Tuesday, May 2nd 2023

IBM to Replace 7,800 Jobs Using Automation and AI

With the rise of generative artificial intelligence (AI) and other AI tools, the new models pose a threat to workers around the globe. Today, as reported by Bloomberg News, we find out that International Business Machines, or IBM shortly, is planning to replace thousands of jobs using automation and AI technology. As the report suggests, IBM's Chief Executive Officer Arvind Krishna is expecting to pause the hiring for roles AI could replace in the coming years. The main department that will see a job cut is the non-customer-facing roles like the back office. There are 26,000 people at IBM working in the back office, and CEO noted that "I could easily see 30% of that getting replaced by AI and automation over a five-year period."

This translates to roughly 7,800 jobs impacted by AI over the next five years. The CEO also added that departments such as human resources would see a hiring slowdown or even suspension of hiring further. IBM has 260,000 employees, and the company continues to look for engineering and customer-facing roles.
Source: Bloomberg News
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25 Comments on IBM to Replace 7,800 Jobs Using Automation and AI

#2
P4-630
There you have it, Skynet slowly but surely taking over.....
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#3
Arkz
It begins. We're in the endgame now.
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#4
razaron
In a world where corporations paid tax like us peasants, this would be great. Corp makes more money, pays more tax, we get more UBI.
Unfortunately we don't live in that world.
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#5
64K
I wonder if at some point in the future we will end up like The Expanse TV Series where over half the adult population don't work and the Government takes care of them.
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#6
Xaled
If everybody becomes jobless, nobody would be able to buy their products therefore they would bankrupt too.

One way to slow down or even stop this is to boycott such companies
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#7
cosminmcm
Why in 5 years and why only 30%? We need it now and 100%! These guys are not doing it fast enough.
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#8
Fourstaff
They will end up hiring a bunch of people to manage the AI tools instead.
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#9
R0H1T
I wonder if the board and some other executive positions can be replaced with AI :rolleyes:
64KI wonder if at some point in the future we will end up like The Expanse TV Series where over half the adult population don't work and the Government takes care of them.
A lot more I bet o_O
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#10
TechLurker
I mean, automation took a hold of the farming industry and they're still needing skilled workers for the finer details as well as maintaining their equipment.

If anything, getting rid of some of the desk jobs with AI will just see the jobs shift from general paperwork things to server maintenance. Sure, they'll hire less, but it also means more efficiency and fewer lost paper trails.
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#11
ZoneDymo
64KI wonder if at some point in the future we will end up like The Expanse TV Series where over half the adult population don't work and the Government takes care of them.
That is Star Trek's utopia as well, nobody has to work, but you can if you want and a qualified.
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#12
Eternit
I wonder what he will say when shareholders will figure out CEO and all the directors can be replaced by AI.
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#13
DeathtoGnomes
Beware! Beware! the world ends in 2024!

or is that supposed to Repent?

this will bite IBM in the ass eventually, its still too early in AI development, IMO.
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#14
r9
Welcome the the Future(not so distant).
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#15
windwhirl
Things like this have been happening since forever. The Industrial revolution in the late 1700s/early 1800s being perhaps the oldest of these processes that's widely and extensively documented (though almost assuredly not the oldest one). And it happened again in the late years of the 19th century... and again during the 20th century with the arrival of electronics. They will keep happening until humanity goes extinct or we either hit an unbreakable ceiling of scientific/technological advancement or we collectively decide to not advance further (I don't see this happening ever, but might as well include it as a possibility).
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#16
Operandi
windwhirlThings like this have been happening since forever. The Industrial revolution in the late 1700s/early 1800s being perhaps the oldest of these processes that's widely and extensively documented (though almost assuredly not the oldest one). And it happened again in the late years of the 19th century... and again during the 20th century with the arrival of electronics. They will keep happening until humanity goes extinct or we either hit an unbreakable ceiling of scientific/technological advancement or we collectively decide to not advance further (I don't see this happening ever, but might as well include it as a possibility).
I think the difference with all past technological revolutions is that they either created completely new fields of work and interest or fundamentally changed existing fields to the extent that people interacted with them in completely new novel ways that were not practical in the past but were viable after. I'm sure AI will be the same in a lot of respects as far as creating new fields and allowing people to focus on more creative aspects of existing ones but there is no rule that says thats going to be the case forever going forward.
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#17
vietanh2901
EternitI wonder what he will say when shareholders will figure out CEO and all the directors can be replaced by AI.
This will happen too. Not all CEO and directors are good at running business effectively, so replacing them is not a bad idea :D
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#18
Readlight
Ai will take the most comunative, productive person.
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#19
kiakk
Everybody have power to support it or refuse it. I also do not use automatic cash desk at Supermarket, because I decided I support humanity and not the money masters who whould use only robots and some engineers to live in this planet.
I could give a smile and some nice word to the person who behind the cash machine and she/he does the same. I do not want to delete living creatures from the every day living.
And everybody can do so and choose between robots and living humans.
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#20
truehighroller1
kiakkEverybody have power to support it or refuse it. I also do not use automatic cash desk at Supermarket, because I decided I support humanity and not the money masters who whould use only robots and some engineers to live in this planet.
I could give a smile and some nice word to the person who behind the cash machine and she/he does the same. I do not want to delete living creatures from the every day living.
And everybody can do so and choose between robots and living humans.
Watch the world burn. I think you get it. Let them win " evil money hording pos people that have been hording money and just did the biggest transfer of money known, for hundreds of years now " or not.
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#21
Unregistered
AI should be leveraged to reduce working hours, governments instead of listening to those braindead people calling for the ban of AI, should embrace AI and use it to force companies to reduce working hours and forbid any layoffs.
#22
truehighroller1
Xex360AI should be leveraged to reduce working hours, governments instead of listening to those braindead people calling for the ban of AI, should embrace AI and use it to force companies to reduce working hours and forbid any layoffs.
Agreed but, not gonna happen. China has people living on worksites. Kids making shoes.

Yeah, not going to happen.
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#23
R-T-B
In a perfect world the end game would be an omniscient good AI managing everything for us while humans are issued a universal basic income. But we don't live in a perfect world, so I give that about 1 in a billion chances of happening.
Xex360AI should be leveraged to reduce working hours, governments instead of listening to those braindead people calling for the ban of AI, should embrace AI and use it to force companies to reduce working hours and forbid any layoffs.
Honestly AI is not ideal for what you just described. If you want to save jobs at this point, you might want to spend more time listening to the people you just called "braindead" (many of them were involved in making AI in the firstplace, they aren't braindead).
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#25
oleksandr-g
JoPilot says there are still a lot of back-office jobs active. Maybe one day the jobs will be eliminated but we're definitely not there yet.
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