The Future of Sharing Economy with Artificial Intelligence

What is the Sharing Economy?

It is the modern-day concept in which the peers tend to make short term transactions. It is more like sharing access. People use products and services on a rental basis.

This sharing of the economy takes place within a community that can be connected and accessed online. Specific platforms specifically provide online platforms for the sellers and buyers.  

This concept of sharing economy is spreading widely, but at the same time, it is also facing many hurdles along its way. There is always a concern for exploitation by both ends.  

Sharing economies allow individuals and groups to make money from underused assets. In fact, the Sharing Economy model has a pretty interesting history.

The idea of a shared economy allows the groups and even individuals to make and save money from underused assets. 

For example, Uber is the best example of a shared economy where an individual does not need to own a car (asset) to go from one place to another. This model also eliminates the issue of parked vehicles.

Today, on average, a five-seater car is driven by one person to go from one place to another. This accelerates the underuse of cars by individuals. Therefore, what Uber provides is the platform for a shared economy related to vehicles, so peer-to-peer money transactions are possible and saved. 

This sharing economy is widespread in some countries where they even share basketball and sports accessories on rent. For China, this idea is a national priority, and it is due to this that its economy is excelling day by day. Other similar jobs for the sharing economy include odd jobs such as house cleaning, au-pairs, repairing, and furniture assembling jobs.

Pros and Cons for Sharing Economy

Every idea has its pros and cons, including the idea of a sharing economy. The pros include the fact that an individual does not have to stay at a full-time job to make money and pay for some unused assets that are statistically not used more than 5% in their lifetime. 

You can be your own boss, earn money and enjoy life at the same time. It allows the people to work on the things that matter to them the most rather than kill themselves for more money. 

When we consider the downside of the sharing economy, it includes individuals dependent on gig jobs to survive. In this situation, the individuals are somehow hanging by a thread and need a backup plan. 

The conveniences, like health insurance, paid leave, etc., are not part of such jobs.  

There is a good platform for gig jobs, and hours are flexible, but the assurance of monthly income and certainty of the health benefits is somewhat a downside.

Evolution in Sharing Economy

The idea of the sharing economy is the realm of entirely digital platforms. On the one hand, some businesses provide the same products and services at too high prices but on the other hand, with the digital world’s help, which connects the borrowers to the lenders, and the prices are considerably lower. This model is disrupting traditional business models. 

 The apps and platforms act as an intermediary. These play a big part as it helps in diminishing the uncertainty.  

 It is eliminating the idea of ownership and highlighting smart usage of assets. With time the concept of the sharing economy is evolving. Gig jobs in the U.S are based on the idea of a sharing economy. These are growing in the form of;

1. Co-working Platforms

These platforms are instrumental in the pandemic, as they provide the digital space for employees to work from home. One of the examples of such platforms is Slack.

2. Peer to Peer Lending

These platforms help connect lenders and buyers. This is extremely helpful for tourists and can rent the assets during the visit at cheaper rates. 

Other sites and applications are developed on the same concept of sharing and saving but targeting different markets. These include the areas for lending clothes, cars, and rooms, etc. 

The freelancing sites are also part of the shared economy model. The future of the sharing economy is bright, as we can see how it is conveniently spreading.

sharing economy model

Artificial Intelligence and Its Impact on the Sharing Economy

The trend of increase in technology has increased Artificial Intelligence. Artificial Intelligence can boost economic growth, but there are risks as well. It replaces many jobs. But many options have also opened up. It may become easy for those who accept and cope up with the advancements at a constant speed.

Thus, the individuals who will be behind in the technology cannot be equal to those who know. The people who will embrace this advancement will learn how to use the developed technologies.

Artificial Intelligence is changing our lives in many different ways, and now we have become dependent on it. AI has indeed taken over many jobs, but there are more jobs available as well. Artificial Intelligence is the oxygen of the sharing economy. The connection between customers and buyers is because of AI. 

Artificial Intelligence helps businesses to;

1. Get to Know the Targeted Audience Better

It is easy to know the preferences of your targeted customers. Then the businesses can modify their products and services accordingly. When you know your customers, it becomes easier to access and persuade them to buy your products.

AI is rapidly increasing communication and connectivity between people and businesses. Therefore, the shared economy is highly dependent on it.

Interested in how AI is changing the world? Check out 10 ways AI is likely to transform the future.

2. Predict and Analyze Customers Needs

To gain insights into the targeted market has become easier due to AI. AI interprets the inner need of the audience and caters to them quickly.

For example, at first Uber was providing rides. With the proper search and analysis, Uber was successful in realizing that delivering products from one place to another in a limited time. So Uber delivery is the modification in the already existing business model. 

AI fulfills the need for services to get smarter. In this way, the platforms and businesses remain a step ahead. In fact, there’s a plethora of ways AI helps brands improve customer experience by anticipating their needs.

It is not about how AI will impact; instead, it is a debate about how this idea for a shared economy depends on Artificial Intelligence.

sharing economy model

Conclusion

It is the Fourth Industrial Revolution. Artificial Intelligence is the catalyst for the sharing economy. Mostly now, people are accepting the line between ownership and access. It is smart to know to differentiate between necessity and peer pressure. No one should stay in an unsatisfied job to be successful in the eyes of the surroundings. This behavior is encouraging people to move to digital platforms and freelance their expertise in flexible hours. 

Artificial Intelligence has made life easier for those who know how to use it. The accumulation of property and money will not develop the world in any way. Due to AI, this is the global village era, and the sharing economy is beneficial for each and everyone in the future.

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