Uber faces legal action over use of its AI-driven dynamic pay systems

Uber is facing a class-action legal action with the non-profit organization over its use of AI-powered payment systems for allegedly lacking transparency and violating data protection laws.

Workers Information Exchange International (WIE), a non-profit organisation, has issued a legal letter on behalf of drivers in the UK and Europe to Uber BV in Amsterdam and Uber Technologies Inc. in the US, ahead of the lawsuit.

He also noted that Uber is also investigating payment systems across Europe and may expand the claim to other countries in the future.

Stating that the issue is not only about financial justice, compensation and compensation for Uber employees, the foundation said, “This is about ensuring transparent, fair and safe working conditions for all platform employees.”

James Farrar, Labor Executive Chairman of Info Exchange International, stated that Uber uses artificial intelligence and machine learning to implement highly intrusive and exploitative pay setting systems that are damaging the livelihoods of thousands of drivers.

“Through collective action, we aim to achieve a fairer deal for drivers and ensure Uber is held financially responsible for the harm caused by this illegal use of AI.”

WIE International also alleged that Uber violated the EU General Data Protection Regulation (GDPR) by illegally transferring driver data from Europe to the United States between August 2021 and November 2023, unlawfully exposing personal data to the risk of unauthorized access and US government surveillance.

“The company uses drivers’ personal data and profiles without their consent to train the same algorithm,” WIE said.

The group, which advocates for transparency and fairness, warned that if Uber does not comply with demands to stop these practices and pay compensation to affected drivers, they plan to file a class action before the Amsterdam District Court under the Netherlands’ collective compensation law.

WIE stated that research conducted by Oxford University in partnership with the foundation revealed that 82 percent of Uber’s drivers in the United Kingdom earned less per hour after the introduction of dynamic wages and lost 8-16 percent of their wages last year.