TRENDS Research & Advisory has released a new study, AI and the Gig Economy: How AI is Reshaping Freelance and Contract Work. The study provides an in-depth analysis of the accelerating impact of artificial intelligence on the nature of freelance and contract work, amid growing reliance on digital platforms and project-based employment.

Authored by researcher Noor Al-Mazrouei, Senior Researcher and Head of the AI Program at TRENDS, the study asserts that AI has become a central force in restructuring the gig economy. It enhances matchmaking mechanisms between clients and freelancers through advanced algorithms considering skills, availability, and previous ratings, contributing to faster hiring processes and improved project outcomes.

The study highlights how algorithm-based project allocation has altered competition dynamics in the digital marketplace. Online reputation and user ratings have become decisive factors in accessing opportunities, which may exacerbate income inequality and limit entry for newcomers.

The research also observes the emergence of new digital job types created by AI technologies, such as training machine learning models, testing intelligent systems, and consulting on AI ethics. These developments demand advanced and specialized skills, presenting opportunities and challenges for professionals in this evolving field.

However, the study warns that increased reliance on AI tools for performance evaluation and wage determination threatens income stability and job security. It also undermines workers’ bargaining power without transparency in algorithm design and information sharing.

The study calls for urgent public policy intervention to regulate this rapidly growing sector. Recommendations include promoting transparency, adopting fair standards for digital labor, and supporting skill development programs to ensure equitable access and long-term employment sustainability in the future workplace.