ibm CEO, Arvind Krishna, announced a hiring halt in May, but that’s not all. Later that month, the CEO also mentioned that the company plans to replace approximately 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. In recent weeks, the company has opened dozens of positions for AI-based roles to help develop and maintain these systems.
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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 that those working in finance, accounting, human resources, and other fields will likely find themselves facing 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 also announced that it would cut 3,900 jobs, indicating a larger trend towards automation and cost-cutting measures in the technology industry.
While IBM isn’t the only tech giant that has been downsizing lately, with layoffs as well Meta Platforms Inc.And Amazon.com Inc.And Twitter Inc.And Microsoft Corporation.Obviously, AI is rapidly transforming 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 a report Last December, he warned that it was “inevitable” that some workers would be homeless because of Amnesty International. Similarly, venture capitalists have been pouring billions into AI as they look to capture growth in this market. For example, accredited investors have invested millions in startups such as radio in their ongoing work Wefunder Campaign.
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Krishna remains optimistic about the prospects of artificial intelligence in the workplace, noting the technology’s potential to free up thousands of hours of labor-intensive tasks in areas such as 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 the likes of ChatGPT. The report notes that 18% of all businesses around the world will likely be replaced by machines, with more developed economies being hit the hardest.
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