Book Chapter

·2025

The Challenges of AI Regulation for the Gig Economy in the European Union

Klemens Katterbauer YTU , Sema Yılmaz Genç YTU , Hassan Syed YTU , Rahmi Deniz Özbay

Abstract

The rise of artificial intelligence (AI) in the gig economy creates major regulatory challenges for the EU, which must balance innovation with worker protection and fundamental rights. Gig platforms rely on algorithmic systems for task allocation, pay, and performance monitoring, yet their opacity limits transparency and accountability, leaving workers unable to contest decisions. The Artificial Intelligence Act (AIA) classifies such systems as “high-risk,” requiring strict rules on oversight and data governance, but enforcement varies across member states and may encourage regulatory arbitrage.Unclear employment status further complicates protection, as many gig workers are labeled contractors, excluding them from labor rights. The proposed Platform Work Directive seeks to address misclassification, but its scope and alignment with the AIA remain uncertain. Rapid technological change and the transnational nature of platforms risk outpacing regulation. Ensuring fair, adaptive governance is essential to protect workers while supporting innovation.

Keywords

Gig economy European union Transparency (behavior) Legislation Directive Corporate governance Scope (computer science) Enforcement CONTEST Business

Subject Areas

Digital Economy and Work Transformation ·Sociology and Political Science ·Social Sciences
International Labor and Employment Law ·Political Science and International Relations ·Social Sciences
Legal and Labor Studies ·Industrial relations ·Social Sciences