Solopreneurs boom as generative AI reshapes workforce productivity

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As OpenAI’s chatbot ChatGPT celebrates its first anniversary on Thursday, the noticeable rise in “solopreneurs,” one-person businesses equipped with the latest artificial intelligence technology, is leading to changes in traditional business structures.

As the use of generative AI technology enhances productivity, highly skilled professionals such as consultants, graphic artists, and AI developers are also experiencing a boost in their productivity. Forecasts suggest a shift in talent development towards AI-assisted support for top-tier talents.

According to recent research on the impact of AI tools on work productivity jointly conducted by Harvard Business School and Boston Consulting Group Inc., consultants can increase their productivity by up to 42.5 percent when using generative AI tools. Skilled workers benefit from broad knowledge in specific areas, known as “domain knowledge,” allowing them to effectively use generative AI in various contexts, the research finds.

“In the past, we needed talents in different tiers, but now that AI has essentially become auxiliary staff, there is no reason to hire even low-skilled or low-tier talents,” a representative from an information technology company said.

South Korean startup TDI Co., which provides big data and AI-based marketing solutions, has maximized revenue and operating profits by introducing AI and streamlining its workforce. TDI reduced its total number of employees from 150 to 30, while simultaneously hiring 40 local developers in Vietnam as part of its market expansion. Despite the overall staff reduction from 150 to 70, this resulted in a 46 percent increase in revenue, reaching 12.1 billion won ($934.3 million) in 2022, up from 8.3 billion won the previous year.