IBM plans to replace 7,800 ‘non-consumer-facing’ jobs with AI -…

IBM plans to replace 7,800 ‘non-consumer-facing’ jobs with AI -…

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IT service provider International Business Machines Corp. IBM relies on technology to overcome the uncertainties a bad economic environment.

What happened: IBM plans to suspend or slow hiring of back-office roles like human resources that could potentially be replaced by AI and automation, according to CEO Arvind Krishna told Bloomberg.

The company anticipates that up to 7,800 non-facing jobs, or 30% of total non-facing jobs, will be replaced within five years, while some positions may not be replaced after attrition.

Krishna also noted that certain HR functions would continue to be performed by humans over the next decade, while mundane tasks such as issuing work confirmation letters or moving employees between departments could be fully automated.

See also: The best tech stocks right now

Why it matters: Krishna’s comments come amid an economic recession that has impacted the earnings of many companies and has prompted numerous tech companies to scale back investments in unprofitable ventures and lay off employees. The aim is to remain profitable despite declining sales.

For its part, IBM earlier this year announced plans to cut 5,000 jobs. The technology company currently employs a total of 260,000 people.

It’s easier to find talent now than it was a year ago, and IBM would continue to hire people for software development and customer-facing roles, Krishna reportedly said.

The development also highlights the importance of AI technology, which has taken the world by storm following the popularity of AI GPT by OpenAI large language model and ChatGPT, the technology-powered chatbot.

microsoft corp MSFT Earlier this year, the company expanded its partnership with OpenAI by investing $10 billion. This allowed the software giant to integrate GPT with its Bing search engine and cloud services. critics however pointed out the dangers of technology if its development is left unhindered.

IBM closed Monday’s session down 0.25% at $126.09, according to…



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