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IBM Suspends Hiring Due to AI

The media reports that IBM plans to temporarily stop recruiting employees for those positions that artificial intelligence can handle.

IBM Suspends Hiring Due to AI

Source: Pixabay.com

The company’s CEO, Arvind Krishna, announced that the firm will freeze or slow down the recruitment of approximately 26,000 positions in the back office. Also, during a conversation with media representatives, he said that he easily imagines how artificial intelligence and automation processes will replace 30% of the staff over the next five years. In quantitative terms, this means that AI will work instead of 7800 people.

IBM decides to freeze hiring at a time when many are worried about the potential of artificial intelligence to change the situation in the labor market not in favor of people. The technology giant’s plan is one of the most ambitious strategies of activity in the context of adaptation to the era of active integration of AI in all spheres of life.

Arvind Krishna says that artificial intelligence will be engaged in personnel management activities. He also acknowledged that the performance of some duties of the HR department, such as the assessment of the professional qualities of employees, will not be automated in the near future.

This news followed a Goldman Sachs study, which testified that 7% of American workers are engaged in activities that can be automated by 50%. Another 63% of Americans are responsible for duties that artificial intelligence can perform less than half. The remaining 30% of the study participants work physically, in this space, AI capabilities are as limited as possible.

Matthew Tillman, CEO of OpenEnvoy, says that artificial intelligence no longer belongs to the category of additional capabilities, now it is a factor of significant influence on business. He also says that the use of AI as an alternative to humans in the context of work corresponds to the scenario of attracting cheap labor. In his opinion, accounting and non-tax audits may disappear in the near future as areas of employment of people. Tillman says that of the 12 people who control the costs of $ 6 billion, there is a real need for only one person.

As we have reported earlier, Intesa Sanpaolo Signs Strategic Deal With IBM.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.