IBM to freeze hiring and cut 7,800 jobs with AI

International Business Machines Corp (IBM) plans on enforcing a hiring freeze for certain positions, as the company expects that an estimated 7,800 jobs within the IT major could be replaced by artificial intelligence (AI).The company's CEO Arvind Krishna revealed these plans in an interview with Bloomberg News on Monday. The CEO noted that IBM's hiring pause would mainly affect back-office functions such as human resources, administration, etc. He noted that around 30 per cent of non-customer facing roles could be replaced by AI and automation within the next five years.

IBM's workforce reduction strategy may include not filling roles left vacant due to attrition, the CEO explained. This announcement comes amid a surge of interest in AI following the November launch of OpenAI's ChatGPT, a viral chatbot backed by Microsoft. The AI-driven chatbot has garnered significant attention worldwide, showcasing the potential for AI to transform various industries, including software development.AI has been making inroads in software development, automating tasks, and significantly improving the efficiency of the development process, industry insiders highlight. As AI continues to advance, it is anticipated that an increasing number of software development tasks will be performed by AI systems, further changing the landscape of the industry. While the impact of AI on the job market remains a topic of debate, the adoption of AI in various industries has the potential to create new job opportunities and reshape the workforce. Experts believe that companies will need to adapt and invest in training and reskilling initiatives to ensure that their employees are prepared for the changes that AI-driven technologies bring to the workplace.