IBM Plans to Replace Thousands of Jobs with AI Systems:
Artificial intelligence (AI) is rapidly becoming a popular choice for companies looking to increase efficiency and streamline their operations. IBM is the latest company to make a move in this direction, announcing plans to replace roughly 7,800 jobs with AI systems in the coming years.
HIGHLIGHT:
- IBM Ceo Arvind Krishna plans to replace 7,800 jobs with AI in the coming years
- Hiring in back-office functions like human resources will be suspended or slowed
- Other Tech giants like Microsoft, Google, Amazon, and Meta are also investing in AI and chatbot technology
- While concerns about job displacement exist, experts predict AI will ultimately lead to new opportunities and greater efficiency.
Company CEO Says Back-Office Functions Will Be Affected:
IBM CEO Arvind Krishna told Bloomberg News that the company expects to pause hiring for roles in back-office functions, such as human resources. He added that around 30% of non-customer-facing roles could be replaced by AI and automation within five years. The reduction could include not replacing roles vacated by attrition, according to the CEO.
Krishna believes that IBM's plan will ultimately create new opportunities for employees, with the company providing training and resources to help workers transition to new roles. This move is part of a larger trend in the tech industry, as companies look to automate processes and cut costs.
While AI has caught the imagination of people around the world, with the launch of Microsoft-backed OpenAI's viral chatbot ChatGPT last year, concerns have been raised about the impact that AI will have on jobs. However, Krishna has argued that IBM's plan will ultimately create new opportunities for employees, with the company providing training and resources to help workers transition to new roles.
IBM's move comes as other tech giants, including Microsoft, Meta, Alphabet, and Amazon, have announced plans to cut jobs and invest in AI. Investors in US tech giants were said to be scrutinizing whether cost cuts and layoffs would boost profits, while companies emphasized how AI would be their next growth driver.
As companies look to integrate AI into their operations, competition in the sector is heating up. Microsoft has integrated OpenAI's ChatGPT technology into its search engine Bing, while Google has started the public release of its chatbot Bard. Amazon's cloud division AWS has released a suite of technologies aimed at helping companies develop their own chatbots backed by AI, and Meta has announced an AI model that can pick out individual objects from within an image.
Overall, the trend towards automation and AI in the tech industry is likely to continue, with many experts predicting that it will ultimately lead to new opportunities and greater efficiency in the long run. However, it remains to be seen how the shift towards AI will impact jobs and the broader economy.
In conclusion, IBM's plan to replace thousands of jobs with AI systems is a significant development in the tech industry's move towards automation and AI. While it may result in some job losses in the short term, the move is part of a broader trend that is likely to create new opportunities and greater efficiency in the long run. Companies will need to provide training and resources to help workers transition to new roles and acquire the skills they need to succeed in the evolving tech landscape. As competition in the sector heats up, the impact of AI on jobs and the broader economy will be closely watched by industry experts and investors alike.
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