IBM plans to replace nearly 8,000 jobs with artificial intelligence

IBM plans to replace nearly 8,000 jobs with artificial intelligence

IBM CEO Arvind Krishna announced the hiring halt earlier this month, but that's not all. He also mentioned that the company plans to replace nearly 8,000 jobs with AI.

Krishna indicated that back-office jobs, specifically in the Human Resources (HR) sector, would be the first to experience these changes.

The transition will happen gradually over the next few years, with machines potentially taking up to 30% of non-customer-facing roles in the five years. This means those working in finance, accounting, human resources, and other fields will likely face stiff competition from bots and algorithms.

The decision highlights the increasing reliance on automation and artificial intelligence in various sectors and the potential impact on the workforce.

This isn't the first time the company has made headlines for job cuts. Earlier this year, IBM announced it would cut 3,900 jobs, indicating a larger trend toward automation and cost-cutting measures in the technology industry.

While IBM isn't the only tech giant that has been downsizing recently, with layoffs also coming from Meta Platforms Inc. and Amazon.com Inc. and Twitter Inc., and Microsoft Corp. Obviously, AI is rapidly changing the workforce.

The writing has been on the wall for some time, as experts have sounded the alarm about AI's ability to replace human workers for decades. This trend has not gone unnoticed by policymakers, as the White House issued a report in December warning that it was "inevitable" that AI would replace some workers.

Krishna remains optimistic about the prospects for artificial intelligence in the workplace, noting the technology's potential to free up thousands of hours of labor-intensive tasks in finance, accounting, and human resources. Artificial intelligence is expected to add $16 trillion to the global economy by 2030.

The prospect of mass automation looms large, as a new report by economists at Goldman Sachs reveals that as many as 300 million full-time jobs worldwide could be affected by the latest wave of AI technology, including ChatGPT. The report notes that 18% of all businesses worldwide will likely be replaced by machines, with more developed economies being hit the hardest.

This news signals a major shift in how businesses operate in the digital age. This is likely only the beginning. Artificial intelligence is quietly becoming a part of our daily lives. Startups like AvaWatz are using advanced technology to build teams of autonomous AI-powered bots. These are used to run farms, clean up airports, and other operations. While ChatGPT and other programs rapidly increase team efficiencies, that may cause less growth in certain functions.