IBM plans to replace 8 million jobs with AI

CEO Arvind Krishna of IBM made a significant corporate announcement in May. Initially, he announced a halt in hiring activities, and subsequently, he disclosed the company's strategic initiative to employ artificial intelligence (AI) for the purpose of substituting close to 8,000 job positions.

CEO Krishna emphasized that initial transformations will be witnessed in back-office operations, with particular focus on the human resources (HR) domain. In the preceding weeks, IBM has actively posted numerous vacancies for roles centered around artificial intelligence (AI), aimed at facilitating the creation and management of these innovative systems.

The transition is anticipated to transpire progressively within the forthcoming years, with the possibility of automation encompassing nearly 30% of roles not directly involving customer interaction over the span of five years. Consequently, professionals in finance, accounting, human resources, and related domains could potentially encounter formidable competition originating from robotic systems and algorithmic solutions.

The verdict accentuates the mounting reliance on automation and artificial intelligence across a spectrum of industries, drawing attention to the possible ramifications for the labor force.

This occurrence is not the inaugural instance of the corporation garnering attention for job reductions. Earlier this year, IBM also revealed its intention to eliminate 3,900 positions, pointing to a broader pattern of embracing automation and implementing cost-reduction strategies in the technology sector.

While IBM stands as one among several technology giants undergoing downsizing measures in recent times, similar layoffs have affected Meta Platforms Inc., Amazon.com Inc., Twitter Inc., and Microsoft Corp., underscoring the swift influence of artificial intelligence on workforce dynamics.

The signs of change have been apparent for a considerable duration, with scholars raising concerns about the prospective replacement of human labor by artificial intelligence spanning numerous decades. This trajectory has garnered the attention of policymakers, exemplified by the White House's issuance of a report in December that forewarns of the "inevitable" displacement of certain workers due to AI. Concurrently, venture capitalists have embarked on substantial investments in AI, seeking to capitalize on the market's expansion. An instance of this is the substantial infusion of capital by accredited investors into startups like RAD AI through their ongoing Wefunder campaign.

Krishna maintains an optimistic stance regarding the potential of AI within the professional landscape, highlighting the technology's capacity to liberate substantial amounts of labor-intensive hours across domains like finance, accounting, and HR. It's noteworthy that AI is anticipated to contribute a remarkable $16 trillion to the global economy by the year 2030.

The specter of widespread automation casts a significant shadow, as highlighted in a recent report from economists at Goldman Sachs. This study discloses that the current surge of AI technology, including entities such as ChatGPT, could potentially impact as many as 300 million full-time job positions globally. The report posits that machines have the potential to supplant approximately 18% of global labor, with the most advanced economies projected to experience the most pronounced effects.

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