IBM Suspends Hiring for Jobs It Plans to Replace With AI
Key Takeaways
- The IBM CEO has predicted that up to 7,800 jobs at the company could be replacing by AI
- It has suspending hiring for new positions that they believe could be replaced by AI, including HR and other non-customer-facing roles
- That sounds pretty bad, but Goldman Sachs recent report states that overall, AI should lift global GDP significantly, estimating 7% by 2033
- AI is super powerful and here to stay, so it’s important to learn how to leverage it to improve your own life — like through investing
In a twist to news of the depressingly normal layoffs round-ups we’ve become accustomed to, IBM has become the first major company to stop hiring roles in favor of replacing them with AI.
It’s a pretty “yikes” moment for the job market, as fears grow that AI automation will leave many scrambling for new employment. But it’s not as bad as some fear — so let’s get into the details.
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The IBM AI jobs announcement
IBM stated it was slowing or suspending hiring for new positions where AI could do the job instead, including non-customer-facing roles and HR. CEO Arvind Krishna predicted that 30% of these positions would go, totalling roughly 7,800 jobs at IBM.
Krishna didn’t detail how quickly this restructure of its 260,000-strong global workforce would be implemented. IBM has already laid off 3,900 roles since the year began. Big Tech hasn’t fared well in the economic downturn, but this is the first company to be so bold with its approach to its workforce and how AI will eliminate back-end roles in the company.
AI isn’t the end of human jobs
So, is AI about to cost us all of our jobs? Well, yes and no.
A new Goldman Sachs report found AI could boost the global GDP by 7%, or $7 trillion, by 2033. It addressed the jobs issue head-on, noting 60% of employees today are in roles that didn’t exist back in the 1940s and that 85% of employment growth in the last 80 years comes from tech-driven new jobs. So AI will eliminate roles, but it’ll also create a lot of new ones at the same time.
There’s also some way to go with AI safety and regulations, which could further slow down AI progress and stop the panic. And we might be biased here, but we think AI is a pretty great tool for building other income streams, like investing.
The bottom line
Chances are the jobs market will adapt to have human roles complemented by AI and new jobs will be created, too. We asked ChatGPT-4 whether it thought AI would replace human jobs, and here’s its response: “Yes, AI will replace some human jobs, but it will also create new opportunities, demanding adaptability and upskilling.”
You heard it here first.
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