in first-world nations.
“However, the fact that these setups exist indicates a demand for data services —which is a good thing, and this is an opportunity for the Philippines to professionalize this industry,” Ligot added.
In a statement, DOLE said both employers and employees must learn to accept that AI will eventually impact the labor force. It described sweatshops “as small factories where workers work extremely long hours for very low wages under poor, often illegal, conditions.”
But the department has yet to comment on a recent Washington Post report—in which Ligot was interviewed —that thousands of young Filipino workers, particularly in Cagayan de Oro City, log online every day to support the booming business of AI despite delayed, reduced, or missing wages.
The Department of Information and Communications Technology, which regulates the tech industry, told the Post it wasn’t aware of how much workers make on micro-tasking platforms.
Data annotation is an “informal sector,” said DICT Secretary Ivan John Uy, and “regulatory protective mechanisms are not there.”
“Artificial intelligence is already being used to run machines; craft speeches; compose music; and even create beautiful and authentic-looking landscape blueprints. But there are still some things that it cannot do,” said DOLE Director Lilia Estillore.
She pointed out that even during past administrations, the DOLE and the Department of Trade and Industry have signed agreements that would assure the Philippines’ trading partners globally that there are no sweatshops in the country.
In particular, they signed a joint department order for the accreditation guidelines of garment industry firms that would highlight the country’s compliance with global labor standards.
Digital sweatshops, meanwhile, engage workers in data annotation, often referred to as “crowdwork,” and its workforce faces multiple risks and challenges, Ligot told the Standard.
“Payment discrepancies, including delays, reductions, or cancellations, are widespread issues for workers on platforms like Remotasks, owned by Scale AI (companies highlighted in the Washington Post story),” he added.
These workers “are exposed to substandard labor conditions, including extremely low rates of pay and a lack of labor rights and protections,” Ligot said.