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The machine magic of AI relies on one of the oldest technologies of all: human labor. This week we look at Scale AI, one of the companies behind the booming data annotation industry.

As their heads were measured and fitted for custom-made felt cowboy hats, the 100 or so guests assembled in Utah’s scenic Wasatch Mountains in November 2023 had ample reason to feel special. The group of AI executives, venture capitalists, government officials, and policy folks, had been handpicked to attend a secretive three-day retreat focused on the national security implications of artificial intelligence.

As AI models get more complex, so do the tasks carried out by humans to train them. It’s given $14 billion Scale AI a new focus on U.S.-based labor.

Scale AI is facing its third lawsuit over alleged labor practices in just over a month, this time from workers claiming they suffered psychological trauma from reviewing disturbing content without adequate safeguards.

A San Francisco-based artificial-intelligence startup misclassified workers as contractors and failed to pay them the money they were owed or give them paid breaks, according to a new class-action lawsuit.

Scale AI, a buzzy San Francisco startup with high-dollar ties across the tech industry, was sued Tuesday by a former worker with allegations that the company is committing wage theft and misclassifying workers.