IBM embarked on a transformative journey, introducing artificial intelligence to streamline operations and increase efficiency
This strategic shift led to a substantial downsizing event early in the year, with the termination of nearly 8,000 individuals from its workforce. This move was in line with the industry’s trend towards workforce optimization, seen in other leading technology companies, seeking to minimize overheads by embracing automation, particularly in support roles.
A Surprising Turnaround in Employment
The deployment of AI, including IBM’s AI-based AskHR system, achieved a notable 94% success rate in automating mundane HR responsibilities. This technological leap resulted in a staggering $3.5 billion in operational savings across various divisions. However, the outcome that IBM encountered was not as anticipated. Instead of experiencing a reduction in staff numbers, the company saw its employee count climb, prompting an initiative to recruit an equivalent number of professionals as those initially dismissed.
IBM’s Chief Executive Officer, Arvind Krishna, shared insights with the Wall Street Journal regarding this unexpected phenomenon: “While we’ve done a tremendous amount of work to leverage AI, our total employment has actually increased because it’s allowed us to invest more in other areas.”
Funds and workforce resources liberated through the implementation of automation were reallocated towards areas with significant potential for growth and innovation. Subsequently, IBM began seeking out professionals in fields like software development, sales, and marketing, recognizing the distinctive attributes of human ingenuity and its vital role in these pivotal domains.
The evolving job market sculpted by AI doesn’t solely eclipse existing positions; it simultaneously gives rise to novel roles that demand specific skill sets and often offer better remuneration. This intricate landscape is apparent not only within IBM but also in numerous industries that struggle to incorporate AI seamlessly into their operations.
IBM’s successful automation venture with AskHR, capable of managing over 11.5 million exchanges and elevating user satisfaction, also demonstrates that certain tasks still necessitate the nuanced touch of human workers, emphasizing that AI hasn’t completely replaced human aptitude.
Reflecting industry-wide labor market shifts, a report from the World Economic Forum predicts nearly 92 million job roles may become obsolete by 2030 due to the rise of automation. However, the emergence of new career paths presents a compelling challenge – the need to swiftly adapt to this evolving occupational landscape.
IBM’s narrative underscores the multifaceted impacts of AI on employment and emphasizes the importance of strategic HR planning within organizations at the forefront of technological innovation.
