As the gig economy continues to grow, a new challenge emerges for freelancers: the impact of AI-powered automation. A recent study reveals that AI is not only disrupting low-skilled jobs but also high-skilled ones, leaving workers with precarious work conditions and decreased income.
At one time, freelancing was seen as a liberating choice for young professionals, but today it’s a harsh reality for billions of workers around the world. The gig economy has become a dominant force, with companies breaking up full-time positions into contract work that offers little stability or protection under labor laws.
The numbers are staggering: over 76 million Americans were freelance workers in 2024, up from 64 million in 2023, accounting for over 36 percent of the workforce. This trend is expected to continue, with projections suggesting that over 50 percent of the workforce will be freelancers by 2028.
While some may view this shift as a positive development, labor experts warn that self-employment is a dangerous precedent that allows companies to skirt labor laws and minimize worker benefits. In reality, many workers are being forced into freelance arrangements due to cost-cutting hiring practices, leaving them with little choice but to accept precarious work conditions.
The Dark Side of AI: How Automation is Affecting Freelancers
A recent study by researchers at Washington University and NYU’s Stern School of Business has shed light on a new challenge facing freelancers: the proliferation of artificial intelligence. Contrary to promises that AI would automate ‘unskilled’ jobs, allowing humans to focus on more thoughtful work, the research suggests that AI is having a devastating impact on high-skilled jobs as well.
Artificial intelligence (AI) is transforming the freelancing landscape, offering new opportunities for professionals to work with clients worldwide.
AI-powered platforms connect skilled freelancers with businesses seeking specialized services.
According to a report, 63% of companies plan to increase their use of freelance workers in the next five years.
Freelancers can leverage AI tools to streamline workflows, enhance productivity, and deliver high-quality results.
As AI continues to evolve, it is expected to create new job categories and redefine traditional employment models.
The study found that for every 1 percent increase in a freelancer’s past earnings, they experience an additional 0.5 percent drop in job opportunities and a 1.7 percent decrease in monthly income following the introduction of AI technologies. This means that if today’s AI is any indication, tomorrow’s AI will continue to flatten just as many high-skilled jobs as low-skilled ones.
According to a report by Upwork, 63% of companies are already using AI tools to manage their freelance workforce.
This has led to an increase in demand for freelancers who can work effectively with AI systems.
Freelancers can utilize AI-powered tools to streamline tasks, improve efficiency, and enhance productivity.
However, they must also be aware of the potential risks associated with AI, such as job displacement and bias.
The Consequences of an AI-Powered Future
Big tech companies have been pushing for an AI-powered future, promising liberation and efficiency gains. However, the reality is far from it. ‘AI is being used to siphon money away from workers, lining the pockets of company owners instead.’ The research highlights that anyone who claims otherwise is either duped by big tech’s promises or was in on the game from the start.
Big Tech companies, such as Google, Amazon, Facebook, and Microsoft, have made significant investments in Artificial Intelligence (AI) research and development.
They have established dedicated AI labs and teams to explore applications in areas like natural language processing, computer vision, and machine learning.
According to a report by CB Insights, 70% of the top AI startups received funding from Big Tech companies.
This strategic investment has enabled them to accelerate innovation and integrate AI into their products and services.
A Glimmer of Hope: Unions Pushing Back Against an AI-Driven Future
Despite the bleak outlook, there are signs of resistance emerging. A handful of well-organized unions are pushing back against the enshittification of labor, asserting their right to quality work in the face of automation. From militant dockworker strikes to successful stoppages by nurses and graduate students, these efforts demonstrate that workers will not go quietly into the night.
The question remains: what will we do about it? As AI continues to disrupt the labor market, it’s clear that a fundamental shift is needed to protect worker rights and ensure a more equitable future.
- futurism.com | Freelancers Are Getting Ruined by AI
