Scale AI, a leading artificial intelligence company, is facing its third lawsuit in just over a month, this time from workers claiming they suffered psychological trauma from reviewing disturbing content without adequate safeguards. The company, valued at $13.8 billion last year, relies on workers it categorizes as contractors to perform tasks like rating AI model responses.

The latest complaint, filed on January 17 in the Northern District of California, is a class action lawsuit that focuses on the psychological harms allegedly suffered by six people who worked on Scale's platform Outlier. The plaintiffs claim they were forced to write disturbing prompts about violence and abuse, including child abuse, without proper psychological support, and suffered retaliation when they sought mental health counsel.

The workers allege that they were misled about the nature of the job during hiring and ended up with mental health issues like post-traumatic stress disorder (PTSD) due to their work. They are seeking the creation of a medical monitoring program, new safety standards, and unspecified damages and attorney fees. One of the plaintiffs, Steve McKinney, is also the lead plaintiff in a separate December 2024 complaint against Scale, which alleges similar issues of misclassification and underpayment.

The law firm representing the plaintiffs, Clarkson Law Firm of Malibu, California, has previously filed a class action suit against OpenAI and Microsoft over allegedly using stolen data. That case was dismissed after being criticized by a district judge for its length and content. Scale AI has responded to the lawsuit, criticizing Clarkson Law Firm and stating that they plan to "defend themselves vigorously."

A spokesperson for Scale AI, Joe Osborne, referenced the previous case, saying that Clarkson Law Firm has "previously – and unsuccessfully – gone after innovative tech companies with legal claims that were summarily dismissed in court." Osborne added that Scale complies with all laws and regulations and has "numerous safeguards in place" to protect its contributors, including the ability to opt-out at any time, advanced notice of sensitive content, and access to health and wellness programs.

However, Glenn Danas, partner at Clarkson Law Firm, countered that Scale AI has been "forcing workers to view gruesome and violent content to train these AI models" and has failed to ensure a safe workplace. Danas emphasized the need to hold big tech companies like Scale AI accountable for their treatment of workers, stating that "we must hold these big tech companies accountable or workers will continue to be exploited to train this unregulated technology for profit."

This lawsuit raises important questions about the treatment of workers in the tech industry, particularly in the context of AI development. As the use of AI technology continues to grow, it is essential that companies prioritize the well-being and safety of their workers. The outcome of this lawsuit will likely have significant implications for the industry as a whole, and could lead to changes in the way companies approach worker safety and support.

Scale AI's response to the lawsuit highlights the company's commitment to complying with laws and regulations, but it remains to be seen whether their safeguards are sufficient to protect workers from psychological trauma. As the lawsuit progresses, it will be important to monitor the company's actions and ensure that they are taking concrete steps to address the concerns raised by the plaintiffs.

In the broader context, this lawsuit is part of a larger trend of tech companies facing scrutiny over their labor practices. As the industry continues to grow and evolve, it is essential that companies prioritize the well-being and safety of their workers, and that regulators and lawmakers take steps to hold them accountable.