Want to fill your skills and AI adoption gap? Hire freelancers, finds Upwork

Freelance is the future of work.

That’s the conclusion of new research from both Upwork and Remote.

The traditional full-time model—designed for stability and scale—is now struggling to keep up with the pace of change,” Kelly Monahan, Managing Director of the Upwork Research Institute, tells UNLEASH.

For the inaugural Future of Workforce Index, Upwork surveyed 3,000 US knowledge workers and found that 28% are now freelance or work independently – this translates to over 2 million individuals in the US.

Freelancing is evolving into a more sophisticated and intentional career path; this was the standout finding in the research for Monahan.

“Highly educated professionals aren’t turning to freelance work because they’re out of options. They’re choosing it because it offers more flexibility, higher earning power, and faster skill development.”

Upwork’s data found that the average earning for freelancers is $85,000 per year ($5,000 higher than for full time employees).

This is confirmed by Remote’s survey of 1,900 employers and 3,000 freelancers across the world – the research found that 29% of freelancers believe the biggest advantage of freelance is that they are paid more for their work.

Full time workers are keen to get on board, with one in three considering freelance in the future. Plus, just 10% of freelancers want to return to full time employment.

Remote’s data shows that only 7% of freelancers want to return to traditional employment.

Upwork found that 82% of freelancers report more work opportunities than a year ago, compared to just 63% of full time employees.

Freelancers are good for business

Not only is freelance the type of knowledge work that individuals want to do, but there are huge benefits to business, according to Upwork and Remote’s data.

52% of employers told Remote that they have increased their use of skilled freelancers over the past three years, with 46% saying this is because of challenges in filling roles.

According to Upwork’s research, skilled freelancers are helping companies with skills and performance gaps, and also moving the needle on AI adoption and implementation.

54% of freelancers report advanced or expert AI proficiency, compared to 38% for full time employees.

Upwork’s data shows that high growth companies – aka those in the top 25% for year-on-year revenue growth – are far ahead in embracing freelancers (46% have already embedded this type of worker), and this is helping with their business bottom lines.

As a result, Upwork’s Monahan tells UNLEASH that her message to HR leaders is “it’s time to start viewing freelancers not as temporary fixes, but as a core part of the workforce strategy”.

“They’re highly motivated, future-ready, and often bring critical skills that businesses need to stay ahead.

And with so many skilled professionals choosing independent work as their primary path, it’s no longer about when companies will adapt—but how.”