Upwork: Impact of AI

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Summary

Bullish Bearish
Freelance company heads are excited about AI[1]. Outsourcing heads also hold a positive view on AI[2]. AI will potentially replace certain jobs[3].
Google considers AI generated content as spam[4]
U.S. Copyright Office cannot grant copyright ownership to AI generated content[5]
AI will need to be guided by humans so as to avoid errors[6].
Clients are hiring for AI related tasks and the pace of hiring has grown following the launch of ChatGPT[7].
Website traffic to Upwork hasn't deteriorated following the launch of ChatGPT[8]
Freelancers upskill at a faster rate than traditional workers[9]
C-Suite plans to hire more workers as a result of generative AI[10].

Projected Impact of AI on Labor Market

AI is expected to replace certain jobs. According to Accenture report, 40% of working hours across industries will be impacted by Large Language Models (LLMs). Banking, Insurance and software jobs will be affected the most. Their potential for automation is 54%, 48%, and 36%, respectively. Their potential for augmentation is 12%, 14% and 21%, respectively[11].

Another report by Goldman Sachs indicate that roughly two thirds of occupations in US and EU could be partially automated by AI. Of those occupations that are exposed, roughly a quarter to as much as half of their workload could be replaced. However, jobs displaced by automation could be replaced by creation of new jobs[12]. Tenzai estimates that U.S alone could see a 30% rise in the demand for AI skills[13].

Has there been a change in Upwork's website traffic following the surge in AI?

Analysis of Upwork's website traffic in the past three months on SimalarWeb reveals that Upwork is moving in the right direction. However its website traffic declined 6.44% month-over-month in February before growing 9.25% month-over-month in March[14].

Source: Similarweb










Hiring for AI related tasks is on the rise

According to LinkedIn data, jobs mentioning ChatGPT rose by 51% year-over-year in 2022. Additionally, the week ending March 20 saw the number of posts mentioning generative AI keywords in U.S grew 38% week-over-week and 138% year-over-year[15].

Analysis of 304,000 jobs posted in Freelancer.com shows that Generative AI skills (ChatGPT, Dall-E, Midjourney, Chatbots) grew the fastest in Q1, growing by 325% Q/Q to 1,216 from 286[16].

Additionally, a recent study by Upwork found that searches for "AI" services on Fiverr rose 1,089% in the past 6 months compared to the previous six months period. AI searches rose 6,973% while searches for artificial intelligence grew 56%. The report notes, "Since the beginning of the year, earnings for freelancers offering AI services related to programming & tech — such as AI app development — were responsible for the majority of revenue for AI services."[17]

Upskilling

Freelancers tend to upskill at a higher rate compared to traditional workers. According to Deloitte, In 2019, 60% of freelancers or gig workers(alternative workforce) upskilled in the past six months compared to just 40% of traditional workers[18].

Category Never updated skills Updated skills over a year ago Updated Skills within the last year Updated skills within the last six months Updated skills within the last month
Traditional workers 17% 32% 11% 18% 22%
Alternative workforce 8% 24% 9% 18% 42%

Jobs likely to be affected by AI

  • Web and digital interface designers.[19]
  • Video game creators[20].
  • Programming jobs[21].
  • Photographers and digital image creators[20].
  • Software developers and engineers.[20]
  • Bankers[21].
  • Manufacturing jobs[21].
  • Interpreters and translators[19]
  • Survey researchers[19].
  • Poets, lyricists and creative writer[19].
  • Animal scientists[19].
  • Writers and authors[19].
  • Financial quantitative analysts[19].
  • Tax preparers[19].

Will AI replace UX/UI Design jobs?

AI can make similar designs as human at a fast speed and low cost. But their designs lack human feedback. However, it's expected to replace Graphic Design jobs at the bottom of the pyramid such as logo designs, drag and drop templates and stock photography and illustrations. Also, those designers who refuse to move with technology would likely be replaced as the rest gets augmented by AI. Gig platforms offering graphic design jobs will likely pivot but over the long-term, AI will become the dominant factor[22].

Will AI replace developers?

Companies will still hire developers since AI won't replace human logic. However, since AI will enable developers to write code faster, companies will hire few developers. It might also replace entry level and repetitive developer jobs[23]. In future, AI may turn developers into senior administrators[24].

Our analysis of ChatGPT/AI jobs posted in Upwork found that these jobs require also developer skills[25].

C-Suite plans to hire more workers as a result of the surge in AI

According to a new study of 1,400 U.S business leaders commissioned by Upwork, C-Suite will increase hiring of workers as a result of generative AI. 64% of the business leaders said they will hire more workers. 49% said they will hire more freelancers and 49% said they will hire more full-time workers. The report also found that midsized companies are leading in generative AI adoption as 62% of midsized companies (501-5,000 employees) said they are leveraging generative AI, compared to 41% of larger companies (5,001+ employees) and 56% of small companies (251-500 employees)[26].

Usage of ChatGPT in America

Wordfinder survey of 1,024 Americans found that[27];

  • Gen Z is leading in ChatGPT's usage, with over 6 in 10 using it regularly.
  • Around 1 in 4 Americans use ChatGPT for work.
  • The leading industries in terms of usage are tech(62%), health(59%), marketing(56%).
  • 62% of respondents said ChatGPT is their first AI tool.
  • ChatGPT usage at work is mainly to generate ideas(41%0, content creation(20%), and responding to Emails(14%).
  • 73% of AI experts believe ChatGPT will increase efficience while 68% of them said it will automate tasks.
    Source: Wordfinder








Source: Wordfinder








Developments

August 22, 2023: Upwork released the top generative AI searches and hires in first half of 2023. Here is the list[28];

Position Top 10 generative AI-related searches from companies Fastest growing generative AI-related searches on Upwork (Q2 2023 vs. Q1 2023) Top 10 generative AI-related projects clients hired freelancers
1 ChatGPT AI Content Creation ChatGPT
2 BERT Gradio Natural Language Processing(NLP)
3 Stable Diffusion Azure OpenAI Tensor Flow
4 Tensor Flow Convolutional Neutral Network Image Processing
5 AI Chatbot Large Language Models(LLMs) PyTorch
6 Generative AI Generative AI AI Content Creation
7 Image Processing AI Chatbot Midjourney
8 PyTorch Midjourney AI Chatbot
9 Natural Language Processing(NLP) Prompt Engineering Model Tuning
10 Bard PyTorch Stable Diffusion

July 11, 2023: Upwork launches new generative AI tools and services hub to make it easy for businesses to find AI talent and for freelancers to find AI opportunities. The company said that weekly job posts related to generative AI have grown by over 450% year-over-year. Starting today also, Upwork will offer talent an exclusive 30-day free trial of Jasper generative AI services "for copywriting, marketing, and image creation." Upwork is also launching AI beta features powered by OpenAI, which include Job Post Generator, Upwork Chat, Proposal Tips, and Additional Resources[29].

References

  1. ↑ https://seekingalpha.com/article/4580682-fiverr-turning-chatgpt-lemons-into-ai-lemonades https://www.cnbc.com/video/2023/02/14/ai-benefits-outweigh-risks-if-used-responsibly-says-fiverr-ceo-micha-kaufman.html
  2. ↑ https://www.investmentwiki.org/wiki/Upwork:Quarterly_Results/2023_Q1#:~:text=On%20AI%5B,%5B6%5D.
  3. ↑ https://www.investmentwiki.org/wiki/Upwork:_Impact_of_AI#:~:text=Impact%20of%20AI%20on,jobs%5B6%5D.
  4. ↑ https://www.searchenginejournal.com/google-says-ai-generated-content-is-against-guidelines/444916/
  5. ↑ https://seekingalpha.com/article/4580682-fiverr-turning-chatgpt-lemons-into-ai-lemonades
  6. ↑ https://www.searchenginejournal.com/will-chatgpt-take-your-job/476189/
  7. ↑ https://www.investmentwiki.org/wiki/Upwork:_Impact_of_AI#:~:text=Hiring%20for%20AI%20related%20tasks%20is%20on%20the%20rise%5B,over%2Dweek%20and%20138%25%20year%2Dover%2Dyear%5B9%5D.
  8. ↑ https://www.investmentwiki.org/wiki/Upwork:_Impact_of_AI#:~:text=%5B8%5D.-,Has%20there%20been%20a%20change%20in%20Upwork%27s%20website%20traffic%20following%20the,before%20growing%209.25%25%20month%2Dover%2Dmonth%20in%20March%5B9%5D.,-Source%3A%20Similarweb
  9. ↑ https://www.investmentwiki.org/wiki/Upwork:_Impact_of_AI#:~:text=services.%22%5B15%5D-,Upskilling,-%5Bedit%20%7C
  10. ↑ https://www.investmentwiki.org/wiki/Upwork:_Impact_of_AI#:~:text=According%20to%20a,%5B25%5D.
  11. ↑ https://www.accenture.com/content/dam/accenture/final/accenture-com/document/Accenture-A-New-Era-of-Generative-AI-for-Everyone.pdf
  12. ↑ https://www.goldmansachs.com/insights/pages/generative-ai-could-raise-global-gdp-by-7-percent.html
  13. ↑ https://www.linkedin.com/posts/senthilnathanr_tenzai-status-of-ai-a-2022-review-2023-activity-7027155538006200320-x9pW/?originalSubdomain=me
  14. ↑ https://www.similarweb.com/website/upwork.com/#traffic
  15. ↑ https://africa.businessinsider.com/markets/linkedins-top-economist-explains-the-ai-trend-that-could-mark-a-tipping-point-and-the/wn1k5f2
  16. ↑ https://s3.amazonaws.com/press.freelancer.com/Freelancer%20Fast%2050%20Q1%202023%20Index%20-%20Freelance%20Creative%20Jobs%20Thrive%20Despite%20AI%20Surge.pdf
  17. ↑ Source: Fiverr Business Trends, Spring 2023
  18. ↑ https://www2.deloitte.com/us/en/pages/operations/articles/future-of-gig-economy-shared-services-delivery-model.html
  19. ↑ 19.0 19.1 19.2 19.3 19.4 19.5 19.6 19.7 https://www.forbes.com/sites/joemckendrick/2023/03/26/most-jobs-soon-to-be-influenced-by-artificial-intelligence-research-out-of-openai-and-university-of-pennsylvania-suggests/?sh=3a9e67e373c7
  20. ↑ 20.0 20.1 20.2 https://www.cnbc.com/2023/04/15/these-are-the-tech-jobs-most-threatened-by-chatgpt-and-ai.html
  21. ↑ 21.0 21.1 21.2 https://www.forbes.com/sites/ariannajohnson/2023/03/30/which-jobs-will-ai-replace-these-4-industries-will-be-heavily-impacted/?sh=5ee943125957
  22. ↑ https://www.youtube.com/watch?v=LMT-RO-_TbA https://www.youtube.com/watch?v=MwAAH9tBoMg https://www.youtube.com/watch?v=LwLKY0g5UeE&t=17s
  23. ↑ https://www.youtube.com/watch?v=DnMz4M8qfr4
  24. ↑ https://www.youtube.com/watch?v=brAwZ5l_fuQ
  25. ↑ https://www.upwork.com/nx/jobs/search/?q=chatgpt,%20ai&sort=recency
  26. ↑ https://investors.upwork.com/news-releases/news-release-details/c-suite-increase-hiring-result-generative-ai-according-new
  27. ↑ https://wordfinder.yourdictionary.com/blog/how-chatgpt-is-catching-on-in-america/
  28. ↑ https://investors.upwork.com/news-releases/news-release-details/upwork-unveils-top-10-generative-ai-related-searches-and-hires
  29. ↑ https://investors.upwork.com/news-releases/news-release-details/upwork-launches-new-generative-ai-tools-and-services-hub
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