AI May Be a Threat to Freelancers, But Here’s the Silver Lining
AI is both a boon and a bane. When one AI application completes a task quickly, it simultaneously displaces a real human who was paid to do that job. There has been considerable debate about the impact of AI on freelancing, with several entry-level jobs and projects already being taken over by AI. However, research from the Wharton School of the University of Pennsylvania in the US has highlighted how the introduction of ChatGPT to the online labour market isn’t all bad news. The study analysed millions of records from a leading global freelancing platform, both before and after ChatGPT’s launch. The records included data on how over three lakh freelancers applied for jobs each month. Freelancers are Strategically Adapting to AI The findings showed that fields like copywriting and language translation faced a direct threat from AI. Independent contractors submitted between 51% and 62% fewer bids post-ChatGPT—a drop that persisted for nearly a year. Segments most affected by the drop in demand resorted to “horizontal repositioning”, where they were more likely to tailor their bids to various specialisations than their previous approach. Moreover, they also increased the percentage of their bids on high-value jobs. While the demand for freelancers in sectors like software development and data analytics was less affected, the platform saw an increase in the number of freelancers bidding for work. The report attributed a portion of the rise to the use of AI among international freelancers to bypass barriers like language and formal training, among others. For those affected by the rise in supply, the shift in their “vertical position” involved targeting lower-value jobs, which the study suggests could be a response to a more crowded and competitive market. Source: Wharton School Research Highly skilled freelancers were less likely to reduce their overall activity on the platform compared to their peers. They made fewer significant changes to the distribution of their bids across different work domains, suggesting a reluctance to move away from their area of expertise due to higher adjustment costs. “Our findings, perhaps, are more in line with the story where AI is levelling the skill deficit,” Manav Raj, one of the report’s authors, said. “It’s allowing lower-skilled workers to compete with higher-skilled people, which may be why higher-skilled workers are applying for a broader range of jobs now.” The document contains further details from the report, including detailed statistics and findings. The study concludes that freelancers across all segments are making strategic changes to how they work to adapt to AI, which seems to be the means of survival, for now. “I don’t think we’re at a point where freelance work is under existential threat, but the demand for it will shift,” said Raj. However, there seems to be an optimistic side. As AI capabilities continue to advance, freelancers, product engineering consultancies and studios can use these tools to increase their productivity, improve the quality of their deliverables, and shorten project timelines. The True Potential of AI for Freelancers and Studios AIM reached out to Aditya Chhabra, founder of CreateBytes, a design and engineering studio based in Gurugram. “A major focus for our engineers is to consider the design and the framework, and then the code is generated by AI agents,” Chhabra said, adding that this process helps them build quality deliverables at scale. Moreover, this also allows developers to spend more time on reviews and feedback. Chhabra also pointed out that using AI in product development improves the experience for his clients. “Most of our clients get very excited when we tell them this (deliverables) can be completed quickly. They get extraordinarily responsive, and happy about that,” he added. Chhabra explained that customers often approach engineering or design firms with a well-defined requirement that they believe fully captures their needs. However, by combining AI capabilities with deep domain expertise, it’s often possible to uncover a more strategic and valuable direction for the product. According to him, the real value lies in guiding clients beyond their initial specifications, helping them see that what they first envisioned may only be a starting point. As the development process unfolds, new opportunities often emerge. With the introduction of intelligent tools and autonomous agents, the product can evolve into something significantly more advanced and impactful than initially imagined.
There’s an opportunity to adapt to the capabilities of AI, using AI.
There’s an opportunity to adapt to the capabilities of AI, using AI. 
["AI (Artificial Intelligence)", "freelancing"]
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["AI", "analytics", "ChatGPT", "Aim", "autonomous agents", "R", "GPT", "ViT", "AI agents", "llm_models:GPT"]
Supreeth is an engineering graduate who is curious about the world of artificial intelligence and loves to write stories on how it is solving problems and shaping the future of humanity.