Human jobs at risk? IBM CEO expects to replace 7,800 jobs with AI in next 5 years

IBM (International Business Machines Corporation), nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York and present in over 175 countries.  IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology.

On Monday (1st May 2023), International Business Machines Corp. (IBM) CEO Arvind Krishna told Bloomberg that the company intends to pause or slow hiring on roles it believes could be entirely outsourced to AI. Krishna estimated that the adoption of AI could replace nearly 30% of its workforce, amounting to 7,800 jobs.

This is not the first time that AI has been used to replace human jobs. In fact, many jobs are at risk of being replaced by AI in the future.

According to a report by McKinsey Global Institute, up to 800 million jobs could be lost worldwide by 2030 due to automation. The report also states that up to 375 million workers may need to switch occupational categories and learn new skills.

The jobs most at risk of being replaced by AI are those that involve routine tasks such as data entry, bookkeeping, and assembly line work. However, AI is also being used in more complex tasks such as medical diagnosis and legal research.

It is important for workers to stay informed about the impact of AI on their jobs and be prepared for changes in the job market. This includes learning new skills and being open to new opportunities.

Back in January, Alphabet (parent company of Google) announced 12,000 job cuts to focus on AI development — a similar move by Microsoft, which also cut thousands of jobs and increased AI spending.

But AI isn't just affecting tech giants competing in a new technological frontier or business magnates looking to automate tasks — several businesses have already noted losses due to the widespread use of machine learning tools like ChatGPT.

Homework help platform Chegg, which focuses on essay writing and other related things, said in an earnings call on Monday that ChatGPT has vastly impacted its business. As of Tuesday morning, the company's stock is down over 60% year-to-date.

Chegg is working with OpenAI to develop its own AI technology, CheggMate. The tool is positioned to guide student learning and be interactive, so students can ask new questions or prompt the tool to explain things in a different format.

The jobs most at risk of being replaced by AI are those that involve routine tasks such as data entry, bookkeeping, and assembly line work. However, AI is also being used in more complex tasks such as medical diagnosis and legal research.

Some examples of jobs that could be affected by AI include:

1. Data entry and processing jobs: AI technology can quickly process large amounts of data and identify patterns, which could make data entry and processing jobs obsolete.
2. Customer service and support jobs: AI chat bots and virtual assistants can handle basic customer inquiries and support tasks, potentially replacing human customer service representatives.
3. Cashier jobs: Self-checkout machines are becoming more common in retail stores, which could lead to fewer cashier jobs.
4. Driver jobs: Self-driving cars are being developed by companies such as Tesla and Google, which could lead to fewer driver jobs.
5. Legal roles: AI is being used for legal research and document review.

However there are some new opportunities that will come with AI. Here are some skills that are likely to be in demand in the future:

1. Cognitive flexibility: The ability to adapt to change and conceptualize complex multiple ideas all at once.
2. Digital literacy and computational thinking: The ability to use digital tools and understand how they work.
3. Judgment and decision-making: The ability to make sound decisions based on data.
4. Emotional and social intelligence: The ability to understand and manage emotions and work well with others.
5. Creative and innovative mindset: The ability to think outside the box and come up with new ideas.

AI is transforming the IT industry, and while it offers many benefits, it is also leading to job cuts. As AI technology continues to advance, it is important for companies and workers to adapt to these changes and find ways to mitigate the impact. This includes investing in retraining, embracing new technologies, and supporting displaced workers.In addition, it is important to remember that AI is not a replacement for humans. While AI can perform many routine tasks, it still lacks the creativity, empathy, and critical thinking skills that humans possess. This means that there will always be a need for human workers in the IT industry, particularly in roles that require these skills.Ultimately, the impact of AI on job cuts in IT will depend on how companies and workers adapt to these changes. While some jobs may be lost, new jobs will also be created as a result of AI. It is up to us to embrace these changes, acquire new skills, and find ways to thrive in the new era of AI.

#AI #JOBCUT #IBM #GOOGLE

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