Digital freelance demand dips

A new report has shown that since the introduction of ChatGPT, the demand for digital freelancers has declined by 21%.

According to the research, job postings related to writing, software, app and web development and engineering have been affected the most.

The research paper, Who is AI Replacing? The Impact of Generative AI on Online Freelancing Platforms, was compiled by the Imperial College Business School, Harvard Business School and the German Institute for Economic Research.

It reviewed data on a global online freelancing job platform, of almost two million job postings on the site, spread across 61 different countries, for two years between July 2021 and July 2023.

Commenting on the findings, 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 organisations may be shifting from freelancers to generative AI, it still remains to be seen whether organisations are happy with the quality of work that AI provides in comparison to freelancers, and whether this trend will continue.

“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.”

To find out more about contracting please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.