How companies are using AI to pay workers as little as possible

As corporate profits surge, American workers are taking home a record-low percentage of the proceeds from their work. In the third quarter of 2025, the “labor share” of Gross Domestic Product in the U.S. decreased to 53.8%, according to data from the Bureau of Labor Statistics. This was the lowest level seen since the Bureau began recording labor share in 1947.One likely factor: the rise of algorithmic pay. In recent years, major companies have begun to use artificial intelligence (AI) algorithms to set wages for some workers. The practice has become particularly common among rideshare and delivery companies like Uber and DoorDash.

According to 2023 research by Veena Dubal, companies collect data on each worker, including where they live, what hours they normally work, and what their typical earnings target is, and “use that data to personalize and differentiate wages for workers in ways unknown to them.” Dubal found that algorithms may offer a lower rate to a worker more likely to accept jobs, or someone who will keep working until they hit a daily target. One driver told Dubal he suspects the algorithm delayed offering him rides after he was one trip away from earning a $100 bonus. Studies have also found that workers for delivery platforms are often offered different wages for the exact same job. Uber disputed the findings of Dubal’s research.