Hyderabad: Tim Berners-Lee, the computer scientist who made history by publishing the code for the World Wide Web in 1991, remarked that it was only made possible by the people of the Internet, who “built the Web, in true grassroots fashion.” From its inception, the Internet has been a colossal equalizer, a global commons that promised democratic access to information and opportunity.
The proof is in the pudding. But as AI becomes the newest layer of this digital pie, it also appears to be souring the crust. Consider the Worldcoin Orb, a biometric scanning device intended to replace CAPTCHAs, which are now easily bypassed by AI bots, to verify that a user is human, a lifetime subscription that sets one back by approximately Rs.45,000 (504 USD).
Ironically, Worldcoin was co-founded by Sam Altman, who also co-founded ChatGPT, a proponent of the very AI technology that created the challenge this device now seeks to solve. As AI grows more potent in its influence on our daily lives, the discourse surrounding it is largely focused on its benefits and headline risks. At the same time, the hidden costs borne by the average individual are being glossed over.
The upside of AI
It is an irrevocable fact that AI provides certain clear benefits. Take, for instance, its enabling services such as AI-powered tutoring, legal advice, and content creation, all of which are available at a fraction of the cost of their traditional counterparts. AI has potentially life-saving applications, including early detection of diseases and preventive healthcare, which further bolsters its case.
Moreover, nations and corporations alike with limited infrastructure are finding that AI can be harnessed to bridge critical gaps in service delivery and assistive technologies. Among a myriad other functions, productivity gains also strengthen the case of AI, freeing up human effort for “higher-value” tasks.
AI has the potential to improve our lives radically. However, it remains imperative that we consider the cost at which this occurs, lest we enter a Faustian bargain, exchanging autonomy and privacy for the illusion of seamless progress.
The Participation Premium
Endeavors like Worldcoin, which lead to the commodification of human identity itself, are only the tip of the iceberg. With AI-enhanced productivity increasingly placed behind paywalls, those who cannot pay are left behind. A study by the PEW Research Center found that the use of AI tools in the workplace is rising exponentially; however, access remains unequally distributed, and those with higher education and income levels are far more likely to benefit from it.
Another issue that has already invited scrutiny and investigation by the United States Federal Trade Commission is the increase in prices for particular users through AI-based dynamic pricing, which personalizes price levels based on user data such as browsing history and location. The question remains whether such “surveillance pricing” disproportionately inflates costs for certain users.
When Labour Markets become Data Markets
The enticing promise of speed and efficiency makes us forget to ask: faster, how, and for whose benefit? AI systems rely heavily on a largely invisible form of unpaid digital labor. During the model development phase, foundational AI systems are trained on massive datasets drawn from user-generated content across the Internet, from blogs and forums to artwork and code.
Even after deployment, user interactions with specific AI applications continue to generate fine tuning data that improves performance over time. Yet, the share in value for the individuals producing this very data is conspicuous in its absence; an asymmetry that represents a quiet but significant shift in value creation from labor markets to data markets, where a handful of firms capture the returns.
Rising Shadow Inflation
One could argue that companies adopted automated systems like the IVR (Interactive Voice Response) as early as the 1970s and later incorporated rule-based chatbots into their customer service, changes that reduced reliance on human agents long before the influx of AI.
The difference is that these earlier tools, like Microsoft’s Clippy in the early 2000s, made no secret of being a digital assistant, with users aware that they were speaking to a machine. The AIpowered systems of today are far more opaque, often mimicking human communication so effectively that consumers may not realize they are interacting with code and not consciousness.
Yet behind this sophistication lies a quiet erosion of value, with the initial price remaining the same but the experience and the economic substance behind it being diminished in ways that escape conventional measurement.
The Road Ahead
Most poignantly, this period of transformation wears down experiential and artistic value. The recent backlash to the “Studio Ghibli AI trend,” where millions of users transformed personal photographs into AI-generated illustrations mimicking Miyazaki’s Signature aesthetic, captures this rising unease.
This is not, however, an argument against technology but a reminder that not all progress is value-neutral. As we grow closer to our goals of increased efficiency, we risk displacing more than just labor; we also flatten meaning, the slow emotional richness that underpins culture and economy.
Whether the future holds AI co-operatives, user-owned training models, or data dividends that give users a share of the profits companies make using their data is yet to be seen. One thing is certain: if AI is to shape our future, it must belong to everyone, making life better for the many, not just easier for the few.
This article is authored by Ritika Rao Veerisetti, Research Scholar, Department of Economics, ICFAI School of Social Sciences, ICFAI�Foundation for Higher Education, Deemed University, Hyderabad.