Unexpected Losers of Generative AI

In the realm of AI, tech giants like NVDA, MSFT, and GOOGL often steal the limelight. But at LikeFolio, we're diving deeper, looking beyond the obvious to identify the unexpected winners and also losers in the AI revolution.

We’ve touched on AI ripple-effect winners before. (Think Spotify, The Trade Desk, etc.).

But here are 2 companies that may suffer as AI gets better and better….

Today, let’s consider the negative ramifications of generative AI on freelance platforms.

Namely, Upwork (UPWK) and Fiverr (FVRR).

These platforms have been the go-to for companies seeking quick, affordable freelance services. But with generative AI, especially the likes of ChatGPT venturing into image generation, the demand for certain freelance services might diminish.

Why wait for a new design when AI can generate one instantly?

Check this out – I generated these with GPT’s beta extension in less than a minute!

And why pay when it's virtually free?

LikeFolio's data paints a telling picture: Fiverr's web traffic has dipped by 5% YoY, while Upwork has seen a 12% YoY increase.

This could be attributed to Upwork's focus on long-term contracts, offering a temporary cushion. But as AI continues to evolve, even this buffer might erode.

Bottom line: Generative AI is not just a tool; it's a game-changer. While it might help lift many companies who can effectively leverage the technology, it also spells potential trouble for platforms like Fiverr and Upwork, whose demand is generated by users who need a quick (and often easy) fix.