Wednesday, July 30, 2025

Is the Era of ‘Sweatshop Data’ Finally Coming to an End?

Welcome back to “In the Loop,” TIME’s twice-weekly AI newsletter. This issue discusses the evolving landscape of AI data sourcing, particularly the concept of “sweatshop data,” highlighted by Mechanize Work’s essay. Historically, AI training relied on low-wage labor from the Global South, where workers faced dire conditions. The essay suggests that as AI capabilities improve, companies now require expert data from highly skilled professionals, distancing themselves from previous practices. However, reports indicate that low-wage labor remains prevalent, particularly for content moderation tasks at companies like Meta and TikTok. Additionally, Meta recently appointed Shengjia Zhao as Chief Scientist to advance its AI innovations, purportedly igniting competition for top-tier talent. Meanwhile, a Pew Research study reveals that AI-generated summaries harm traffic to news sites, as only 8% of users click links in AI-enhanced search results. For AI-related stories, reach out to intheloop@time.com.

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