AI Training Workforce Faces Homelessness and Exploitation: Inside the Hidden Labor Behind AI Development

Last year, a San Francisco-based AI company called Mercor rapidly gained prominence in the tech industry amid widespread unemployment in the U.S. The online job marketplace connects contractors—often struggling, unemployed workers—with major tech firms like OpenAI, the creator of ChatGPT.

The nature of these gigs is unsettling: former employees are hired to teach AI systems how to perform their former jobs. To make matters worse, Mercor has a reputation for mistreating its workforce.

Inside the Hidden Labor Behind AI Development

A new mini-documentary by More Perfect Union exposes the exploitative practices of companies like Mercor. Reporter Karen Hao interviews multiple data workers—many of whom requested anonymity due to fears of retaliation—about their experiences working in what the nonprofit describes as “America’s AI sweatshops.”

Shocking Statistics on AI Labor Exploitation

The documentary highlights a 2025 study by the Communication Workers of America, which found that among workers training AI systems, 22% reported experiencing homelessness because of their low wages.

Additionally, labor researcher Tim Newman led a study revealing that 86% of data workers—those responsible for training the AI models used daily—struggled to pay their bills last year. Nearly one-quarter relied on public assistance programs such as food stamps and Medicaid.

Personal Accounts of Desperation and Exploitation

One interviewee, who used the pseudonym Jen, shared her harrowing experience with Hao. After earning a PhD from an Ivy League school over a year ago, Jen faced a difficult job market. With no promising career prospects, she moved in with her sister and depended on food stamps. Desperate for income, she applied for a gig with Mercor offering $55 per hour—far more than her previous jobs as a cashier and substitute teacher.

“I think the role I saw was philosophy intelligence analyst,” Jen told Hao. “I’m looking and I’m like, ‘Well, why wouldn’t I be able to do that?’”

Her optimism quickly faded. Just two weeks into her first project, Mercor abruptly terminated her contract.

“We all get a message in our group comms where it’s like, ‘Actually, like, this contract is ending,’” Jen explained.

Her story is not unique. With Mercor reportedly employing 30,000 workers, many may face similar instability and financial hardship.

Broader Implications for the AI Labor Force

The exploitation of AI workers raises concerns about the sustainability and ethics of the industry. As AI systems become more advanced, the demand for human labor to train and refine them grows. Yet, the financial and emotional toll on workers—many of whom are highly educated—paints a grim picture of the industry’s labor practices.

For more insights into AI labor exploitation, read: AI Companies Are Treating Their Workers Like Human Garbage, Which May Be a Sign of Things to Come for the Rest of Us.