- They have suspended hiring for new jobs
- And plan to implement AI replacements within 5 years
- Robots can perform back-office tasks
IBM CEO Arvind Krishna announced a halt in hiring for a number of jobs. In the next few years, they plan to fill them with artificial intelligence.
In particular, robots will be successful in “back office” tasks if they do not involve direct communication with customers.
According to Krishna, AI solutions can perform some HR (human resources) tasks:
“AI can automate more and more everyday tasks. For example, preparing letters or moving employees between departments.
But there remain many HR functions in the back office that AI won’t be able to perform for decades. For example, recruiting or evaluating their effectiveness.”
Arvind Krishna believes that in 5 years, artificial intelligence will replace about 30% of non-customer-facing positions.
About 26,000 people work in IBM’s back office now. That means 7,800 people will be laid off.
Krishna took over as CEO in 2020. Now he’s actively streamlining his business, such as selling structures like Watson Health that aren’t very profitable and cutting employees.
The head of the company expects this strategy to save the brand up to $2 billion annually by the end of 2024.
In the meantime, Binance has launched its chatbot for Binance Academy.