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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

IBM’s AI adoption leaves thousands of jobs on the line

International Business Machines Corp. (NYSE:IBM) is hitting the brakes on certain new job hires as the US technology multinational aims to replace as many as 7,800 roles with artificial intelligence systems.

Speaking to Bloomberg on Monday, chief executive Arvind Krishna revealed that hiring for back-office functions, such as human resources, will either be suspended or slowed down.

Additionally, the PC maker estimates that 30% of non-customer-facing roles could be automated within five years.

The lightning-fast adoption of Microsoft-based ChatGPT and similar large-language models have caused major anxieties in the labour market, but IBM’s statements represent one of the largest workforce strategies announced by a major corporation yet.

Meanwhile, Samsung this week joined the ranks of JPMorgan Chase & Co (NYSE:JPM)., Bank of America Corp (NYSE:BAC). and Citigroup Inc (NYSE:C) in banning employees from using chatbots such as ChatGPT on security grounds.

On the other hand, Morgan Stanley (NYSE:MS) signed a strategic agreement with ChapGPT developer OpenAI to develop AI-led financial advisory services.

More than 1,000 leaders in the AI industry, including Elon Musk, have called for a pause on AI rollout in order to shore up necessary policy frameworks.

IBM has a storied history with artificial intelligence, having consulted on props for 1968 AI-gone-rogue classic 2001: A Space Odyssey.

The initials of 2001’s murderous computer HAL precede IBM’s initials; the filmmakers contended that this was a mere coincidence.

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