IBM Temporarily Halts Back-Office Jobs That AI May Replace, Affects 26K Workers
IBM has revealed its decision to pause the transfer of employees to positions that can be replaced by decisions based on artificial intelligence (AI) in the next few years. Corporation General Arvind Krishna highlighted this move, saying that the company is limiting the hiring of back-office workers, including those espoused in the personnel department. The decision will affect around 26,000 jobs that are not customer-facing. According to Krishna, for the next five years, IBM aims to replace 30% of these positions with AI and automation, resulting in the reduction of approximately 7,800 employees.
AI tools have already proven their ability to automate customer service, generate code, and write texts. However, these current moves raise concerns of potential market destruction. Krishna views this strategy as essential in support of the introduction of new technologies and is one of the largest personnel strategies that IBM will undertake.
Krishna predicts that the HR department’s routine tasks, such as the issuance of an employment confirmation letter or employee redistributions, will soon be fully automated. Moreover, AI will likely replace functions like assessing labor performance over the next ten years.
Simultaneously, IBM continues to hire personnel who will develop software and work with clients. The company currently employs 260,000 people.
IBM expects that the new measures set in place to enhance efficiency will help it save $2 billion by the end of 2024, according to Financial Director James Cavano.