The Impact of ChatGPT Launch on the Demand for Content Generation Services in the Freelancing Market

Abstract

The ongoing debate surrounding AI’s impact on the labor market has been fueled by the rise of generative AI. While some argue that it may displace jobs, others suggest it could create new opportunities and improve productivity. This study investigates the impact of the ChatGPT launch on the demand for human content generation services, using a difference-in-differences approach and data from the online labor marketplace Fiverr. Our investigation reveals a significant decrease in demand for human content generation services following the ChatGPT launch. Moreover, we explore the heterogeneity of the impact, identifying differential effects across service types, human writers’ education levels, and service pricing. Notably, we observe a significant increase in demand for idea planning services, while demand for text reviewing services and services provided by human writers with a PhD degree remains unaffected by the launch of ChatGPT. These results contribute to the ongoing debate on the impact of generative AI on the labor market and offer practical guidance for human writers navigating this evolving AI-driven landscape.

Keywords: Generative AI, human labor, ChatGPT, freelancing