IBM Implements AI Replacement Plan, Pauses Hiring for 7,800 Jobs

IBM Corporation is expecting to halt hiring for certain positions, as roughly 7,800 jobs could be replaced by Artificial Intelligence (AI) in the coming years, according to CEO Arvind Krishna. In an interview with Bloomberg News, Krishna mentioned that recruitment specifically for back-office functions, such as human resources, will be put on hold or slowed down. He added that 30% of non-customer-facing roles could be substituted by AI and automations within the next five years. This decision has been made to ensure that the company remains competitive and adapts to the ongoing digital transformation.

Krishna’s comments come at a time when AI has become a subject of interest to people worldwide following the successful launch of Microsoft Corp-backed OpenAI’s viral chatbot, ChatGPT, in November last year. This AI technology has the potential to revolutionize the way businesses operate, especially those in the tech industry.

Furthermore, the reduction in hiring could also involve not replacing roles vacated by attrition. This approach is being taken to minimize the impact on current employees, and the company is committed to supporting its staff as it transitions to a more AI-driven business model.

Overall, IBM is taking proactive steps to embrace the ongoing technological revolution by incorporating AI and automation into its operations. This decision will allow the company to remain competitive in the ever-evolving business landscape and better serve its customers in the years to come.


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