A New IIT Madras Study Reveals the Double-Edged Sword of Algorithmic Management in India's Gig Economy — Here's What It Means for Workers

A new study from IIT Madras's Centre for Responsible AI (CeRAI), authored by Omir Kumar and Krishnan Narayanan, examines how AI and digital platforms manage blue-collar gig workers in India's ride-sharing and delivery sectors. Using a social justice framework and mixed methods—including interviews with 16 gig workers and 21 key stakeholders—the research uncovers a paradox: algorithmic management expands access to work and boosts operational efficiency, but simultaneously introduces significant challenges around fairness, transparency, and worker dignity. Key findings show that these systems are intentionally opaque, produce inequitable outcomes, and fail to reward additional labor with proportionate pay.

To address these issues, the authors advocate for a pragmatic hybrid governance model called the 'Algorithmic Human Manager,' where technological efficiency and human accountability work in concert rather than opposition. The paper's implications extend to policymakers, platform companies, and civil society organizations designing equitable AI governance for the Global South. The research was published on arXiv in June 2026 and carries lessons for building fairer digital labor markets amid rapid AI adoption.