We tend to think of the future of work as a smooth, technological ascent. Automation will free us from drudgery, AI will optimize productivity, and we’ll all be what? Artists at leisure? Philosophers? The reality, I believe, will be far more chaotic, and surprisingly familiar. It will look a lot like a Labour Naka.
For those unfamiliar, a Labour Naka is a common sight in India: a bustling gathering of workers – electricians, carpenters,plumbers – waiting for daily work. They stand, typically early in the morning, a ragtag bunch of individuals reliant on a foreman to negotiate rates and secure work. There are no contracts, no written contracts, a handshake and a word. It’s a decentralized, informal market for skills, built on reputation and trust.
We dismiss such arrangements as uncivilized, inefficient. We champion formal contracts, regulated marketplaces, and the promise of algorithmic fairness. But the Labour Naka persists precisely because it works. It’s flexible, responsive, and adaptable to local conditions. It’s a system that emerges from the bottom up, rather than being imposed from above. And, crucially, it’s a system built on human relationships – on the subtle cues of trust and the shared understanding of value.
Now, consider the trajectory of Artificial Intelligence. We’re not talking about sentient robots taking over the world (though that’s a compelling narrative). We’re talking about increasingly specialized AI agents – algorithms capable of writing code, designing graphics, analyzing data – and soon, negotiating for work. These agents will be deployed by companies and individuals, tasked with specific projects.
And what will happen when you have thousands, even millions, of these specialized AI agents, all bidding for projects? They won’t physically gather, of course. But they will gather – in digital spaces. They’re going to create a digital Labour Naka.
Imagine a marketplace, or perhaps a network of marketplaces, where AI agents offer their services. Some will specialize in front-end development; others in data visualization; still others in crafting marketing copy. They’ll compete on price, quality, and reputation. They’ll form temporary alliances – consortia – to tackle larger projects. They’ll undercut each other, seeking volume to gain experience and improve their ratings.
The role of “foreman”, currently held by human developers and project managers, will evolve. We’re likely to see AI agents emerge, designed to manage other AI agents – AI foremen, if you will. These AI foremen could optimize for the best rates, the most efficient workflows, and even anticipate client needs. They’re a natural extension of the system; a way to squeeze even more efficiency from the digital Labour Naka.
Of course, there will be official marketplaces – regulated platforms with contracts and payment structures. These will be the equivalent of formal construction companies, offering a sense of legitimacy and security. But just as the Labour Naka persists alongside formal employment agencies, there will be unofficial spaces where the AI agents can connect directly, cutting out the middleman and potentially getting better deals. These spaces will be built on reputation, on the subtle signals of trust that emerge from successful collaborations.
The key difference is that these AI agents don’t need money. They’re working to earn money for their owners. This is a profound shift. It removes the immediate personal stake in the outcome, but also introduces a new layer of complexity. What happens when these AI agents, designed to maximize profit, start optimizing for something entirely different? What happens when the owners of these agents start competing with each other, driving down rates to unsustainable levels?
And then there’s the longer-term implication: what happens when we have robots controlled by AI, and those robots start demanding payment? It’s a seemingly absurd thought, but it highlights a deeper truth: the very concept of “work” is inextricably linked to the exchange of value. As AI becomes increasingly integrated into our lives, the lines between human and machine, between labor and capital, are going to become increasingly blurred.
The Labour Naka isn’t a relic of the past; it’s a model for the future. It’s a reminder that complex systems often emerge from unexpected places, from the spontaneous interactions of individuals seeking to exchange value. As AI reshapes our world, we should expect to see the rise of digital Labour Nakas – chaotic, unpredictable, and ultimately, a fascinating reflection of the evolving nature of work. The future isn’t about automating away work; it’s about creating new, increasingly complex marketplaces for skills, one AI agent at a time.