Generative AI tools like ChatGPT are reshaping the job market, significantly reducing demand for freelance positions involving routine tasks. A study by researchers from Harvard Business School, the German Institute for Economic Research, and Imperial College London found a 21% decline in demand for automation-prone freelance jobs just eight months after ChatGPT’s launch in late 2022. Writing jobs were the hardest hit, followed by software, app, and web development roles.
The study, which analyzed over 1.3 million job postings on a global freelance marketplace, revealed that demand for graphic design and 3D modeling work also fell by 17% after the release of AI tools like Midjourney and Stable Diffusion. As competition for remaining freelance jobs intensifies, compensation rates may drop, further squeezing workers in these fields.
Researchers note that skills complementing AI tools—such as critical thinking, creativity, and emotional intelligence—are becoming increasingly valuable. This shift is expected to widen the gap between high-skill, high-wage roles and low-skill, low-wage jobs, prompting calls for targeted educational and workforce policies.
AI proponents argue that while short-term job displacement is likely, new opportunities for collaboration between humans and AI could emerge, potentially boosting productivity. Studies suggest this trend is already underway, with GPT-4 increasing task speed and quality for consultants by up to 40% and ChatGPT reducing time spent on business document creation by 40%. Researchers caution, however, that governments must prepare to support displaced workers through education, training, and social safety nets as the labor market continues to evolve.
