AI to Replace 30% of IBM's Non-Customer-Facing Roles in Next 5 Years, Says CEO

IBM CEO Arvind Krishna has announced that the company will freeze hiring as it expects nearly 7,800 jobs to be replaced by AI in the next five years. This comes as AI-powered technology continues to rapidly advance, raising concerns about potential job displacement across various industries.

Krishna believes that almost one-third of the company's non-customer-facing roles will be replaced by AI and automation over a five-year period, which amounts to around 30% of the 26,000 workers in these roles. However, it's worth noting that back-office employees represent only a small portion of IBM's total workforce of 260,000 employees.

Some experts have expressed concerns that AI could lead to mass layoffs, while others argue that it has the potential to improve productivity and create new job opportunities. IBM has stated that there is no blanket hiring pause in place, but the company is being "very selective" when filling roles that don't directly touch clients or technology.

Meanwhile, the share price of California-based learning company Chegg plummeted by almost 50% after CEO Dan Rosensweig acknowledged on an earnings call that AI-powered technology, such as OpenAI's ChatGPT, was having an impact on its new customer growth rate.

As AI continues to transform the workforce, it's important to consider the potential implications and to ensure that those affected by job displacement are provided with the necessary support and resources.