ChatGPT's AI platform is considered a significant threat to Fiverr's freelance ecosystem, particularly for content creators. However, the doomsday predictions may be premature and overstated.
Goldman Sachs predicts that if generative AI achieves the desired productivity through task automation, it may impact up to 300 million full-time jobs globally. However, it also concedes that most jobs and industries are only partially exposed to automation and are more likely to be complemented by AI than substituted.
Another research paper by the University of Pennsylvania and OpenAI states that about 80% of the US workforce could see at least 10% of their work tasks being impacted by the introduction of large language models (LLMs), like generative pre-trained transformers (GPTs).
However, it may take ChatGPT and its peers more time than expected to reach their full potential. The platform is not 100% foolproof, and it occasionally generates incorrect answers. Additionally, content creation evokes the author's signature, while AI content is often derivative and evokes the signature implemented by computer programmers.
Despite the risks, the free market should incentivize honest, human-created work for human consumption, and Fiverr benefits from long-term revenue growth. While FVRR may not enjoy the most stability regarding its balance sheet, it posted sales of $83.13 million in the fourth quarter of last year.
Wall Street analysts give FVRR stock a Moderate Buy consensus rating based on seven Buys and four Holds, with an average price target of $49.73, implying 77.3% upside potential.
