Freelancers Are Getting Ruined by AI

Yahoo

08-03-2025

At one time, freelancing was seen as the domain of plucky young writers and daring web designers. Now, it's a growing fact of life for billions of workers around the world, as companies break up full-time positions into contract work with less stability and protection by labor laws.
That was already becoming the case back in 2009, when the fallout of the Great Recession forced thousands of out-of-work professionals to become freelancers to pay the bills.
Jump ahead to 2024, when over 76 million Americans were said to be freelance workers, up from 64 million in 2023. That's over 36 percent of the workforce, a number that's expected to grow to over 50 percent by 2028, primarily driven by cost-cutting hiring practices.
Though Wall Street-backed think tanks and Fortune 500 companies laud freelance as the "future of work," labor experts warn that self-employment is a dangerous precedent that allows companies to shirk labor laws and keep worker benefits at a minimum.
While rosy think pieces would have you believe workers and employers alike prefer these types of "flexible" arrangements, they are increasingly becoming the only choice for many who would prefer full-time work, to the benefit of a select few.
Involuntary freelance is hard enough. But a recent study by researchers at Washington University and NYU's Stern School of Business highlights a new hardship facing freelancers: the proliferation of artificial intelligence. Though the official spin has been that AI will automate "unskilled," repetitive jobs so humans can explore more thoughtful work, that's not shaping up to be the case.
The research finds that "for every 1 percent increase in a freelancer's past earnings, they experience an additional .5 percent drop in job opportunities and a 1.7 percent decrease in monthly income following the introduction of AI technologies." In short: if today's AI is any indication, tomorrow's AI is going to flatten just as many high-skilled jobs as it will low-skilled.
It's compelling evidence that big tech's endless push toward an AI-powered future will continue to be a one-way street in our current labor environment.
Though AI is far from offering the kind of liberation tech moguls have been promising for years, it's nonetheless already being used to siphon money away from workers for the profit of those who own the companies.
The research hammers home the fact that AI isn't a cure-all for the problems with today's job market, and that anyone who tells you otherwise is either duped by big tech's enormous promises, or was in on the game from the start.
Whether freelance or full time, control of AI will ultimately fall to those who rule the current labor environment — but it doesn't have to. A handful of well-organized unions are pushing back against this grim future, asserting their right to quality work in the face of the enshittification of labor.
In October of last year, for example, a militant dockworker strike delayed the automation of America's ports, a development which would have destroyed thousands of well-paying jobs. Earlier in April, hundreds of members of the California Nurses Association successfully stopped slapdash AI tech from being rushed out by hospital administration.
At Boston University, striking graduate students and faculty with the Service Employees International Union Local 509 forced the administration to backtrack after suggesting AI could do the instructors' work while they organized for better working conditions.
It's not all going to be easy, especially for contract and freelance workers. But it's clear that the AI dystopia is already upon us, actively making conditions worse for workers right now. The only question left is, what will we do about it?
More on AI and labor: Y Combinator Pulls Support for AI Startup After Video of Boss Barking at Human Worker, Calling Him "Number 17"