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This study reveals a surprising reality. Generic AI tools like ChatGPT are already restructuring the freelance job market, reducing employment opportunities, and paying workers at all skill levels. Even the most powerful freelancers suffer from the biggest sets.
Published in the Journal Organization Science, this study provides some of the first harsh evidence that AI has an immediate impact on employment.
“Amazingly, top-performing freelancers are seeing the biggest set-off. With each 1% increase in freelancers’ past revenues, employment opportunities have declined by another 0.5% and monthly income has declined by 1.7% after the introduction of AI technology.”
The market has been confused
This study, “The Short-Term Impact of Generative Artificial Intelligence on Employment: Evidence from the Online Labor Market,” challenges assumptions regarding the impact of AI on the labor market. AI is often seen as a threat to less skilled jobs, but the results show that the confusion extends to high performance as well.
“We see dramatic changes in the freelance labor market. Generation AI not only affects the most skilled workers, but also disrupts the competitive advantage of the best workers. High-quality freelancers who thrive in tough markets are usually defeated by anyone else,” says Hui.
Oren Reshef, a graduate of Washington University, emphasized that the rise of AI is changing traditional work dynamics.
The future of work in an AI-driven economy
These findings raise urgent concerns for businesses, policymakers and workers. As AI adoption accelerates, the results suggest the need for immediate discussions on how to alleviate unemployment and income instability caused by AI disruption.
“The Generated AI is changing the rules of the game,” continued RESHEF. “It’s not just about reducing opportunities for less skilled workers. It’s always going to the heart of what has made top performers successful. This technology forces workers to rethink how they compete and support them in an AI-driven economy.”
The findings underscore the need for businesses and policymakers to address the evolving impact of AI on digital labor and develop strategies to protect workers from unintended consequences.
More information: Xiang Hui et al., Short-term impact of generative artificial intelligence on employment: Evidence from the online labour market, Organizational Science (2024). doi:10.1287/orsc.2023.18441
Provided by Institute for Operations Research and The Management Sciences
Quote: Generic AI maintains freelance jobs. Top performers are also not safe, researchers obtained from March 8, 2025 from https://phys.org/news/2025-03-general-ai-onedinding-freelance-safe.html.
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