Google to end relationship with Australia-listed Appen which worked on its AI tools

Google has cancelled its contract with the Australia-listed data company Appen, which helped the Big Tech giant work on its artificial intelligence (AI) powered products such as Bard, reported The Verge tech outlet as well as Appen.

The company said it “had no prior knowledge of Google’s decision to terminate the contract” and that its revenue from Google in the financial year of 2023 was $82.8 million at a gross margin of 26%.

A Google spokesperson confirmed the decision and cited a need for greater efficiency when working with suppliers and vendors, reported The Verge.

The news comes amidst Google this month laying off hundreds of employees across its departments, such as ad sales, YouTube, and its experimental X Lab. Company chief Sundar Pichai warned that more jobs could be affected in the future.

Google’s AI services such as the Bard chatbot and generative AI-powered search experience have been rolled out to users worldwide, but have also been the target of legal complaints alleging data theft and user privacy violations.