Developments in artificial intelligence and machine learning have led to a series of debates over, among other things, whether it’s coming for your skilled job. AI anxiety has now crept into the domain of the gig economy, but not in the way you would expect.
Recent articles point the finger at companies allegedly using AI to “get inside gig workers’ heads” to “manipulate” their pay. The fury was jumpstarted by a law review article claiming that companies are engaging in “algorithmic wage discrimination,” a fancy term that means ridesharing drivers may be offered different rates for what seems like the same type of work.
It’s not unreasonable to think AI will make ridesharing apps better at figuring out how to pay drivers. That doesn’t necessarily mean drivers will earn less or that the rates they are offered will be determined in unethical ways.
In the consumer setting, travelers should already be well-acquainted with the concept. If you looked at prices for a flight six months ago, would you be surprised to find that it costs three times as much a week before departure? With fewer seats available, an airline can allocate them either on a first-come, first-served basis or through the current system. The current system is both more profitable for them and more likely to ensure that the person who needs the seat most can get it.
This dynamic pricing mechanism, which has been used by airlines and hotels for decades, is also in play in the ridesharing industry. Prices for your...
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