Arvind Krishna, the CEO of IBM, announced that the business is set to replace almost 8,000 jobs Jobs With AI. Back-office operations, particularly those in the human resources (HR) industry, will experience these changes first, according to Krishna.
Machines may replace up to 30% of non-customer-facing roles in the next five years as a result of the gradual transition that will take place over the coming years. This implies that employees in the financial, accounting, HR, and other sectors will probably face intense competition from robots and algorithms. The decision highlights the increasing reliance on automation and artificial intelligence across various sectors and the potential impact on the workforce.
It’s not the first time the company has made headlines for cutting jobs. Earlier this year, IBM also announced that it would be slashing 3,900 jobs, indicating a larger trend toward automation and cost-cutting measures in the tech industry.
While IBM isn’t the only tech giant to downsize recently, with layoffs also hitting Meta Platforms Inc., Amazon.com Inc., Twitter Inc., and Microsoft Corp., it’s clear that AI is rapidly transforming the workforce.
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. Policymakers have taken note of this trend, as evidenced by the White House releasing a report in December that warns of the “inevitable” displacement of some workers by AI.
Prospects of AI in the workplace
Krishna remains bullish 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. Projections indicate that AI will contribute a staggering $16 trillion to the global economy by 2030.
The new report by Goldman Sachs economists reveals that the prospect of mass automation looms large, with up to 300 million full-time jobs worldwide potentially affected by the latest wave of AI technology, including the likes of ChatGPT. In addition , the report suggests that machines could potentially replace 18% of all work globally, and the most advanced economies would face the hardest impact.
This news signals a major shift in the way companies are operating in the digital age. And it’s likely this is only the beginning. AI is quietly becoming a part of our everyday lives. Startups like AvaWatz are using advanced technology to roll out teams of AI-driven autonomous robot teams. These are used to operate farms, clear airfields and a host of other operations. While ChatGPT and other programs are quickly increasing efficiency in teams that might cause less growth in certain jobs.