The hidden costs of AI: Labour, data and the race to dominate – The Front Page

Journalist Karen Hao’s book *Empire of AI* argues that the global AI industry is not just about technology but about ideology, labor exploitation, and resource extraction. Hao highlights how companies like OpenAI accumulate economic and political power by taking advantage of global resources—data, land, energy, and water—while simultaneously undermining labor rights through automation and information control. She describes this as a form of imperialism, where AI firms present themselves as benevolent forces of progress while systematically extracting value from the rest of the world. OpenAI initially positioned itself as a non-profit organization committed to sharing research for humanity’s benefit. However, Hao’s reporting reveals that competition was always central to its decision-making. Whenever hints of rivals like Google or other competitors threatened to outpace OpenAI, the company rushed releases without proper safeguards. This behavior reflects a core objective: to dominate the AI landscape at any cost. Hao’s findings challenge OpenAI’s early narrative of collaboration and caution, showing instead a relentless pursuit of market leadership. The book explores how AI development relies on hidden labor and resource exploitation, while public resistance and ethical concerns are often sidelined. Hao will discuss these themes at the Auckland Writers Festival, which runs until May 17. The broader implications of AI’s race for dominance include labor displacement, data privacy risks, and unchecked technological advancement. Hao’s work underscores the need for scrutiny of AI’s societal impact, beyond its technical achievements. Her analysis suggests that without regulation and ethical oversight, the AI industry’s pursuit of power could deepen global inequalities.