Governance Of Algorithmic Management In Digital Platforms

The platform economy is growing at an unprecedented rate in the G20 countries as the number of digital platforms grew from 128 to 611 in the past decade. While platforms have generated work and income opportunities for millions of workers, this digital transformation has brought implications on the working conditions of platform workers. At the heart of this technological development lies the algorithmic management of work i.e. algorithms having the ability to allocate, monitor, evaluate, and reward platform workforce. These algorithmic systems are often complex, non-transparent and hence, incomprehensible. Thus, it becomes difficult to understand the logical explanation behind any algorithmic decision. In other words, without transparency, there is a lack of necessary insights into how algorithmic systems operate. While the workers are unable to understand the rationale behind algorithmic decisions that affect their livelihood, the policy makers are unable to assess its impact on workers, businesses, and economy at large. This T20 Brasil policy brief suggests actionable policy recommendations to ensure transparency of the algorithmic systems, and also propose a governance framework to integrate efforts of workers, businesses, and government together. The recommendations are guidelines for the G20 countries to adapt to varied diversity and also technological advancements leading to economic growth. The T20 Brasil policy brief could help policy makers of G20 countries to make informed decisions and enact effective regulations that uphold fairness, transparency, and social justice to promote sustainable livelihood and businesses in the platform economy.