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Paper Number
1763
Paper Type
Complete
Abstract
Leveraging the launch of ChatGPT, this study investigates how artificial intelligence (AI) influences different online labor markets (OLMs). Employing the Difference-in-Differences method, we discovered two distinct scenarios following ChatGPT’s launch: 1) displacement effects featuring reduced work volume and earnings, exemplified by translation & localization OLM; 2) productivity effects featuring increased work volume and earnings, exemplified by web development OLM. Theoretically, we developed a Cournot competition model to identify that an inflection point exists for each occupation. Before this point, human workers benefit from AI enhancements; beyond this point, human workers would be replaced. Further investigation into the progression from ChatGPT 3.5 to 4.0 revealed three evolving patterns of AI’s effects, reinforcing our inflection point conjecture. Heterogeneous analyses reveal that U.S. web developers tend to benefit more from ChatGPT’s launch compared to their counterparts in other regions. Experienced translators seem more likely to exit the market than less experienced translators.
Recommended Citation
Qiao, Dandan; Rui, Huaxia; and Xiong, Qian, "AI and Freelancers: Has the Inflection Point Arrived?" (2024). ICIS 2024 Proceedings. 10.
https://aisel.aisnet.org/icis2024/aiinbus/aiinbus/10
AI and Freelancers: Has the Inflection Point Arrived?
Leveraging the launch of ChatGPT, this study investigates how artificial intelligence (AI) influences different online labor markets (OLMs). Employing the Difference-in-Differences method, we discovered two distinct scenarios following ChatGPT’s launch: 1) displacement effects featuring reduced work volume and earnings, exemplified by translation & localization OLM; 2) productivity effects featuring increased work volume and earnings, exemplified by web development OLM. Theoretically, we developed a Cournot competition model to identify that an inflection point exists for each occupation. Before this point, human workers benefit from AI enhancements; beyond this point, human workers would be replaced. Further investigation into the progression from ChatGPT 3.5 to 4.0 revealed three evolving patterns of AI’s effects, reinforcing our inflection point conjecture. Heterogeneous analyses reveal that U.S. web developers tend to benefit more from ChatGPT’s launch compared to their counterparts in other regions. Experienced translators seem more likely to exit the market than less experienced translators.
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