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IBM’s Plan to Replace Jobs with AI Raises Concerns for Workers and the Wider Economy

by bernt & torsten

IBM, one of the largest tech companies in the world, recently made a bold move by announcing its plan to pause hiring and replace around 7,800 jobs with artificial intelligence (AI) and automation. The announcement has raised concerns about the impact of technology on jobs, as well as the consequences for the broader economy.

The move by IBM is part of the company’s ongoing efforts to improve efficiency and cut costs. Back-office functions such as human resources are expected to be particularly affected, with hiring in these areas suspended or slowed. Over the next five years, IBM plans to replace around 30% of non-customer-facing roles with AI and automation. The company has indicated that the reduction could include not replacing parts vacated by attrition.

The news has understandably caused anxiety among employees and the wider public. The fear is that many people will lose their jobs as AI and automation take over tasks previously performed by humans. While IBM has stated that it will provide training and support for affected employees, there is no guarantee that all workers will be able to transition to new roles.

The rise of AI and automation is not new, but the speed and scale of their adoption is accelerating. Technology is increasingly being used to replace tasks previously performed by humans, particularly those that are repetitive, dangerous or require little creativity. While this can increase efficiency and lower company costs, it also has implications for the broader economy.

One concern is that replacing human workers with AI and automation will decrease the number of available jobs. This could be particularly problematic in areas with high unemployment levels or limited job opportunities. It is also possible that the jobs created by AI and automation will require different skills, meaning that many people will need to be retrained to remain competitive in the job market.

Another concern is the impact on tax revenue. If companies have fewer employees, they will pay less in taxes, potentially reducing funding for essential public services such as healthcare and education. This could have a particularly significant impact on local communities where the company is based, as they may rely on the tax revenue generated by the company.

In addition to the economic implications, there are also ethical considerations. There is a risk that adopting AI and automation could exacerbate existing inequalities, with those already disadvantaged being left behind. There is also a risk that the technology could be used to monitor and control workers, leading to a loss of privacy and autonomy.

In conclusion, the decision by IBM to pause hiring and replace jobs with AI and automation has raised concerns about the impact of technology on jobs, the broader economy and society as a whole. While there are potential benefits to be gained from adopting AI and automation, it is essential that these are balanced against the potential risks and that measures are taken to mitigate any negative consequences. This includes providing support and training for affected workers, investing in education and retraining programs, and ensuring that the benefits of the technology are shared fairly across society.

Source: Reuters