A IBM, one of the world’s largest technology companies, has announced that it plans to suspend the hiring of about 7,800 positions, which may eventually be replaced by artificial intelligence (AI) systems. According to Arvind Krishna, the company’s CEO, the hiring suspension or reduction will apply to back-office functions such as HR and will affect approximately 26,000 people who are not in contact with the client. This will include not replacing current posts that become vacant as a result of staff turnover.

Krishna envisions that some tasks, such as providing employment confirmation letters or moving employees between departments, will be fully automated. He also mentioned that some of the functions of personnel management, such as assessing the composition and performance of the workforce, should not be replaced in the next ten years. According to the CEO of IBM, about 30% of these positions could be replaced by artificial intelligence and automation within five years..

The news comes amid growing concern about replacing human jobs with artificial intelligence and automation systems. In March of this year, Goldman Sachs published a report estimating that generative AI could “open” 300 million jobs for automation, meaning those roles could be reduced or replaced by AI systems.

The cut will not affect developers.

Despite an expected reduction in the workforce in certain positions, IBM will continue to hire employees for software development and customer service. Krishna told Bloomberg that finding talent is easier than it was a year ago, and the company hired about 7,000 new employees in the first quarter. IBM currently employs about 260,000 people.

IBM’s statement is one of the strongest statements from a major technology company regarding the potential impact of AI on the workforce. While replacing workers with artificial intelligence and automation systems can be seen as a way to improve efficiency and reduce costs, it can also have negative consequences for the workers to be replaced and the economy as a whole.

However, it is important to note that the replacement of jobs by technology is not a new phenomenon. History shows that automation and technology have impacted the labor market over time. The question now is how companies, governments and workers can adapt to the changes that are taking place and ensure that automation does not lead to more unemployment and social inequality.

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Source: Bloomberg.

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