Gig economy 2020
The new revolution
Workplaces are evolving and that’s a fact! But they are doing it at a faster and faster pace each year. Not even the C-Suite that lives on the fringe of technology couldn’t anticipate the growth of the Gig Economy in the last 5 years.
Rabbit, Airbnb, Lyft, Uber, Rover, Postmates, DoorDash, companies that brought innovation into the world of the gig economy, are now facing new challenges that will push the work market even more into the future. But what does Gig Economy mean?
2020 Gig economy definition:
The gig economy represents the total of flexible, consulting or freelance, temporary or full-time jobs, intermediated through an online platform that’s interconnecting people and businesses.
Benefiting workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand.
1. Cryptocurrency in the gig economy
In the last 5 years, the labor market has adopted new technologies to tier down office walls and allow people to work remotely from anywhere in the world. With high fees for the employers and long waiting time for the workers, traditional payment systems didn’t keep up with the revolution in the labor market.
Traditional payment systems:
If you work in a digital environment you should be paid in a digital currency!
Humans.net survey suggested that 38% of freelancers living and working in the US, periodically or regularly use cryptocurrencies. It also revealed that 1 in 3 freelancers would prefer to receive their payments in digital currencies than through the banking system.
Digital currencies are quickly gaining traction as they allow both employers and freelancers to save money and time.
But the revolution that will change permanently the payment system in the gig economy world in 2020 will come from Libra. The cryptocurrency developed by Facebook and back up by the Libra Association (made up of leaders in industries ranging from finance and technology to non-profits).
Libra is a global, digitally native, reserve-backed cryptocurrency built on the foundation of blockchain technology. People will be able to send, receive, spend, and secure their money, enabling a more inclusive global financial system.
2. Big Data in the gig economy
At the moment, data tends to become infinite and any business, corporation, firm that desires to grow with a meaningful pace would certainly be wise to understand how to leverage the vast amount of information accessible to drive growth.
Businesses are using vast quantities of information from linked companies to enhance their very own data in order to provide solutions.
The top companies of tomorrow will be the ones that have understood how to connect and leverage information into actionable insight. Technology is, and it will be, the top enabler of the gig economy. Just with a smartphone connected to the internet, anyone can secure a quick job or put the bases of a company. Big data brings companies the promise of transforming and improving the gig economy even further.
Until 2020, 43% of the US workforce is expected to have done at least one time some freelance related activities that involve also working remotely according to Nasdaq, and the good news is that Big Data has a strong potential to solve the problem of miss matching candidates. Algorithms design to crawl the infinite data stream can assist with the talent search by gauging the client’s demands and suggesting them with the optimal match for the job at hand.
Data collected from social media profiles, educational institutions, and different online platforms, help the future gig worker in the selection process but, companies need to find a way to harness that data in a legal and moral way.
Employment market transformations are well underway, and it’s clear that their pace of development cannot be slowed or stopped.
Big data will improve the matchmaking process on freelance marketplaces.
3. AI and automation in the gig economy
Starting from tech giants like Microsoft, Apple, Amazon to car-sharing platforms such as Uber and Lift, all of them are trying to improve and implement automatization for their services, replacing personal, drivers and delivery workers with autonomous vehicles and drones.
Uber represents one of the companies that shared early it’s vision and has been upfront with the idea of replacing drivers with autonomous vehicles in the near future. They are one of the companies that made the first large commercial purchases of cars intended for an automated fleet. Uber committed to buying 24,000 Volvo XC90 SUVs that will be delivered between 2019 and 2021.
The recent technological progress in the field of AI has pushed the frontier of what machines can do. Our society needs these improvements to provide value for businesses, contribute to economic growth, and make progress on some of our most difficult social challenges.
AI technologies list
Competitive pressure is one of the main drivers for AI adoption: companies general fear that they may be at a competitive disadvantage if they do not invest time and resources as much as rivals. But, this perception may miss the fact that being proactive can add significant value to early adopters.
All types of jobs will be influenced by AI automation, but only about 5 percent of jobs could be fully automated by our current level of technology. According to a Mckinsey report, “many occupations have portions of their constituent activities that are automatable: about 30 percent of the activities in 60 percent of all occupations could be automated.”
But the question is: ”how tunnel vision has made us miss the larger picture?” We usually have been focusing only on small gig jobs and we didn’t see that automatization brought highly skilled workers, such as lawyers and accountants into the Gig Economy as freelance consultants.
“16 percent of jobs will disappear due to automation technologies between now and 2025”, said Forrester analyst, J.P. Gownder, moving the workforce from repetitive tasks to jobs that require a higher level of creativity or emotional intelligence and putting an accent on social intelligence also.
The outcome of these will be that occupations will likely change and adapt, forcing most workers, from mechanics to lawyers and CEOs, from small and top companies to work alongside machines powered by an AI that is rapidly evolving.
49% of freelancers in an Edelman survey state that AI has already impacted the way they work. Even now, AI is changing the way how the gig economy operates. In the future, we should see further visible improvements in the hiring process, the payment experience, and business operations.
AI-driven recruiting has proved that it can be less discriminatory when it comes to race, age or gender. The new-generation AI has become rather well-versed in predicting personality attributes of candidates based on the data available to them. All of these features combined can make the Gig Economy process fairer, streamlined and effective for all parties involved.
Automation, robots and AI are usually considered as the bad guys for the future of work, where all they are doing is to take our jobs, but for the gig economy, this prediction could not be further from the truth.
The Future of Work report from analyst house Forrester states: “Automation will accelerate the need for and size of the gig economy, as it displaces jobs and sources the talent able to deliver on certain competencies and tasks. Automation will also enable the gig economy to exist by connecting buyers and sellers.”
So automation, robots and AI represents the catalyst that propels the Gig Economy into the future.
AI, Big Data and Cryptocurrencies will revolutionize the world of The Gig Economy by inspiring creativity
Rapid changes in the labor market created synergy between creativity and innovation, and the current technology revolution is pushing it even further. The workforce is moving from repetitive tasks to jobs that require a higher level of creativity or emotional intelligence and the help of AI and automation should be embraced by the entire Gig Economy community.
One thing that can’t be codified is our ability to connect emotionally with others. We should embrace technologies that free our time from meaningless tasks and aspire to more challenging and rewarding jobs.
The renewed interest and urgency in developing soft skills, particularly from tomorrow’s leaders, comes from Industry 4.0 movement that started in Germany and will reach maturity in 2020.
The gig economy is the response that our society provides in order to adapt to the rapid change that industry 4.0 brought.
The future sounds great for the gig economy where business owners and CEO’s will have tailored profiles from which to choose their perfect candidates and for freelance consultants, AI will help fast-track time-consuming tasks and unleash more time for their creative spirit.
AI, Big Data and Cryptocurrencies will bring both parties closer together for the revolution of the gig economy in 2020.
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How AI, Big Data and Cryptocurrencies influences your life?
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