In 2023, IBM laid off 8,000 employees in its HR department, planning to replace routine tasks with an AI system called AskHR. This transformation aimed to streamline operations and enhance productivity, resulting in a notable $3.5 billion productivity boost across over 70 roles. Surprisingly, instead of shrinking, IBM’s total workforce increased as the company rehired in creative and skilled positions, such as software engineering and sales. CEO Arvind Krishna highlighted that savings from automation were reinvested into high-value human roles, showcasing a shift in their employment model. This reflects a broader trend in the tech industry, where AI not only replaces jobs but transforms them. Automation improves efficiency, evidenced by AskHR handling over 11.5 million interactions and significantly boosting customer satisfaction scores. Ultimately, IBM’s experience demonstrates that successful integration of AI requires balancing automation with human expertise, emphasizing that the future of work involves reshaping rather than eliminating jobs.
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IBM Cuts 8,000 Jobs for AI Automation, Only to Rehire Equally as Many Shortly After Due to…
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