Google has recently ended its contract with Appen, an Australian data company that played a significant role in training AI tools used in Google’s products. This decision is part of Google’s ongoing efforts to evaluate and optimize its supplier partnerships across Alphabet, according to Google spokesperson Courtenay Mencini. However, Appen claims that it had no prior knowledge of Google’s decision to terminate the contract.
Appen, like many other companies in the industry, relies on human workers to handle the less desirable aspects of training AI. These workers are often lower-paid and play a crucial role in rating data quality and evaluating answers from AI models. Last year, some Appen employees, who are members of the Alphabet Workers Union, petitioned for higher wages. Although the final increase fell short of their goal, many of these workers were subsequently laid off due to business conditions, as stated by Appen.
The termination of the contract with Google has had a significant impact on Appen’s revenue. In the fiscal year 2023, Appen generated $82.8 million from Google alone, contributing to its total revenue of $273 million for the year. This highlights the reliance of companies like Appen on contracts with major tech giants.
Google’s decision to end the contract with Appen is not an isolated incident. Workers at other Google contractors, such as Accenture, have expressed concerns about working conditions and have voted to join the Alphabet Workers Union. This trend extends beyond Google, as content moderators in Kenya have sued companies like Sama and Meta, alleging low payment for viewing disturbing content.
Google assures that it is working closely with Appen to ensure a smooth transition. The termination of this contract raises important questions about the treatment of workers in the AI industry and the responsibilities of tech companies towards their contractors.