Upwork achieved a record-breaking revenue milestone in 2024, attributing its financial growth to the increasing demand for artificial intelligence (AI) services. Businesses seeking AI expertise spurred notable engagement on the platform, leading to a substantial rise in AI-related projects. The company also introduced AI-driven enhancements to its platform, aiming to provide better support for freelancers and clients. These developments reflect broader industry trends, where companies are integrating AI solutions to optimize operations and workforce scalability.
Earlier financial reports from Upwork indicated steady but slower revenue growth compared to the surge in 2024. Previous years did not see AI-related work contributing as significantly to its overall earnings. The latest figures highlight how AI-focused services have become a primary driver of revenue, marking a shift in client demands toward emerging technologies. This trend aligns with the increasing reliance on AI across various industries, influencing hiring patterns and skill requirements in the digital economy.
How Did AI Contribute to Upwork’s Growth?
Upwork reported a 12% year-over-year revenue increase, reaching $769.3 million in 2024. The rise occurred despite a 9% decline in the broader staffing industry. AI-related projects saw a 60% growth in gross services volume (GSV), with a 42% increase in the number of clients engaging freelancers for AI work. Additionally, freelancers specializing in AI earned 44% more than those in other fields.
Upwork’s President and CEO, Hayden Brown, emphasized the growing demand for AI expertise across various sectors.
“We’ve rapidly unlocked demand for AI-related work on our platform,”
Brown stated in the company’s earnings call. She highlighted how Upwork has adapted to evolving market needs, similar to the rise of social media managers and mobile developers in previous years.
What AI Features Did Upwork Introduce?
In April, Upwork incorporated an AI assistant named Uma, designed to assist freelancers and clients with project matching, proposal drafting, and team structuring. The assistant aims to streamline operations and enhance efficiency for users engaging with the platform. Additionally, Upwork acquired Objective, an AI-native search-as-a-service company, improving search and matchmaking capabilities within its marketplace.
Upwork stated that these AI-driven enhancements are part of its strategy to strengthen user experience and expand AI talent accessibility.
“We are also leveraging AI on our platform to underpin the evolution of predictive and delightful conversational customer experiences,”
Brown said. The integration of AI tools is expected to improve hiring processes and optimize workflows for both freelancers and businesses.
The shift toward AI-powered freelancing highlights broader changes in workforce trends, as companies increasingly seek flexible staffing solutions to accommodate technological advancements. With AI growing as a dominant category on Upwork, businesses are leveraging specialized talent for tasks like AI modeling, data labeling, and AI integration. The rising demand signals a shift in how organizations approach workforce management, favoring adaptable and technology-driven hiring models.
As AI adoption continues, its impact on freelancing platforms like Upwork is likely to expand. Companies exploring AI-driven solutions may further influence the gig economy, shaping new work dynamics and skill demands. The increasing intersection of AI and freelancing underscores the necessity for professionals to adapt and upskill in response to evolving job market needs.
