3 - 6 minute read
International Business Machines Corp. (IBM) announced on May 1 that it expects to pause hiring for back-office roles that could be potentially automated by artificial intelligence (AI) instead. According to IBM CEO Arvind Krishna, many back-office positions such as those in the human resources and accounting departments will likely be the first to be automated by AI. He added that he could easily see 30% of these positions replaced by AI over a five-year period. IBM employs 282,000 employees globally, and around 26,000 non-customer-facing staff. This means that around 7,800 jobs could potentially be handed over to AI.
According to some reports, AI-based automation has already helped IBM save well over $1 billion in business expenses and maintenance costs. Among the tasks that may be automated include providing employment verification letters or moving employees between departments. However, Krishna thinks that human resource roles that evaluate workforce composition, measure productivity, and other tasks that benefit from human judgment likely won’t be replaced over the next decade.
Dropbox: Laying off 500 people and replacing them with AI
— Genevieve Roch-Decter, CFA (@GRDecter) May 1, 2023
IBM: Pausing hiring for ~7,800 roles that could be done by AI
AI is already replacing jobs
Many industry pundits remain at crossroads on whether AI actually has the potential to leave humans without work on a mass scale. A recent study found that 62% of Americans think implementing artificial intelligence in the workplace will have a “major impact” on workers within the next 20 years, leaving many employees “wary” and “worried” about what their future holds. The more tech-savvy employees, however, feel slightly more secure about their future.
“You know what your company wants to do. You can tell ChatGPT, and it can perfectly transform your commands into a smart contract, auditing process, document or white paper.”
It’s crucial to note that AI is not here to end the career of developers, according to blockchain developers Salman Arshad and Syed Ghazanfer. Instead, it’ll only serve as a tool to increase efficiency. On the other hand, Dominik Schiener, the founder of the IOTA Foundation, believes that AI will take away employment opportunities from humans but at the same time, AI and robotic process will create new jobs.
For AI to work, it must be built responsibly. IBM CEO Arvind Krishna shares how organizations can prepare for the challenges and opportunities ahead in @FortuneMagazine: https://t.co/WYBu6VUCuc pic.twitter.com/gZtLwTNklb
— IBM (@IBM) April 24, 2023
The Bottom Line
IBM’s announcement regarding its plans to pause hiring for back-office roles that could be potentially automated by artificial intelligence (AI) is not surprising. With AI-based automation having already helped IBM save well over $1 billion in business expenses and maintenance costs, the company is only looking to further increase efficiency. However, the potential for AI to replace human workers is a concern for many, with 62% of Americans believing that AI’s implementation in the workplace will have a “major impact” on workers within the next 20 years. As AI continues to reshape the workforce, it’s essential for businesses to keep in mind the importance of responsible AI development and to prepare for the challenges and opportunities ahead.
