The gig economy has expanded rapidly over the past decade. What started as a niche way for people to earn extra income has grown into a major part of the global workforce and a backbone of the U.S. economy. Digital platforms made this shift possible by connecting workers with flexible opportunities. Now, artificial intelligence is shaping the next wave, changing how work is organized, delivered, and optimized.
The question is: will this next wave make things better, or create new challenges?
The Gig Economy By the Numbers
The global gig economy is valued at $582.2 billion in 2025 and projected to reach $2.17 trillion by 2034, with a CAGR growth of 15.79%. In the US, the market is expected to reach a total of $191.1 billion in 2025.
As of 2025, 42 million people in the US were engaged in some form of gig work. Over a third of US side hustlers expect to rely on supplemental work indefinitely, with another 26 million projected to enter the side-hustle economy by 2027.
Americans are seeking additional income due to rising living costs. Major cities carry significantly higher living expenses compared to smaller areas. As of April 2025, the average cost of living index stands at 70.4, reflecting essential expenses such as housing, food, and transportation.
Last year, Massachusetts had the highest living costs in the continental US, second only to Hawaii nationwide. Housing is the primary driver, with data showing that about 34% of residents spend more than a third of their income on rent or mortgage payments.
Meanwhile, 2.9 million New Yorkers spend more than 30% of their income on housing, classifying them as “cost burdened.” Within that group, many are considered “severely cost burdened,” paying over half of their income toward housing.
How AI is Transforming the Gig Economy
86% of employers expect AI to reshape their business operations by 2030. Since artificial intelligence (AI) systems are now in place in several businesses, regulations should be put in place.
Recently, workers have begun engaging more with AI systems that are capable of distributing tasks, processing payments, and managing communication. This change offers operational efficiency and economic growth but also introduces risks, particularly concerns around wage suppression, employment volatility, and widening income disparities.
As major tech firms lead AI development, making more available systems, their growing influence over labor markets raises concerns about slowing job growth and long-term employment stability.
To ensure the gig economy remains equitable, policymakers need to address worker classification, benefits, and labor protections. Clear regulations for AI use can reduce risks such as bias, privacy breaches, and job displacement, while promoting transparency, data protection, and safeguards against discrimination. Strengthening worker protections is essential to prevent exploitation and maintain fair conditions.
Gig Jobs Most Vulnerable to the Disruption of AI
The widespread adoption of AI in 2025 could displace 85 million jobs worldwide by 2025. However, despite the volatility, there's a positive outlook in the future, with it being temporary as the technology will also create new job opportunities, helping to absorb displaced workers in different roles, creating 97 million new roles, highlighting a volatile labor outlook.
However, it is essential to take note that AI's impact on the gig economy may vary depending on the type of job, with the most significant effect on roles involving repetitive, pattern-based tasks. Some of the most well-known jobs already impacted by automation and AI-driven alternatives are content writing, data entry, transcription, customer support, and basic coding.
On the other hand, creative workers using standard design tools now compete with AI systems capable of producing high-quality visuals in seconds. Likewise, entry-level digital marketers are seeing core functions, like scheduling and analytics, automated. Even knowledge-based sectors such as legal research and consulting are beginning to adopt AI tools that reduce reliance on human input for routine tasks.
Meanwhile, gig workers working for Uber and Lyft are already experiencing what automation could do in their field of work. Uber, in partnership with Lucid, plans to have robotaxis on the roads of a major US city in 2026. As advances in self-driving technology continue, they may reduce and potentially replace the demand for human drivers.
Emerging Opportunities in the AI-Driven Gig Economy
While AI is automating parts of gig work, it’s also creating demand for new roles that require technical literacy and human oversight. One emerging area is prompt engineering, where professionals develop effective inputs to guide AI systems. These roles are in high demand, with companies offering salaries exceeding hundreds of thousands of dollars. AI trainers and auditors are also gaining traction, tasked with refining machine learning models, correcting biases, and ensuring outputs align with ethical and contextual standards.
In creative fields, freelancers combine AI tools with domain expertise. Designers using generative platforms are developing more advanced branding strategies, while writers leveraging AI for research produce more in-depth analysis.
Another example is for those in the accounting field. The study done by assistant professor of accounting at Stanford Graduate School of Business, Jung Ho Choi, and PhD ’20, of MIT Sloan School of Management Chloe Xie, cited that generative AI is enhancing their productivity rather than replacing accountants, generative AI is enhancing their productivity.
AI enables accountants to serve more clients, accelerate month-end close, and improve the overall quality of service. By automating repetitive workflows and flagging inconsistencies in real time, AI allows for faster and more accurate reporting.
“AI helps with multitasking,” Choi explains. “In order to support each client, accountants have to pull information, connect bank transactions, track vendors — a lot of prework. AI assists with that setup, which means they can serve more clients, more efficiently.”
“We’re hearing that AI can help synthesize information and standards for auditors to quickly get the gist of what matters,” he says. “But that final judgment call — that’s still a human decision.”
Staying Competitive in an AI-Driven Market
As AI reshapes the value of skills, freelancers who remain competitive will focus on tasks requiring human judgment and creativity or the areas where AI still falls short. Three strategies stand out: strategically adopting AI tools, moving toward higher-value problem-solving, and building a credible professional presence.
With this, writers can automate research but focus on original storytelling, and designers might use AI-generated visuals within broader creative strategies. Instead of only editing videos, offer storytelling and brand consultation. Rather than just producing articles, deliver in-depth industry analysis.
Reputation is another key differentiator. As AI tools commodify basic tasks, companies are placing more value on proven expertise and trust. Freelancers can stand out by specializing, sharing insights publicly, and maintaining an active presence on platforms like LinkedIn.
The rise of niche gig roles illustrates the growing demand for specialized skills in the digital labor market. While these opportunities may offer higher pay, they also require workers to continuously adapt and master new tools and methodologies, including proficiency in advanced technologies.
Gig workers looking to tap into new opportunities should focus on skills like AI literacy, data analytics, and digital strategy. Learning platforms such as Coursera, edX, and LinkedIn Learning offer relevant courses for gig workers looking to stay ahead in an evolving market. The competitive edge lies not in competing with AI—but in managing and improving it.
Growing Influence of AI on Digital Nomads
The gig economy’s expansion has fueled growth in the digital nomad lifestyle, especially among highly educated professionals seeking remote work flexibility. AI and automation underpin this shift by providing essential tools and payment systems that facilitate location-independent work.
AI-powered collaboration platforms and cloud software enable seamless communication across distances, while AI-driven translation tools reduce language barriers, expanding opportunities for global client engagement. These technologies have also streamlined payments, broadening the geographic reach for both employers and workers beyond traditional centers.
What’s Next for Gig Workers
The integration of AI into the gig economy presents both disruption and opportunity. Forecasts suggest that while automation could displace millions of roles, it is also expected to create nearly 97 million new ones worldwide, reshaping the labor market rather than shrinking it outright. The freelancers most likely to succeed will be those who adapt by combining technical literacy with uniquely human skills such as critical thinking, creativity, and client trust.
At the same time, policy decisions will play a critical role. Clear standards on worker protections, algorithmic transparency, and equitable access to AI tools will determine whether these shifts widen inequalities or foster sustainable growth. For freelancers, the road ahead is less about competing with AI than learning how to manage, guide, and complement it.
Disclaimer: Giggle Finance provides Revenue-Based Financing programs for business purposes only. Any mention of any loan product(s), consumer product(s), or other forms of financing is solely for marketing and educational content purposes and to help distinguish Giggle Finance’s product from other comparable financing options available in the markets.
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