IBM CEO Arvind Krishna has announced a hiring pause and a bold new plan to replace nearly 8,000 jobs with artificial intelligence (AI). This move marks a significant shift in the company’s workforce strategy and highlights the growing trend toward automation and AI in various sectors.
Krishna noted that back-office functions, specifically in the human resources (HR) sector, will be the first to face these changes. The transition will happen gradually over the next few years, with machines potentially taking over up to 30% of non-customer-facing roles in the five years. This means that workers in finance, accounting, HR and other areas will likely find themselves facing stiff competition from robots and algorithms.
IBM’s decision highlights the increasing reliance on automation and artificial intelligence across various sectors and the potential impact on the workforce. With the company set to replace thousands of jobs with AI, it is clear that this technology is rapidly transforming the workplace.
While IBM is not the only tech giant to downsize recently, with layoffs also hitting Meta Platforms Inc., Amazon.com Inc., Twitter Inc., and Microsoft Corp., it is leading the charge in the AI-powered future of work. The writing has been on the wall for some time, with experts sounding the alarm about AI’s potential to replace human workers for decades.
Krishna remains optimistic about the prospects of AI in the workplace, pointing to the technology’s ability to free up thousands of hours of labor-intensive tasks in areas such as finance, accounting, and HR.
AI is projected to add a staggering $16 trillion to the global economy by 2030.
However, this prospect of mass automation looms large, with a new report by Goldman Sachs economists revealing that up to 300 million full-time jobs worldwide could be affected by the latest wave of AI technology.
The report suggests that 18% of all work around the globe could potentially be replaced by machines, with the most advanced economies being hit the hardest.
AI technology is becoming more and more embedded in our lives. For example, companies like AvaWatz are using advanced tech to deploy teams of robot workers that are powered by AI. These robots are being used in a range of operations, including agriculture and airfield maintenance, and have been demonstrated to be highly effective. Technologies such as ChatGPT are rapidly improving team productivity, which could possibly lead to fewer job opportunities in some industries.
AI has already started to influence the job market in different sectors as companies start using automation to increase efficiency and lower expenditure. On the other hand, worries exist about how AI may affect human workers and thus it is important to take steps to assist those who are replaced by Artificial Intelligence.
Despite the difficulties, AI still has lots of advantages for the workplace. It can bring a higher level of productivity, accuracy & efficiency – potentially shaking up the way we work. As AI continues to advance, more transformations in work environments should be expected soon.
IBM’s choice to shift 8,000 roles to AI signals an evident change in their approach to staffing decisions and is highly indicative of the trend towards automation & AI implementation in different industries. While this might lead to job losses initially, AI has the capacity to totally revolutionize the way we work and its potential benefits cannot be overlooked.
As AI technology progresses, we can expect greater transformations in the workplace.
