The recent rise of AI has significantly impacted the freelance market these last few years. This change is continuing as both freelancers and companies adapt. We’ve seen how quickly AI is improving and how fast freelancers have had to adapt to offer work companies are still interested in. While this change can cast a dark shadow on the future of freelance, there’s also a silver lining.
The study
Harvard Business School, the Imperial College Business School, and the German Institute for Economic Research conducted a study that found that since ChatGPT launched in November 2022, the demand for online freelancers in coding and writing has decreased by 21%.
Fields of work that can be automated, such as writing, app development, and software engineering, have had a 21% slump in job postings. More manual work, like data entry, saw a 13% drop, while image creation jobs, like graphic design, experienced a 17% decrease. The researchers also found that the decline is more significant in fields that know of and use generative AI thanks to Google search trends.
While the above results are negative, there is a silver lining as an MIT study entitled “Beyond AI Exposure:
Which Tasks are Cost-Effective to Automate with
Computer Vision?” paints a slightly more positive picture. The study found that since developing AI systems is very expensive, many tasks are not at risk of being automated. Because the cost of automating work with AI would outweigh the cost of human workers. The study found that the pace of AI job replacements will be slower than anticipated.
How freelancers can compete against AI
For freelancers, it’s more imperative than ever to remain competitive and offer high-quality services. While AI has evolved rapidly, it remains limited and still needs a lot of tweaking before being a valid number-one solution. The freelancers most impacted by AI offer low-quality and cheap services. It’s logical when you think about it. These services are the easiest ones for AI to replace. Since they were already low-quality, clients are glad to receive the same low-quality services for free instead of paying a low price. There are a few things to do to ensure AI does not impact you too much as a freelancer.
1. Capitalize on your skills and talents.
As a freelancer, you need to leverage your expertise in a given field and use it to separate yourself from other freelancers. The more you are an expert, the more you attract serious clients looking for your expertise. High quality means better results. So don’t sell your services at a discount. Instead, you should highlight the value your services provide for clients.
2. Hone in on a niche.
Niche experts are usually in high demand because there aren’t many, and they command different levels of expertise that ensure results and high quality.
3. Learn new skills and keep evolving
Regardless of the field you work in, there are always new changes and information. Keep growing and polishing your skills to stay competitive. With the growth of AI, you can find ways to leverage that growth to gain efficiency and accuracy.
The rise of high-quality services
On ComeUp, we’ve also felt the impact of AI tools. We’ve noticed that the most impacted freelancers are the ones that offer low-quality and cheap services. But we’ve also witnessed that clients are more willing than ever to pay for high-quality services. In November 2022, the average basket on ComeUp was $60. It is now around $100 in May of 2024. This confirms the trend we’ve been observing. While cheap services have been replaced by AI, high-quality services are still sought after by buyers. They are spending more than ever on high-quality services with added value.
Don’t fight AI, use it!
One of the most common reactions we’ve seen towards AI is the willingness to fight against it. While this may seem natural because of AI’s impact on the freelance work market, it’s not the most constructive approach. Some savvy freelancers have realized that and decided to leverage AI to use it to get more work done and achieve better results. There’s still a lot AI cannot do. Images generated by AI may have flaws or issues in them. Written content can have mistakes, repetition, or false information. Code can have errors and mistakes that can dramatically impact the system. That’s where an expert ensures everything is faultless and perfect. This expertise enables you to save time on the overall work while producing a better final result.
On ComeUp, we’ve added categories for sellers to offer AI freelance services. That way, sellers can leverage the growing demand for AI services. As demand for AI services continues to grow, it is a great career opportunity to develop skills and learn how to leverage AI to enable it to yield better results. You will save time and acquire new buyers doing so.
Conclusion: Adapt to overcome the rise of AI
The rise of AI has significantly impacted the freelance work market, and it’s not over yet. For freelancers, it’s more important than ever to adapt. They need to offer services that match the current demand. By proposing high-quality services that can’t be automated, focusing on a niche, and learning to leverage AI, you’re putting all the chances to succeed in the current shift on your side. Keep evolving as a freelancer and offer high-quality services to thrive.
