Is Outlier AI a Scam? 

If you’re thinking of using Outlier AI, you need to know: Is Outlier AI a scam? 

Below, we explain whether Outlier AI is a scam and discuss some steps you can take to improve your safety when using this platform. 

What Is Outlier AI?

Outlier AI is a gig platform that connects subject-matter experts (usually freelancers and remote contributors) with projects that help train generative AI models.

Tasks can include prompt evaluation, content moderation, data labeling, code evaluation, and more.

Outlier AI was launched in 2023 by Scale AI.

Is Outlier AI a Scam?

It’s hard to know.

Outlier AI has been featured in third-party publications, but not necessarily for good reasons.

For example, in 2024, Inc. reported that Outlier AI was aggressively recruiting workers with inconsistent pay promises, noting that many freelancers complained about unpaid training, payment issues, and a lack of transparency. 

A 2025 Forbes article paints a more balanced picture of Outlier AI. 

It writes about how the platform is rapidly growing in the U.S. and increasingly relies on highly educated workers who value flexibility and remote income, but also details mounting lawsuits and complaints from other contractors alleging underpayment, harsh time constraints, and mental health impacts from disturbing content. 

User reviews of Outlier AI are very mixed:

• 2.4 out of 5.0 stars (from 652 reviews) on Indeed.
• 3.2 out of 5.0 stars (from 1,978 reviews) on Glassdoor. 
• 4.2 out of 5.0 stars (from 2,712 reviews) on Trustpilot.

On online forums like Reddit, people report varying experiences with Outlier AI. 

Many people warn that they haven’t been paid for the work they’ve done.

One person said: 

“I’ve worked there for 5 weeks, have not been paid, and I’m not sure if I ever will. I reached out to my team lead asking why I’m not getting paid and she dismissed it with “submit a ticket.” After 3 business days, I received a response from support that read: “Congratulations, you’ll be paid next week.” I wasn’t. There’s nothing I can do about it, but put in another ticket. I’m curious if anyone else is getting paid.”

On the other hand, some people report that the company is legitimate, just poorly run. 

According to one person:

“It’s legit but poorly run. By the time you understand what it is they want, they’ll remove you from the project.”

Another user said they appreciated the timely pay but feel the platform is unstable, unfair with unpaid training, and poorly managed: 

“Agree. My pay (about $1000 for one month) has been consistently on-time. Best week $540, last week; $50. Available work has become very scarce. New projects can require hours of unpaid training and you can be removed with no explanation after billing only a couple of hours. Project instructions are vague and incomplete. I had optimism at first but am looking elsewhere.”

On Glassdoor, reviews are likewise mixed.

The pros highlighted by reviewers include:

• Good pay (when work is available).
• Flexible remote work.
• Supportive teams in some roles. 

The cons frequently reported include:

• Inconsistent/unreliable work.
• Unpaid and time-consuming training.
• Poor communication and support.
• Overpromising work and pay.
• Stressful evaluations and incorrect reviews of work.

Overall, 61% of reviewers on Glassdoor would recommend Outlier AI to a friend.

Outlier AI is not Better Business Bureau (BBB) accredited. It has received 12 total complaints in the last three years, 9 of which have been closed in the past 12 months. (Read our review “Is BBB a Scam?”)

Terms of service

In its terms of service, Outlier notes that it pays after verification that your tasks were done correctly. 

Final payment is only for already completed tasks. There’s no clear appeals process if they decide not to pay you.

It may withhold or delay payment if it investigates violations. It may also suspend or terminate your account at any time, without notice.

You don’t retain rights to your contributions. Anything you create, including your written evaluations, code, ideas, or content, is automatically assigned to Outlier. Even if not assignable, you grant the company a perpetual, irrevocable worldwide license to use it as they see fit. 

You agree to cover Outlier’s legal costs if your work causes claims. This could include IP disputes, client complaints, or confidentiality breaches. It puts legal and financial risk on you, even though you don’t control many aspects of the system.

All disputes (for U.S. users) must go to binding arbitration (AAA), not court. You waive the right to join a class action or collective lawsuit.

Class action lawsuits

Scale AI, the parent of Outlier AI, is facing a class action lawsuit accusing it of misclassifying contractors, underpaying workers, and exposing them to traumatising content for projects like Meta’s Flamingo Safety Project. Plaintiffs allege “predatory” practices and violations of California labour laws.

The complaint also stated that individuals working for Outlier AI who ask payment-related questions on Slack channels are frequently removed from the company.

Additionally, plaintiffs noted that their online activity, including browser history and mouse movements, was monitored by Scale. 

Security

We could not find much information about Outlier AI’s security. 

In its privacy policy, Outlier AI says it employs “reasonable physical, technological, and administrative security measures” to protect your personal data.

The company does not go into detail as to what these measures are. 

Privacy 

Outlier AI explains the kind of data it collects, for what purposes, and with whom it shares it in its privacy policy.

It collects the following information directly from you:

• Registration information: name, email, address, phone, demographic details, education, and work background.
• Identity verification: government ID, selfies, images/videos, possibly biometric data (face, voice, eyes). This is retained for up to 2 years.
• Your activity: tasks completed, security reviews, and any User Content you upload.
• Communications: emails, support requests, surveys, and event signups.
• Financial/payment information: bank details, tax info, and taxpayer ID.

Outlier AI also automatically collects device and browser information, IP address, cookies, pixels, referring websites, and similar information.

Plus, it collects information from third parties, such as login providers (e.g., Google and Facebook), business partners or screening vendors, payment processors, and other platforms where you post user content. 

Outlier AI collects this data to provide services, manage accounts, personalize your experience, improve and test the platform, promote Outlier services via marketing, protect security, verify identity, communicate with you, comply with legal obligations, process payments for completed tasks, host events or webinars, and handle legal claims when necessary. It aggregates/de-identifies data for research and analytics. 

It may share this information with affiliates (including parent company Scale AI), business partners, service providers, customers (AI companies), other users (for tasks that require collaboration), advertising and marketing networks, law enforcement agencies and regulators (if legally required), and in mergers/acquisitions. 

The company keeps your personal information for as long as necessary for purposes described or as required by law. Biometric verification data is retained up to 2 years after the last interaction. 

Data is deleted when no longer needed, though technical limits may delay full deletion.

Data is stored and processed in the United States and may be transferred to other countries without equivalent privacy protections.

Depending on where you live, you may have certain privacy rights, such as the right to withdraw consent, object to or restrict processing, and request portability of your data. 

So, Should You Work for Outlier AI?

It’s hard to know.

People are divided about Outlier AI. Overall, it seems like a high-risk, unstable gig platform.

Critics (including plaintiffs in lawsuits) say the company underpays, misclassifies contractors, and forces them to endure disturbing content under unrealistic time limits. 

On the other hand, some workers say they appreciate the flexibility, steady pay, and extra income despite acknowledging the platform still has “growing pains.”

How to Work for Outlier AI Safely and Privately

• Use a dedicated email address. Having a separate email just for Outlier and similar gig platforms will help you keep your primary inbox free of spam and reduce your exposure in case of a security incident. 
• Avoid linking social media. Create a standalone login instead.
• Limit what data you share. Don’t share extra personal details unless absolutely required (i.e., only what’s needed for account verification and payment).
• Understand the biometric risk. If Outlier AI requests selfies or ID scans for verification, know that it can retain them for up to 2 years. You may want to request deletion once you stop working with them. 
• Use a separate browser profile or device just for Outlier tasks. This can help ensure that any monitoring of your mouse movements or browsing history is limited to work activity, not your personal life.
• Safeguard your payments. Use PayPal (or another buffer service) instead of giving Outlier direct access to your primary bank account.
• Track all completed work and pay owed. Keep screenshots of task completion, time spent, and the promised pay rate.
• Cash out quickly. Don’t let large balances accumulate in your Outlier account in case of sudden deactivation.
• Opt out of disturbing content tasks. If a project involves violence, self-harm, or explicit material, skip it. You can’t undo that exposure.
• Join support communities. That way, you can share experiences and learn about red flags from other workers.
• Read every task description carefully. Especially the expected time vs. pay to avoid unpaid overwork.
• Keep records of communications with support. This can come in handy in case of disputes (download copies of chat/email).
• Know arbitration limits. You can’t sue or join a class action, but you can still file complaints with agencies like your local labor board or data protection authority.
• Create a strong password. Consider using a password manager to ensure Outlier credentials are unique and secure.