University of Copenhagen Study Reveals AI’s Complex Impact on Freelance Job Demand Following ChatGPT Launch

University of Copenhagen Study Reveals AI’s Complex Impact on Freelance Job Demand Following ChatGPT Launch

(IN BRIEF) A new study published in the Journal for Economic Behaviour and Organization explores the changing landscape of freelance job demand following the release of ChatGPT in late 2022. The study found that job categories like copywriting, translation, and simple programming saw a decline due to automation, while sectors such as machine learning, chatbot development, and creative content production experienced growth. The research indicates that while AI is reshaping the labor market, it is not leading to widespread job elimination. Instead, it is creating new opportunities in more specialized areas. The shift is particularly evident in short-term jobs and those requiring less experience. The study highlights the need for workers to adapt and emphasizes the importance of continuous learning and creativity.

(PRESS RELEASE) COPENHAGEN, 30-Jan-2025 — /EuropaWire/ — A new study, recently published in the Journal for Economic Behaviour and Organization, reveals the significant shifts in freelance job demand following the introduction of ChatGPT in late 2022. The findings show that while certain job categories such as translation, copywriting, and simple programming have seen a noticeable decline, other areas have experienced an uptick in demand, suggesting that AI is not necessarily eliminating jobs but reshaping the labor market.

The study, conducted by Ole Teutloff from the Copenhagen Centre for Social Data Science (SODAS), analyzed over three million freelance job postings across various skill profiles. It found that job postings in areas where AI can perform tasks traditionally carried out by humans, such as real estate content writing and website “About Us” page creation, dropped by as much as 50%. In contrast, job demand increased in sectors such as machine learning, chatbot development, and creative text and video production.

Teutloff, the study’s lead researcher, remarked, “While AI is undoubtedly having a transformative effect on the labor market, it is not resulting in a mass disappearance of jobs. Instead, we’re seeing a shift in the kinds of jobs that are in demand, with new roles emerging even as others fade.” The research highlights that more complex and creative roles continue to require human involvement, while simpler, repetitive tasks are increasingly being automated.

The study also notes that short-term jobs and positions requiring limited experience have been most affected by AI-driven changes. These jobs, particularly those with a duration of 1-3 weeks, are increasingly being replaced by AI technologies capable of performing the tasks more efficiently. However, more intricate and specialized work, such as those involving high levels of creativity or expertise, still relies on human workers.

Johanna Einsiedler, co-author of the study, emphasized the broader implications: “The job market is evolving faster than we expected, and we are likely only seeing the early stages of AI’s impact. The shift in demand for jobs could continue to accelerate, particularly in the freelance sector, which has been impacted more quickly than other parts of the economy.”

As AI reshapes the workforce, the study’s authors argue that both employers and employees must adapt quickly. New skillsets will be required, and workers will need to cultivate the ability to learn continuously and embrace change. Teutloff also pointed out the urgent need for policymakers to consider the speed of technological advancement and its effects on education systems, which traditionally take time to adjust to new demands.

The study, “Winners and Losers of Generative AI: Early Evidence of Shifts in Freelancer Demand,” was co-authored by Teutloff, Einsiedler, Otto Kässi, Fabian Braesemann, Pamela Mishkin, and R. Maria del Rio-Chanona. It provides valuable insight into how AI, specifically ChatGPT, has begun to influence the gig economy and freelance workforce.

For more information on the study and its findings, visit the Journal for Economic Behaviour and Organization.

About the study

The study ‘Winners and losers of generative AI: Early Evidence of Shifts in Freelancer Demand’ has been published in Journal for Economic Behavior and Organization.

Behind the study is an international group of researchers. In addition to first author Ole Teutloff and Johanna Einsiedler, both from SODAS at the University of Copenhagen, contributors include Otto Kässi of ETLA Economic Research in Finland, Fabian Braesemann of the Oxford Internet Institute, Pamela Mishkin, USA, and R. Maria del Rio-Chanona of University College London.

The study analyses freelance jobs posted on an international platform (anonymised) focusing on how the introduction of ChatGPT changed the demand for skills partitioned into 116 clusters.

These were grouped into three aggregated clusters:

• Skills that can be substituted by AI tools
• Skills where AI tools are complementary
• Skills that are not affected by AI

The latest version of ChatGPT was used when defining the individual and aggregated skill clusters.

Media Contacts

Ole Teutloff
Affiliated Researcher, Copenhagen Center for Social Data Science (SODAS),  University of Copenhagen (UCPH)
CTO, Datenwissenschaftliche Gesellschaft Berlin (DWG)
Email: ole.teutloff@sodas.ku.dk
Mobile: +49 176 50 50 20 88

Johanna Einsiedler
PhD student, Copenhagen Center for Social Data Science, UCPH
Email: johanna.einsiedler@sodas.ku.dk
Telephone: +45 35 33 21 30

Søren Bang
Journalist, Faculty of Social Sciences, UCPH
Email: sba@samf.ku.dk
Mobile: +45 29 21 09 73

SOURCE: University of Copenhagen