IBM CEO Arvind Krishna stated on Monday that the company plans to halt hiring for certain positions, as approximately 7,800 jobs are predicted to be replaced by artificial intelligence (AI) in the near future.
Back-office functions such as human resources will be the most affected, and hiring in these areas will be either suspended or reduced. Krishna also estimated that AI and automation could replace up to 30% of non-customer-facing positions within the next five years.
IBM’s decision to potentially halt hiring for certain positions due to the impending impact of artificial intelligence (AI) comes amidst a widespread interest in the technology. This interest was piqued following the November 2021 debut of ChatGPT, a viral chatbot developed by OpenAI and supported by Microsoft Corp.
In addition to suspending or slowing recruitment in some areas, IBM may also consider not filling vacancies left by departing employees, according to the company.
IBM is yet to respond to a request to comment from Reuters.
If the trend continues, it is highly likely that other major companies will also halt hiring in the wake of AI development, which could affect hundreds of thousands of jobs around the world.
There has been no official word from any company as of yet, but it wouldn’t be surprising to hear similar announcements from some corporations in the near future.