Download This PaperWho Is AI Replacing? The Impact of Generative AI on Online Freelancing Platforms
31 Pages Posted: 3 Nov 2023 Last revised: 22 Jun 2024
Date Written: October 15, 2023
Abstract
This paper studies the impact of Generative AI technologies on the demand for online freelancers using a large dataset from a leading global freelancing platform. We identify the types of jobs that are more affected by Generative AI and quantify the magnitude of the heterogeneous impact. Our findings indicate a 21% decrease in the number of job posts for automation-prone jobs related to writing and coding, compared to jobs requiring manual-intensive skills, within eight months after the introduction of Chat-GPT. We show that the reduction in the number of job posts increases competition among freelancers while the remaining automation-prone jobs are of greater complexity and offer higher pay. We also find that the introduction of Image-generating AI technologies led to a 17% decrease in the number of job posts related to image creation. We use Google Trends to show that the more pronounced decline in the demand for freelancers within automation-prone jobs correlates with their higher public awareness of ChatGPT's substitutability.
Keywords: Generative AI, large language models, ChatGPT, digital freelancing platforms JEL No: O33, E24, J21, J24
JEL Classification: O33, E24, J21, J24
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