Low Wages in Tech: More than Just an OpenAI Problem

under paid employees

The recent NBC News article suggesting that OpenAI’s AI trainers, earning $15 an hour, are underpaid has stirred up discussions within the tech industry. First, however, it’s necessary to understand that the issue of low wages isn’t exclusive to OpenAI but is a manifestation of a broader economic situation that deserves our attention.

My argument hinges on two key points. First, while it’s unquestionable that earning $15 an hour can seem unjust, it’s essential to acknowledge that OpenAI’s compensation aligns with the prevailing national wage norms for equivalent positions. Second, the concern of low wages in this scenario is entrenched in broader economic structures that go beyond the boundaries of a single institution.

Data from the Bureau of Labor Statistics reveals that the average hourly wage for data entry keyers in Kansas, a role similar to that of AI trainers, is $17.66. Payscale, another reputable source, suggests an even lower $14.92. OpenAI’s pay is not an outlier but falls within the national range. OpenAI is not necessarily underpaying; the pay scale for this type of job across the board is troublingly low.

Why is this the case? A potential explanation can be found by considering the cost of living index. Kansas, where some of the AI trainers in question are based, has the country’s second-lowest cost of living index at 86.5. This means that employers in the area can afford to pay lower wages. So it’s a systemic issue tied to local economic conditions, not just a company-specific problem.

This, however, doesn’t negate the fact that the wages may be unfair. The value of work should not be solely dictated by geographical location and local economic factors. It’s an issue that extends beyond OpenAI and into national labor laws and regulations.

The NBC News article overlooks this broader economic landscape. While their report focuses on the emotional angle of the unfairness of low pay, it misses out on addressing the systemic factors at play. Moreover, by focusing solely on OpenAI, they risk making the problem seem company-specific when it’s clearly part of a broader economic picture.

In conclusion, it’s imperative to recognize that the issue of low wages for AI trainers and similar job roles is not a solitary concern for OpenAI but rather a symptom of more immense economic challenges. Therefore, we should tackle this issue by focusing on a broad-based reform in wage policies and labor laws instead of merely blaming specific companies. By adopting this approach, we can create a fairer remuneration system that genuinely appreciates the efforts of all employees.


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