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News » AI reshapes freelance market, sparks job concerns

AI reshapes freelance market, sparks job concerns

NEW YORK, UNITED STATES — The rise of artificial intelligence (AI) is transforming the freelance landscape, with recent studies indicating a significant decline in job opportunities for freelancers in certain fields. 

This trend has left many independent contractors concerned about their future prospects in an increasingly AI-driven market.

AI’s impact on freelance writing and coding

Research from multiple institutions, including Harvard Business School and the University of Hong Kong, reveals a sharp decline in freelance job postings on platforms like Upwork and Fiverr. These jobs, which AI can easily perform, have dropped by as much as 21% since the advent of ChatGPT and similar models.

Kelly Monahan, managing director of Upwork’s Research Institute, echoes these findings. “Freelance jobs that require basic writing, coding, or translation are disappearing,” she told the Wall Street Journal. 

“Routine, low-skilled tasks that can be fully automated will mean lower wages for freelancers who once did those tasks,” she added.

Economists suggest that while AI automates certain tasks, it might not eliminate many jobs. However, for freelancers, who constitute 38% of the American workforce, the automation of key tasks can jeopardize their entire livelihood.

Creative industries feel the AI squeeze

The effects of AI on the freelance market extend beyond writing and coding. 

Reid Southen, a concept artist for TV and movies, reports that his income in 2023 was less than half of what he would make in a typical year. He attributes this decline to the increasing use of AI tools like Midjourney in the early stages of film and TV production.

“You can talk to any artist at this point, and they have a story about how they were given AI reference material to work from, or lost a job,” said Southen.

Adapting to the AI-driven landscape

While some freelancers struggle with the AI transition, others are finding new opportunities. 

Freelancers who can effectively leverage AI tools to enhance their productivity, particularly in fields like data science and IT, are seeing their earnings increase by an average of 40%, according to Upwork.

David Erik Nelson, a sales and marketing copywriter, has seen a rise in demand for his services since clients dissatisfied with AI-generated content seek his expertise. 

“The marketing people think it looks fine,” said Nelson, “but then you hand it to someone who actually knows something about industrial fluid purification, and they’re like, ‘This is word salad.’”

As companies experiment with AI in the freelance realm, similar transformations may eventually extend to permanent positions, reshaping the future of work for both independent contractors and traditional employees.

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