IBM To Stop Hiring For Roles That Can Be Replaced By AI; Nearly 8,000 Workers To Be Replaced By Automation
Goldman Sachs predicted that AI could lead to significant job losses among highly paid, non-menial workers in the US and Europe, estimating that up to 300 million full-time jobs could be exposed to automation. While the forecast was initially met with skepticism and ridicule, recent events suggest that it may not have been too far off the mark.
Dropbox recently announced that it would lay off 16% of its workforce, or 500 employees, as it sought to build out its AI division, requiring a different mix of skill sets, particularly in AI and early-stage product development. Similarly, IBM CEO Arvind Krishna said the company expects to pause hiring for roles it thinks could be replaced with artificial intelligence in the coming years. As a result, hiring in back-office functions, such as human resources, will be suspended or slowed, with Krishna estimating that roughly 30% of such roles could be replaced by AI and automation over a five-year period, leading to about 7,800 job losses.
The reduction in the workforce due to AI is part of an ongoing trend that virtually all companies will follow, with mundane tasks such as providing employment verification letters or moving employees between departments likely to be fully automated, and even evaluating workforce composition and productivity potentially being replaced by AI in the future. As a result, companies are increasingly shifting their focus to AI and hiring more workers in this field.
In Dropbox's case, the layoffs were lateral, and meant to open up space for more AI-linked hires, while in IBM's case, AI itself is making workers redundant. However, both companies share a common goal of using AI to drive productivity and efficiency, with IBM estimating that new steps in this area could drive $2 billion a year in savings by the end of 2024.
While AI is seen as a way to cut overhead costs and drive efficiencies, it is also expected to have a significant impact on employment. While some argue that AI will create new jobs, these will likely require different skill sets and may not compensate for the jobs lost. Moreover, the transition to an AI-staffed corporation may exacerbate existing inequalities, as low-skilled workers are more likely to be replaced by automation, while high-skilled workers will be in greater demand. This could lead to further polarization in society and a widening wealth gap.
Another concern is that the adoption of AI may lead to the creation of a new elite class of tech workers who are able to work with AI and who possess the skills required to develop and operate it. This could result in a significant concentration of wealth and power, further exacerbating existing inequalities. As such, it is important to approach the issue of AI and its impact on employment, taking into account the potential consequences of this rapidly advancing technology.
The adoption of AI is likely to lead to significant job losses among highly paid, non-menial workers in the US and Europe. While the initial predictions by Goldman Sachs were met with skepticism, recent events suggest that they may not have been too far off the mark. Companies such as Dropbox and IBM are increasingly shifting their focus to AI and hiring more workers in this field, while using it to drive productivity and efficiency. However, the adoption of AI is also expected to have a significant impact on employment, exacerbating existing inequalities and creating a new elite class of tech workers. As such, it is important to approach the issue of AI and its impact on employment from a conservative perspective, taking into account the potential consequences of this rapidly advancing technology.
