Empowerment of digital start-ups in the gig economy through digital employees – A systematic review

Abstract

The exponential growth of the gig economy has influenced the emergence of unique labour market and business operation models that challenge traditional work organisation. Additionally, AI-powered agents are increasingly replacing roles previously occupied by human digital employees. Yet, academic understanding of digital employees remains conceptually unclear and lacks methodological grounding. This study presents a systematic literature review to examine how digital employees influence the success of digital start-ups operating within gig economy models. It also explores how scholars and practitioners define the digital workforce. The review follows the PRISMA framework to ensure transparency and structure and adopts Braun and Clarke's six-stage thematic analysis to identify key themes across three clusters: emerging concepts of digital employees, characteristics of digital start-ups and the role of digital employees in empowering start-ups. NVivo 12 software supported coding and data management. Findings reveal that while digital employees offer flexibility and lower operational costs, start-ups face challenges in talent acquisition, engagement, performance management and cultural alignment. The study introduces the concept of a ‘digitally fluid workforce’, with implications for future policy and business models. These insights offer practical value for entrepreneurs, policymakers and stakeholders navigating the evolving digital labour landscape.