In a recent announcement, IBM CEO Arvind Krishna revealed that the company would be implementing a hiring pause and replacing nearly 8,000 jobs with artificial intelligence (AI). Back-office functions, particularly in human resources, will be the first to face these changes. This move highlights the increasing reliance on automation and AI across various sectors and the potential impact on the workforce.
While IBM is not the only tech giant to downsize recently, with layoffs also hitting Meta Platforms Inc., Amazon.com Inc., Twitter Inc., and Microsoft Corp., it's clear that AI is rapidly transforming the workforce. Experts have been sounding the alarm about AI's potential to replace human workers for decades, and this trend has not gone unnoticed by policymakers. The White House released a report in December warning that it's "inevitable" that some workers will be displaced by AI.
Krishna remains bullish about the prospects of AI in the workplace, pointing to the technology's ability to free up thousands of hours of labor-intensive tasks in areas such as finance, accounting, and HR. AI is projected to add a staggering $16 trillion to the global economy by 2030.
However, the prospect of mass automation looms large, as a new report by Goldman Sachs economists reveals that up to 300 million full-time jobs worldwide could be affected by the latest wave of AI technology. The report suggests that 18% of all work around the globe could potentially be replaced by machines, with the most advanced economies being hit the hardest.
This news signals a major shift in the way companies are operating in the digital age, and it’s likely that this is only the beginning. AI is quietly becoming a part of our everyday lives, and startups like AvaWatz are using advanced technology to roll out teams of AI-driven autonomous robot teams. These are used to operate farms, clear airfields, and a host of other operations. While programs like ChatGPT are quickly increasing efficiency in teams, it may also cause less growth in certain jobs.
As AI continues to advance, it is essential for policymakers, business leaders, and individuals to consider the implications and potential impact on the workforce. While AI has the potential to increase productivity and drive economic growth, it also poses significant challenges that need to be addressed. As we move forward into a more automated world, it's crucial to find a balance between technology and human workers to ensure that everyone benefits from these advancements.
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