IBM CEO Arvind Krishna’s recent announcement of a hiring pause was just the tip of the iceberg. The company is now set to replace nearly 8,000 positions with AI across the next few years, primarily focusing on back-office functions, and starting with the HR department.
This move accentuates the growing reliance on automation and AI in various sectors and raises questions about its potential impact for both companies and individuals.
Why it matters: The impact of AI on jobs has been a longstanding concern, prompting discussions among policymakers and experts. While AI promises enhanced productivity and economic growth, the most advanced economies could experience the greatest impact. Furthermore, it is crucial for industries and governments to adapt and prepare for this shift in labor dynamics.
Although the automation wave is set to unlock significant efficiency gains and contribute an estimated $16 trillion to the global economy by 2030, it raises critical questions about the future of employment and the potential challenges it poses to the workforce.
- Although the automation wave is set to unlock significant efficiency gains and contribute an estimated $16 trillion to the global economy by 2030, it raises critical questions about the future of employment and the potential challenges it poses to the workforce.
- A recent report by Goldman Sachs economists fuels this debate, revealing that the latest AI technology wave could affect up to 300 million full-time jobs globally. This equates to 18% of global work.
- This move by IBM aligns with a larger movement within the tech sector. Companies like Meta Platforms, Amazon, X, and Microsoft are also implementing layoffs to streamline operations and cut costs.
Go Deeper —> IBM Plans To Replace Nearly 8,000 Jobs With AI – Yahoo! Finance
