A recent study led by an international team of researchers, including Dr Fabian Braesemann from the Oxford Internet Institute at the University of Oxford, has explored the transformative effects of Generative AI technologies, such as ChatGPT, on the workforce. This research, published on 29 January 2025 in the Journal of Economic Behavior & Organization, analysed over three million job postings from a global freelancing platform, making it the most extensive study.
The findings of this comprehensive study highlight the complex influence of Generative AI on the labour market. While it has created new opportunities in specific sectors, it has simultaneously reduced demand for jobs in other areas. Specifically, the study notes a significant decline in demand for positions that involve highly repetitive writing tasks, where ChatGPT and similar tools can effectively replace human labour. Jobs that include skills susceptible to automation, such as writing and translation, have decreased demand by 20 to 50 per cent.
Conversely, the advent of Generative AI has spurred demand for new jobs that complement these technologies. The excitement surrounding AI has fuelled the development of new AI-related products and services, leading to nearly a tripling of employment in areas like chatbot development and natural language processing. This indicates that while some skills are becoming less sought after due to technological substitution, there is a significant rise in demand for skills that can augment the capabilities of AI technologies.
The study also sheds light on the varying impact of AI on workers with different levels of experience. For tasks that can be automated by Generative AI, such as writing and translation, the most substantial decrease in demand has been observed among experienced workers. In contrast, there has been a notable reduction in demand for less experienced workers for jobs requiring complementary skills, such as coding, as employers increasingly prefer candidates with more substantial experience.
Notably, the researchers emphasise that Generative AI is not leading to the widespread destruction of freelance jobs as many had feared. Instead, the overall demand for freelancing work has grown since the introduction of ChatGPT. This trend reflects the broader digital transformation of the economy that began with the rise of computers and the Internet.
Dr Braesemann noted that Generative AI is merely accelerating a shift that began decades ago with the digitalisation of the workplace. While demand for some skills is declining, new opportunities are emerging in fields like chatbot creation and machine learning-related positions.
The research team, comprising experts from various international institutions, including the Copenhagen Center for Social Data Science and the ETLA Economic Research, alongside industry professionals, provides a nuanced view of how Generative AI is reshaping the job market. Dr. Ole Teutloff and Assistant Professor R. Maria del Rio-Chanona, co-authors of the study, highlighted that while these technological changes present challenges for workers, there are also significant opportunities for enhancing efficiency and developing innovative products and services.
In summary, this landmark study suggests a balanced view of the impact of technologies like ChatGPT on the job market. It highlights essential shifts in demand for different skills, suggesting that while some areas may see reduced demand, others may experience an increase, particularly where more excellent expertise is required. Recognising and adapting to these shifts is crucial for navigating the evolving work landscape.
More information: Ole Teutloff et al, Winners and losers of generative AI: Early Evidence of Shifts in Freelancer Demand, Journal of Economic Behavior & Organization. DOI: 10.1016/j.jebo.2024.106845
Journal information: Journal of Economic Behavior & Organization Provided University of Oxford