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News

IBM to Replace 7.8K Jobs with AI: A Threat or Opportunity?

May 2, 2023 - Around 3 mins mins to read

Key Points:

  • IBM is expecting to pause hiring for “back-office” roles that could be potentially automated by AI.
  • IBM CEO Arvind Krishna expects 30% of “back-office” positions to be replaced by AI over the next five years.
  • AI-based automation has already helped IBM save well over $1 billion in business expenses and maintenance costs.
International Business Machines Corp (IBM) is expecting to put a “pause” on hiring for “back-office” roles that could be potentially automated by artificial intelligence (AI) instead.
IBM to Replace 7.8K Jobs with AI A Threat or Opportunity

This move is part of the company’s effort to adopt AI technology to improve its operations, reduce business expenses, and increase efficiency.

IBM CEO Arvind Krishna explained in a May 1 interview with Bloomberg that many “back-office” positions such as those in the human resources and accounting departments will likely be the first to be automated by AI. According to Krishna, AI has the potential to replace around 30% of these positions over a five-year period. This means that around 7,800 jobs could be handed over to AI, out of the 26,000 non-customer-facing staff that IBM has.

Despite this, Krishna thinks that human resource roles that evaluate workforce composition, measure productivity, and other tasks that benefit from human judgement likely won’t be replaced over the next decade. Many industry pundits remain at crossroads on whether AI actually has the potential to leave humans without work on a mass scale.

A recent study found that 62% of Americans think that implementing artificial intelligence in the workplace will have a “major impact” on workers within the next 20 years, leaving many employees feeling “wary” and “worried” about what their future holds. However, more tech-savvy employees feel slightly more secure about their future, believing that AI will only serve as a tool to increase efficiency, rather than wipe out their jobs.

In fact, some blockchain developers such as Salman Arshad and Syed Ghazanfer believe that the combination of human input and AI technology offers much more versatility than a complete transition to AI automation. They view ChatGPT and AI tools as a “blessing” rather than enemies, and that they are not here to end the career of a developer.

On the other hand, Dominik Schiener, the founder of the IOTA Foundation, believes that AI will take away employment opportunities from humans, but at the same time, AI and robotic process will create new jobs. He predicts that we’ll see more and more humans being forced to pivot to new roles that may look nothing like anything they’ve ever done.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News

AI

AI Technology

IBM

International Business Machines Corp

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

IBM to Replace 7.8K Jobs with AI: A Threat or Opportunity?

Key Points:

  • IBM is expecting to pause hiring for “back-office” roles that could be potentially automated by AI.
  • IBM CEO Arvind Krishna expects 30% of “back-office” positions to be replaced by AI over the next five years.
  • AI-based automation has already helped IBM save well over $1 billion in business expenses and maintenance costs.
International Business Machines Corp (IBM) is expecting to put a “pause” on hiring for “back-office” roles that could be potentially automated by artificial intelligence (AI) instead.
IBM to Replace 7.8K Jobs with AI A Threat or Opportunity

This move is part of the company’s effort to adopt AI technology to improve its operations, reduce business expenses, and increase efficiency.

IBM CEO Arvind Krishna explained in a May 1 interview with Bloomberg that many “back-office” positions such as those in the human resources and accounting departments will likely be the first to be automated by AI. According to Krishna, AI has the potential to replace around 30% of these positions over a five-year period. This means that around 7,800 jobs could be handed over to AI, out of the 26,000 non-customer-facing staff that IBM has.

Despite this, Krishna thinks that human resource roles that evaluate workforce composition, measure productivity, and other tasks that benefit from human judgement likely won’t be replaced over the next decade. Many industry pundits remain at crossroads on whether AI actually has the potential to leave humans without work on a mass scale.

A recent study found that 62% of Americans think that implementing artificial intelligence in the workplace will have a “major impact” on workers within the next 20 years, leaving many employees feeling “wary” and “worried” about what their future holds. However, more tech-savvy employees feel slightly more secure about their future, believing that AI will only serve as a tool to increase efficiency, rather than wipe out their jobs.

In fact, some blockchain developers such as Salman Arshad and Syed Ghazanfer believe that the combination of human input and AI technology offers much more versatility than a complete transition to AI automation. They view ChatGPT and AI tools as a “blessing” rather than enemies, and that they are not here to end the career of a developer.

On the other hand, Dominik Schiener, the founder of the IOTA Foundation, believes that AI will take away employment opportunities from humans, but at the same time, AI and robotic process will create new jobs. He predicts that we’ll see more and more humans being forced to pivot to new roles that may look nothing like anything they’ve ever done.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News