Fewer job posts for gig workers with GenAI
The introduction of GenAI tools ChatGPT and image-generating led to nearly immediate decreases in jobs for online gig workers across job types, but particularly for automation-prone jobs. After the introduction of ChatGPT, there was a 21% decrease in the weekly number of posts in automation-prone jobs compared to manual-intensive jobs. Writing jobs were affected the most (30.37% decrease), followed by software, app, and web development (20.62%) and engineering (10.42%).
Three researchers, presenting their results in Harvard Business Review, have studied 1,388,711 job posts from a leading global online freelancing platform from July 2021 to July 2023, focusing on the introduction of ChatGPT and image-generating AI.
“The short-term impact of GenAI on specific roles — especially those susceptible to automation — has been swift and unavoidable. Compared to traditional automation technologies, the speed and extent of GenAI’s effect are unprecedented. As shown in our study, automation-prone jobs like writing and coding saw significant declines in demand while new types of work requiring AI-related skills began emerging”, they write.
The researchers are Ozge Demirci, Assistant Professor at Imperial College London Business School, Jonas Hannane, Ph.D. candidate at DIW Berlin and the Berlin School of Economics via TU Berlin and Xinrong Zhu, Assistant Professor of Marketing at Imperial College London Business School.
Their research is focusing on three types: manual-intensive jobs (e.g., data and office management, video services, and audio services), automation-prone jobs (e.g., writing; software, app, and web development; engineering), and image-generating jobs (e.g., graphic design and 3D modelling).
“A similar magnitude of decline in demand was observed after the introduction of popular image-generating AI tools (including Midjourney, Stable Diffusion, and DALL-E 2) were introduced. Within a year of introducing image-generating AI tools, demand for graphic design and 3D modelling freelancers decreased by 17.01%”, they write.
The study shows that freelancers with certain skills may face more competition for limited jobs.
“Due to the already fierce competition for jobs in online labour markets, the growing substitutability, for employers, between freelancer jobs and GenAI can lead to a further decline in job opportunities in the short term.”
The say that industries with greater public awareness about GenAI’s potential experience a larger decline in freelancer demand.
“Interestingly, job posts that include “ChatGPT” in their skill requirement also saw an increase. In the period after ChatGPT introduction, we found 903 job posts listing ChatGPT in the skill tags. In addition, more than 88% of these jobs fall into automation-prone categories, with the majority (82%) specifically related to software, app and web development.”
“The number of job posts seeking “ChatGPT” skills has grown steadily, with an average increase of 0.68 posts per week since its introduction.”
“These results suggest that the ability to integrate AI tools into work is becoming increasingly valued, and workers are likely updating their skill sets to include GenAI capabilities. This shift underscores that reskilling is not only underway but is also becoming an essential response to the evolving job market driven by GenAI advancements.”
The researchers write that while some job replacements are inevitable, companies have a critical role in shaping how AI is integrated into their operations.
Their recommendations for companies in short:
- Approach matters. Proactive, transparent communication with employees about AI’s potential to reshape the job market is essential. While some job replacement will occur, transparency about the nature of these changes can help mitigate uncertainty and foster a culture of adaptability, preparing workers for this next wave of technological disruption. Embrace GenAI as an opportunity to upskill and reskill.
- Skills. As job roles evolve to integrate AI tools, companies need to focus on building a workforce equipped with a diverse set of skills that adapt to and complement these technological shifts.
- Recent findings also indicate a substantial gender gap in the usage of ChatGPT at work, with women being significantly less likely to adopt ChatGPT in the same occupations. This highlights the need for tailored training programs to address these disparities and ensure equitable access to the advantages of gen AI across all employees.
- Management. Managers will also need to develop new competencies, particularly in AI task delegation. Understanding which tasks to assign to AI systems versus human employees will be critical in maximising efficiency while preserving human creativity and oversight. As AI takes on more routine functions, managers must focus on leading teams in ways that leverage the unique strengths of both human and machine capabilities.
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