IBM's decision to replace 8,000 jobs with AI is a major corporate maneuver, coming on the heels of a reduction of 3,900 jobs earlier this year1. This marks an intensified focus on automation within the company.
HR, Finance, and Accounting: The Transformation Begins
The human resources department at IBM is the initial focus, with finance and accounting to follow. Automation in these sectors promises efficiency and precision, signifying a new era in these traditionally human-driven fields.
IBM's move reflects a broader trend in the tech industry. Giants like Amazon, Twitter, and Microsoft are also reshaping their workforces, pointing to a significant industry pivot toward automation.
The Economic Impact: A $4.4 Trillion Prospect and 300 million jobs left vulnerable
AI's potential economic contribution is astounding. According to a recent study from Mckinsey, It has the potential to add up to $4.4 Trillion to the economy annually2. While the injection of new economic activity is positive, where those profits will ultimately land deserves thoughtful consideration. Goldman Sachs projects that 300 million full-time jobs could be affected by Generative AI3.
Investments and the Future of AI
Venture capital's heavy investment in AI underscores the anticipated growth in this field. Generative AI platforms like ChatGPT, Midjourney, and Claude are part of a technological wave that redefines various sectors and industries.
Preparing for the Future
IBM's strategy to replace jobs with AI is not an isolated event; it reflects a global transformation. The movement toward mass automation presents an opportunity for companies to restructure and redefine what they need from their workforce. This opportunity comes with a massive economic incentive. However, the changes will have profound consequences on its workers. It will be up to individuals to continuously adapt to new tools and skills to remain relevant and employable. New jobs will in entirely new industries will be created. The question is, will there be enough opportunity to go around?