COMP NEWS – The advent of AI has driven down demand for freelancers in creative and technical roles by more than 20%, according to a new co-authored report.

Many employees, especially those working in creative fields, are understandably worried by the prospect of AI stealing their jobs – and new research has found it may not be an unfounded fear. 

 

A report from the Imperial College Business School, Harvard Business School, and the German Institute for Economic Research, found the demand for digital freelancers in writing and coding declined by 21% since the launch of ChatGPT in November 2022.

 

Automation-prone fields like writing, software, and app development saw a 21% decrease in job listings, while data entry and social media post-production experienced a 13% drop. Image-generation roles, including graphic design and 3D modelling, fell by 17%. Google search trends confirmed a higher decline in sectors aware of and using generative AI.

The study in question analyzed over two million job postings over two years and found that automation-prone roles (such as writing, app development, and software development) were hit especially hard.

The study, titled “Who is AI Replacing? The Impact of Generative AI on Online Freelancing Platforms,” analyzed nearly two million job postings across 61 countries from July 2021 to July 2023. It categorized jobs into automation-prone roles, manual work, and image generation, and discovered significant declines in postings across these sectors following the launch of ChatGPT.

 

Dr Xinrong Zhu, co-author and Assistant Professor of Marketing at Imperial College Business School, said: “Despite being available on the market for just over a year, ChatGPT has already had a huge impact on the workplace. Though many organizations may be shifting from freelancers to generative AI, it still remains to be seen whether organizations are happy with the quality of work that AI provides in comparison to freelancers, and whether this trend will continue.”

 

It’s not all bad news though. “Although the findings of our research suggest that the jobs market looks gloomy, whenever technology sweeps professions aside, new ones will emerge. For freelancers, this means that those people adapt their skillsets to the changing landscape, will continue to secure work in the future,” she concluded.

To read more about the study, click here.

For more Comp News, see our recent posts.

Comp News by CompXL

Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as vested stock options and variable incentive pay.

 

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE