IBM Freezes Hiring Amid CEO’s Prediction of AI Replacing 7,800 Jobs

IBM CEO Arvind Krishna told Bloomberg News that he will halt hiring at his business because he believes that AI can be used to operate the business without any assistance.

In a recent interview with Bloomberg News, IBM CEO declared that the company is replacing 7,800 jobs with the deployment of Artificial Intelligence (AI).  According to him in the coming years, he can easily see that around “30 percent” of his employees can be replaced with AI.

Krishna further noted in the interview that other routine chores like sending letters of employment verification or transferring personnel between departments would be handled by AI, entirely automating the process for the business.

In the interview published on Tuesday, Krishna also stated, “These non-customer-facing roles amount to roughly 26,000 workers. I could easily see 30 percent of that getting replaced by AI and automation over a five-year period.”

However, the decision to use AI has not been without controversy; many people do not agree with this new approach. As per critics, AI shouldn’t be considered a substitute for human employment, but instead, as a tool to aid them in performing their tasks more successfully. They contend that businesses like IBM must make certain that workers are not left adrift when the company transitions to technology.

Will AI replace humans in the workforce?

There is no doubt that artificial intelligence (AI) is going to keep having an impact on the employment market in the years to come. Although some automatable jobs may be replaced by AI, it will additionally open up new career paths in disciplines like data science, machine learning, and AI development.

What society chooses to control and utilize AI will have a significant impact on how much work AI will eventually displace. In the end, it’s critical to recognize that AI is a tool that can supplement instead of replace the skills of humans.

Following recent reports of IBM freezing hiring amid predictions of AI and automation taking over non-customer-facing roles, an IBM spokesperson has clarified that there is no blanket hiring pause in place. Instead, the firm is more selective when filling jobs that do not directly involve clients or technology. 

In a statement to AFP, the spokesperson said that IBM is always reviewing its workforce needs and that this approach is not new.

The hiring freeze announced by IBM is a plan to reduce expenses that will probably have a big impact on both the business and its staff. Even though AI may be a significant part of IBM’s future, there are still worries about how it will affect people who work there. Whether this choice will ultimately affect the business and its personnel can only be determined with time.

The Effects on Upcoming Hiring

The choice to freeze recruiting has effects on the job market as an entire. Since applicants are compelled to seek employment somewhere else, it might result in greater rivalry for vacant positions in other companies. The freeze could also act as a warning to other businesses that the labor market is shifting in favor of AI and cutting-edge technologies, prompting them to prioritize the same investments in their businesses.