An international technology corporation called IBM has disclosed its intention to stop hiring and swap 7,800 back office staff for AI. The company’s attempts to reduce expenses and streamline operations include this action.
Pause in Hiring
The business will hold hiring in some areas as it concentrates on “re-skilling and rebalancing” its staff, according to a report by News18 citing IBM’s Chief Financial Officer, Jim Kavanaugh, during an earnings call. It is anticipated that this hiatus will continue for a while.
The action is being taken as IBM struggles to maintain its position as a market leader and as the COVID-19 pandemic’s financial effects become more apparent.
Replacing Workers with AI
The company’s goal is not new, as evidenced by IBM’s aim to replace 7,800 back office personnel with AI. Actually, IBM has been making investments in automation and AI technology for a number of years with the intention of boosting productivity and lowering costs.
Several AI-based solutions, including IBM’s Watson AI platform, which is used for customer service, procurement, and supply chain management, have already been integrated into IBM’s back office operations, claims a Tech Monitor report.
Implications for Workers
Concerns regarding the effects on employment have been highlighted by the effort to replace workers with AI. Although IBM has promised to offer re-skilling opportunities to affected employees, it is unclear how successful these efforts will be in assisting employees in transitioning to new roles.
In addition, the employment of AI in back office tasks raises concerns about the possibility of job loss in other sectors that depend largely on human labor.
Even while this decision could be advantageous to the business in the short run, it raises questions about how it will affect employment and the possibility of job displacement in other sectors.