IBM to pause hiring in plan to replace 7,800 jobs with AI, Bloomberg reports

GSMA's 2023 Mobile World Congress (MWC) in Barcelona
The International Business Machines Corporation (IBM) logo is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. REUTERS/Nacho Doce/File Photo

May 1 (Reuters) - International Business Machines Corp (IBM.N) expects to pause hiring for roles as roughly 7,800 jobs could be replaced by Artificial Intelligence (AI) in the coming years, CEO Arvind Krishna told Bloomberg News on Monday.

Hiring specifically in back-office functions such as human resources will be suspended or slowed, Krishna said, adding that 30% of non-customer-facing roles could be replaced by AI and automations in five years.

His comment comes at a time when AI has caught the imagination of people around the world after the launch of Microsoft Corp-backed (MSFT.O) OpenAI's viral chatbot, ChatGPT, in November last year.

The reduction could include not replacing roles vacated by attrition, the PC-maker told the publication.

IBM did not immediately respond to a Reuters request for comment.

Reporting by Mrinmay Dey in Bengaluru

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