How AI is Already Affecting Freelancers’ Employability and Earnings

Xiang Hui, Oren Reshef, and Luofeng Zhou (2023). The Short-Term Effects of Generative Artificial Intelligence on Employment: Evidence from an Online Labor Market

Summary

This paper provides critical insights into the impact of generative AI, particularly ChatGPT and other image-based models, such as Dall-E2 and Midjourney, on the employment outcomes in online labor markets.

The study highlights a notable decline in employment and earnings for freelancers in highly affected occupations, including those offering writing-related services and image/design-related occupations. Importantly, the adverse effects of AI on employment were not moderated by the quality of the freelancer's service. Even top performers, measured by past performance and employment, experienced these detrimental impacts.

Specifically, the analysis reveals notable negative impacts of ChatGPT's release on freelancer activity on the

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