Upwork Publishes Study on Impact of GenAI on Workforce

Leveraging the data available on its platform, freelancer website Upwork published a white paper on the impacts of GenAI on the workforce, with early data showing a net positive effect.

Overall, the study carried out by the Upwork Research Institute observed that since the beginning of the expansion of GenAI, there has been “a rise in the total number of job posts and the average spend per new contract created.” This so-called “high-value work” spreads across all groups of work categories.

Many had feared that GenAI would replace certain jobs, even though history has shown that technology tends to create more jobs than it removes. Historical trends also show that the newly created jobs tend to focus on more complex tasks and drive up the value of those jobs.

While certain job sectors might seem to be slowing down, others with higher paying contracts are already starting to increase. For example, demand for skills in Data Science and Analytics seems to be responsible for an increase of over 8% in freelance earnings.

However, this trend is not distributed evenly across all categories of work. Accounting & Consulting, Administrative Support, and Legal Services have seen increased earnings of 6-7%, while design and customer service have seen an increase in earnings of 4%. Writing and translation has seen an increase of less than 2%.

GenAI may be replacing repetitive tasks, leaving positions with higher-value tasks in demand. Overall, Upwork has observed “net positive gains from generative AI.”

Given that there is an increase in demand for more specialized premium skills, Upwork’s research also concludes that professionals must leverage educational and upskilling programs to ensure they adapt to the changing work landscape to reap the benefits that GenAI is introducing.

To carry out the study, Upwork analyzed the data from their platform between 2021 and the third quarter 2023. The analysis took other external economic factors into account, as well as the effects of seasonal hiring to attempt to better isolate the effect of GenAI.

While it is still too early to draw definitive conclusions on the impact of GenAI on the workplace, the initial trends demonstrate that Upwork’s freelance platform is, for the most part, benefiting from this new technology.