IBM Will Replace 7,800 Jobs With AI And Delay Employee Recruitment In Back-Office

JAKARTA - The International Business Machines Corp (IBM) is expected to stop recruiting employees because around 7,800 jobs can be replaced by artificial intelligence (AI) in the next few years. This was revealed by IBM CEO Arvind Krishna to Bloomberg News on Monday, May 1.

"Recruitment particularly in back-office functions such as human resources will be suspended or slowed down," Krishna said. He added that 30% of the unlinked roles with customers could be replaced by AI and automation in five years.

His comments came at a time when AI had pulled the imagination of people around the world after the launch of a ChatGPT viral chatbot from OpenAI backed by Microsoft Corp in November last year.

The reduction may include not replacing the role left by the reduction of employees, the company told the publication.

Advances in AI technology have allowed machines to process and analyze data at a higher speed and accuracy than humans. In some cases, AI can replace human work that requires routine or repeated tasks efficiently and faster than humans.

In addition, the use of AI can also reduce the company's operating costs, as software and machinery tend to be cheaper in the long term than salaries and allowances that must be paid to human employees.

However, while AI can replace some human work, this technology does not completely replace more complex human capabilities, such as creativity, abstract reasoning, and interpersonal skills. Therefore, in the future, human workers may still be needed for tasks that require more complex human capabilities.