Who is AI Replacing? The Impact of ChatGPT on Online Freelancing Platforms

Abstract

This paper studies the impact of generative AI technology on the demand for online freelancers, using a large dataset from a leading global freelancing platform. We focus on how the demand effect of the release of ChatGPT differs across various jobs that require different skills or software. Our findings indicate a 14% decrease following the ChatGPT introduction in the number of job posts in jobs associated with writing, statistical analysis, electronic engineering, accounting research, and web development when compared to jobs associated with data entry, video services, and audio services, which require more manual tasks. Furthermore, we utilize prior evidence on AI exposure to different occupations and Google Trends to demonstrate that the more pronounced decline in freelancer demand within those specific occupations is linked with their heightened exposure to AI technology, as well as higher general public awareness of ChatGPT's substitutability.

Keywords: Generative AI, large language models, ChatGPT, digital freelancing platforms

JEL Classification: O33, E24, J21, J24