Thursday, June 20, 2024

GenAI is already driving down demand for freelancers

New research from Imperial College, Harvard and the German Institute for Economic Research looks at the impact of GenAI technologies on the demand for freelance creative professionals The demand for freelancers working in writing, and coding associated jobs has dropped by 21 % because the launch of ChatGPT in November 2022, in accordance with new analysis by Imperial Faculty Enterprise College, Harvard Enterprise College and the German Institute for Financial Analysis. This analysis paper, Who’s AI Changing? The Influence of Generative AI on On-line Freelancing Platforms, seems on the influence of GenAI applied sciences on the demand for inventive professionals who work on an hourly foundation for various purchasers.

The researchers reviewed information on a worldwide on-line freelancing job platform, of just about two million job postings on the location, unfold throughout 61 completely different nations, for a two-year interval between July 2021 – July 2023.

They categorised these jobs roles into three sectors – automation-prone, guide work and picture technology. The researchers reviewed the frequency of job postings all through the two-year interval to know the demand for freelancers working for various organisations, and whether or not this was influenced by the launch of Chat GPT.

The research discovered that because the introduction of ChatGPT in November 2022, the variety of job postings associated with writing, software program, app and net growth, and engineering, in any other case often called automation-prone jobs, had fallen by 21 % in comparison with the interval earlier than ChatGPT was launched.

Nonetheless, freelance job postings targeted round information entry, video and audio enhancing, and social media submit manufacturing had been barely extra much less affected by ChatGPT, dropping by 13 %. Jobs targeted on image-generation reminiscent of graphic design and 3D modelling noticed a 17 % drop in demand on the net job platform after image-generating AI instruments.

The researchers backed up these findings by reviewing patterns from Google search quantity indexes, which confirmed that sectors the place staff had a excessive consciousness on generative AI and methods to utilise it i.e. the tech business, exhibited a extra important decline in demand from employers.

It nonetheless stays to be seen whether or not organisations are pleased with the standard of labor that AI offers

Dr Xinrong Zhu, co-author and Assistant Professor of Advertising and marketing at Imperial Faculty Enterprise College, mentioned: “Regardless of being accessible available on the market for simply over a yr, ChatGPT has already had a big impact on the office. Although many organisations could also be shifting from freelancers to generative AI, it nonetheless stays to be seen whether or not organisations are pleased with the standard of labor that AI offers compared to freelancers, and whether or not this development will proceed.

“Though the findings of our analysis counsel that the roles market seems gloomy, at any time when expertise sweeps professions apart, new ones will emerge. For freelancers, which means that these individuals adapt their skillsets to the altering panorama, will proceed to safe work sooner or later,” she mentioned.

The researchers say that it stays unclear how generative AI expertise will have an effect on the digital labour market in the long term. The widespread adoption of generative AI by employers as a substitute for human staff could exacerbate an present decline in demand for labour, worsening staff’ welfare. In the meantime, the analysis means that generative AI can even improve staff’ productiveness and will consequently enhance individuals’s earnings.

Wanting forward, the researchers say it is very important emphasise the continuing want for roles that demand a extra human contact, reminiscent of tasks that decision for a better diploma of creativity, intricate problem-solving and nuanced understanding. In keeping with the researchers, the longer term office would require a mess of various expertise and the human intelligence to supply them.

This analysis was performed by Dr Xinrong Zhu, Assistant Professor in Advertising and marketing at Imperial Faculty Enterprise College, alongside Dr Ozge Demirci, a Postdoctoral Fellow from Harvard Enterprise College and incoming Imperial Assistant Professor, and Jonas Hannane, a PhD scholar from the German Institute for Financial Analysis. The research is out there to obtain from the SSRN web site.

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