AI threatens 7,800 jobs at IBM, says CEO
Krishna says that within five years, up to 30% of the 26,000 non-customer-facing roles could be replaced by automation
May 03, 2023
IBM's CEO, Arvind Krishna, said that the company is looking to downsize its back-office workforce by almost a third, amounting to around 7,800 jobs, as the positions are becoming redundant due to advances in artificial intelligence.
Krishna expects that within five years, up to 30% of the 26,000 non-customer-facing roles could be replaced by automation. However, an IBM spokesperson clarified that there is no blanket hiring pause, and the company is still hiring for specific roles.
The move comes as the development of generative AI is making it easier to execute less complex work, such as certain human resource tasks and data management, reducing the need for human intervention.
Krishna's announcement comes after Goldman Sachs predicted that up to 300 million jobs could be lost to AI-powered automation. While the technology has the potential to automate up to a quarter of current work tasks in the US and Europe, it is still prone to errors, and companies have only entrusted it with simple tasks for now.
However, the development of advanced AI, such as ChatGPT, has led tech giants to release new AI technologies at dangerous speeds, according to Geoffrey Hinton, a prominent figure in AI research.
Hinton recently announced that he was leaving Google's AI research team and criticised Microsoft for releasing ChatGPT-style technology too quickly, potentially threatening jobs and posing a danger to society.
With the rapid development of AI, it is crucial to balance the benefits of automation with potential job losses and the risks posed by advanced technology.
As such, companies should prioritise upskilling their workforce and investing in areas where humans have a comparative advantage over machines, such as creativity, problem-solving, and emotional intelligence.
