Revelations 13:14 “…by the signs that it is allowed to work in the presence of the beast it deceives those who dwell on earth…”
Important Takeaways:
- IBM To Stop Hiring For Roles That Can Be Replaced By AI; Nearly 8,000 Workers To Be Replaced By Automation
- Consider that just last week, Dropbox said it would lay off 16% of the company, some 500 employees as the company sought to build out its AI division.
- But while Dropbox’s layoffs were lateral, and meant to open up space for more AI linked hires, in the case of IBM, it is AI itself that is making workers redundant.
- As Bloomberg reports, IBM CEO Arvind Krishna said the company expects to pause hiring for roles it thinks could be replaced with artificial intelligence in the coming years. As a result, hiring in back-office functions — such as human resources — will be suspended or slowed, Krishna said in an interview. These non-customer-facing roles amount to roughly 26,000 workers, Krishna said. “I could easily see 30% of that getting replaced by AI and automation over a five-year period.” That would mean roughly 7,800 jobs lost.
- Enter AI: new “productivity and efficiency” steps – read replacing workers with algos – are expected to drive $2 billion a year in savings by the end of 2024, Chief Financial Officer James Kavanaugh said on the day of earnings.
- Helping the company’s imminent transition to an AI-staffed corporation will be the coming recession. Until late 2022, Krishna said he believed the US could avoid a recession. Now, he sees the potential for a “shallow and short” recession toward the end of this year, although it remains unclear just how one can determine that a recession will be “shallow and short”.
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