IBM CEO Arvind Krishna says the company may pause hiring for positions that could potentially be performed by artificial intelligence (AI) within the next few years, specifically back-office functions, such as certain HR roles. Krishna forecasts that AI will be able to perform up to 30% of back-office functions in the next five years
- Krishna expects that AI will allow for the automation of certain tasks, including generating employment verification letters and staff transfers between departments.
- However, HR functions such as evaluating workforces are unlikely to be automated within the next 10 years, according to Krishna.
- The CEO anticipates that recruitment for back-office roles, including HR, will be halted or reduced. These positions do not involve interacting with customers and currently employ approximately 26,000 individuals.
- In January, IBM announced layoffs affecting 3,900 positions, or 1.5% of its global workforce, after it missed its yearly cash target.
- The IBM announcement highlights how AI and automation, which are advancing rapidly, could lead to job losses.
- According to a recent report by Goldman Sachs analysts, generative AI technologies could potentially automate 300 million full-time jobs, with two-thirds of jobs in the U.S. and Europe likely to be affected by AI automation in some form.
