7,800 JOBS AT IBM COULD BE REPLACED BY AI WITHIN YEARS, CEO SUGGESTS

Last updated: June 19, 2025, 22:14 | Written by: Olaf Carlson-Wee

The rise of artificial intelligence (AI) is no longer a futuristic fantasy; it's a present-day reality reshaping the job market as we know it.In a recent revelation that has sent ripples throughout the tech world, IBM CEO Arvind Krishna announced that approximately 7,800 jobs at the tech giant could be replaced by AI and automation within the next five years.This bold prediction translates to roughly 30% of IBM's non-customer-facing roles potentially being taken over by intelligent machines.The news has understandably sparked concerns about the future of work and the increasing role of AI in our professional lives.

This isn't just about IBM. Approximately 7,800 jobs at IBM may be completely automated by AI in a few years, according to the firm s chief executive, who expects human resources and accounting to get the axe first.Krishna's statement highlights a broader trend impacting numerous industries as companies explore ways to leverage AI to increase efficiency and reduce costs.It’s a clear signal that businesses are actively seeking to integrate AI into their operations, leading to significant changes in workforce composition. International Business Machines Corp. (IBM) is expecting to put a pause on hiring for back-office roles that could be potentially automated by artificial intelligence (AI) instead.IBM CEO ArvindWhile some view this as a threat to job security, others see it as an opportunity for employees to adapt, upskill, and focus on more strategic and creative tasks that AI cannot replicate.So, what does this mean for IBM employees, the broader tech industry, and the future of work itself? 7,800 jobs at IBM could be replaced by AI within years, CEO suggestsIBM CEO Arvind Krishna says that roughly 30% of their non-customer-facing positions couldLet's delve into the details.

IBM's AI Transformation: Focusing on Back-Office Roles

IBM's strategy to incorporate AI is focused primarily on automating **back-office functions**, meaning roles that aren't directly interacting with customers. IBM will slow or suspend hiring for back-office roles that AI could replace. IBM's CEO told Bloomberg 7,800 jobs, roughly 30% of back-end roles, would be replaced over 5 years. Roles in humanCEO Arvind Krishna specifically mentioned that these automatable roles include those in **human resources** and **accounting**.This strategic shift is based on the premise that AI can handle routine, repetitive tasks with greater efficiency and accuracy, freeing up human employees to focus on more complex and strategic initiatives.

This isn't necessarily about layoffs, at least not immediately.According to Krishna, IBM intends to slow or even suspend hiring for roles that AI could potentially replace. IBM to Pause Hiring for Jobs That AI Could Do Roughly 7,800 IBM jobs could be replaced by AI, automation CEO Krishna says IBM to pause hiring for replaceable rolesThis allows the company to organically adjust its workforce structure over time, minimizing the disruption to existing employees while still achieving its goal of greater efficiency through AI adoption.This phased approach can potentially mitigate employee anxiety and allows IBM to strategically manage its workforce transition.

Specific Roles Potentially Affected

While IBM hasn't released a comprehensive list of all roles at risk, the focus on human resources and accounting provides a clear indication of the types of tasks that are being targeted for automation.These likely include:

Data entry and processing
Payroll management
Benefits administration
Invoice processing
Basic customer service inquiries
Report generation

It's important to note that not all tasks within these departments will be completely automated. IBM CEO Arvind Krishna says he could see 30% of back-office functions replaced by AI over 5 years. Benj EdwardsAI is more likely to handle the more mundane and repetitive aspects of these jobs, while human employees will still be needed for tasks requiring critical thinking, problem-solving, and emotional intelligence. IBM Could Replace 7,800 Jobs With Artificial Intelligence, CEO Says IBM Could Replace 7,800 Jobs With Artificial Intelligence, CEO Says. IBM CEO Arvind Krishna said the company will pause hiring soon, and he expects up to 30% of non-customer-facing roles will be replaced by AI in the next five years.The key is to identify which tasks can be effectively handled by AI and which require human expertise.

The Impact on IBM Employees and the Wider Tech Industry

The potential replacement of 7,800 jobs at IBM raises significant concerns about the future of work for the company's employees and sets a precedent for the broader tech industry. International Business Machines Corp 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 toldWhile IBM aims to manage this transition through attrition and reduced hiring, the reality is that some employees may face displacement.

The impact on employees will depend on several factors, including their current roles, skill sets, and willingness to adapt to new technologies. IBM employs 282,000 employees globally according to LinkedIn and according to Bloomberg has around 26,000 non-customer-facing staff meaning around 7,800 jobs could be handed over to AI. I could easily see 30% of that getting replaced by AI and automation over a five-year period.Those who are proficient in skills that complement AI, such as data analysis, AI development, and process optimization, will likely be in high demand.On the other hand, those who primarily perform routine tasks may need to acquire new skills to remain relevant in the evolving job market.

The broader tech industry is watching IBM's move closely. 7,800 jobs likely to be taken over by AI. As per the Bloomberg interview, the IBM boss noted he could easily see 30% of these positions substituted by AI over five years. IBM CEO Arvind Krishna. IBM hires 282,000 employees globally, according to LinkedIn, and Bloomberg reports it has around 26,000 non-customer-facing staff meaning roughlyIf IBM successfully implements its AI strategy and achieves significant cost savings and efficiency gains, other companies are likely to follow suit. IBM Says 7,800 Jobs (or Nearly 30% of Its Workforce) Could Be Replaced By AI IBM CEO Arvind Krishna told Bloomberg workers in non-customer-facing roles will be affected. Other companies have alsoThis could lead to a wave of automation across various industries, potentially impacting millions of jobs globally.It also underscores the importance of continuous learning and adaptation in a rapidly changing technological landscape.

Understanding IBM's Numbers: A Closer Look

To fully grasp the significance of IBM's announcement, it's crucial to understand the underlying numbers.IBM employs approximately 282,000 people globally, according to LinkedIn.Of those, Bloomberg estimates that around 26,000 are in non-customer-facing roles.IBM CEO Arvind Krishna estimates that roughly 30% of these 26,000 positions, which equates to approximately 7,800 jobs, could be replaced by AI and automation over the next five years.Let's break that down:

Total IBM employees: 282,000 (approximately)
Non-customer-facing roles: 26,000 (approximately)
Potential jobs replaced by AI: 7,800 (approximately, 30% of non-customer-facing roles)

These numbers highlight the scale of the potential impact.While 7,800 jobs represent a relatively small percentage of IBM's total workforce, it's a significant number in terms of the individuals and families affected.Furthermore, the fact that IBM, a major tech leader, is making such a substantial move signals a broader trend that is likely to accelerate in the coming years.

The Benefits and Drawbacks of AI Automation

The increasing use of AI in the workplace comes with both potential benefits and drawbacks.Understanding these is crucial for making informed decisions about how to best leverage AI while mitigating its potential negative consequences.

Potential Benefits

Increased efficiency and productivity: AI can automate repetitive tasks, freeing up human employees to focus on more complex and strategic work.
Reduced costs: AI can perform tasks more quickly and accurately than humans, leading to significant cost savings for businesses.
Improved accuracy and reduced errors: AI systems are less prone to errors than humans, particularly when performing repetitive tasks.
Enhanced decision-making: AI can analyze vast amounts of data to identify patterns and insights that humans may miss, leading to better informed decisions.
24/7 availability: AI systems can operate continuously without the need for breaks or rest, providing round-the-clock support.

Potential Drawbacks

Job displacement: AI automation can lead to job losses, particularly for those in routine and repetitive roles.
Lack of human interaction: Over-reliance on AI can lead to a lack of human connection and empathy in customer service and other interactions.
Bias and discrimination: AI systems can perpetuate existing biases in data, leading to discriminatory outcomes.
Security risks: AI systems can be vulnerable to cyberattacks and data breaches.
Ethical concerns: The use of AI raises ethical questions about privacy, accountability, and control.

It's important to weigh these benefits and drawbacks carefully when considering the implementation of AI in the workplace.A responsible approach involves focusing on tasks that are well-suited for AI while ensuring that human employees are equipped with the skills and training they need to adapt to the changing job market.

Preparing for the AI-Driven Future: Skills and Strategies

The IBM announcement serves as a wake-up call for employees across all industries.To thrive in the AI-driven future, it's crucial to develop skills and strategies that complement AI and ensure your continued relevance in the workforce.

Essential Skills for the AI Era

Critical thinking and problem-solving: AI can automate tasks, but it cannot replace human judgment and critical thinking.The ability to analyze complex problems and develop creative solutions will be highly valued.
Creativity and innovation: AI can generate ideas, but it lacks the originality and imagination of human creativity.The ability to think outside the box and develop innovative solutions will be essential.
Emotional intelligence: AI can process data, but it cannot understand human emotions or build meaningful relationships.The ability to empathize, communicate effectively, and collaborate with others will be crucial.
Technical skills: While you don't need to become an AI expert, it's important to have a basic understanding of AI and related technologies.This includes data analysis, machine learning, and cloud computing.
Adaptability and lifelong learning: The pace of technological change is accelerating, so it's essential to be adaptable and committed to lifelong learning.This includes staying up-to-date on the latest trends and acquiring new skills as needed.

Strategies for Staying Relevant

Identify skills gaps: Assess your current skills and identify areas where you need to improve.
Pursue training and education: Enroll in online courses, workshops, or degree programs to acquire new skills.
Seek out opportunities to work with AI: Look for projects or assignments that involve working with AI technologies.
Network with AI experts: Connect with professionals in the AI field to learn from their experience and gain insights.
Embrace change: Be open to new ideas and technologies, and be willing to adapt to the changing job market.

Addressing Common Concerns About AI and Job Displacement

The prospect of AI replacing human jobs raises legitimate concerns.It's important to address these concerns and provide realistic solutions to mitigate the potential negative impacts.

Will AI Take All Our Jobs?

While AI will undoubtedly automate many tasks, it's unlikely to completely replace all human jobs.AI is better suited for tasks that are routine, repetitive, and data-driven.Humans excel at tasks that require creativity, critical thinking, emotional intelligence, and complex problem-solving.The future of work is likely to involve a collaboration between humans and AI, where each complements the strengths of the other.

What Happens to Displaced Workers?

The displacement of workers due to AI automation is a serious concern.It's important for businesses and governments to invest in retraining programs and support services to help displaced workers acquire new skills and find new employment opportunities.This includes providing access to affordable education, job placement assistance, and financial support.

How Can We Ensure AI is Used Ethically?

The ethical implications of AI are a growing concern.It's important to develop ethical guidelines and regulations to ensure that AI is used responsibly and does not perpetuate bias or discrimination.This includes promoting transparency in AI algorithms, ensuring accountability for AI decisions, and protecting privacy and data security.

Examples of AI Already Impacting Industries

AI is already making significant inroads into various industries, transforming the way businesses operate and impacting the job market.Here are a few examples:

Manufacturing: AI-powered robots are used to automate tasks such as welding, assembly, and quality control.
Healthcare: AI is used to diagnose diseases, develop new treatments, and personalize patient care.
Finance: AI is used to detect fraud, manage risk, and provide personalized financial advice.
Transportation: Self-driving cars and trucks are being developed using AI technology.
Customer service: AI-powered chatbots are used to provide customer support and answer common questions.

These are just a few examples of the many ways that AI is already transforming industries.As AI technology continues to advance, its impact will only become more profound.

Conclusion: Embracing the Future of Work with AI

The announcement that **7,800 jobs at IBM could be replaced by AI** within the next few years is a stark reminder of the rapid advancements in artificial intelligence and its potential impact on the workforce.While the prospect of job displacement can be unsettling, it's essential to approach this transformation with a proactive and optimistic mindset.By understanding the potential benefits and drawbacks of AI, developing essential skills, and embracing lifelong learning, individuals can position themselves for success in the AI-driven future.

IBM's decision to pause hiring for replaceable roles is a strategic move that reflects a broader trend in the tech industry.As AI continues to evolve, companies will increasingly seek to leverage its capabilities to increase efficiency and reduce costs.This means that employees need to be prepared to adapt to new roles, acquire new skills, and collaborate with AI systems.The future of work is not about humans versus AI; it's about humans and AI working together to achieve common goals. Key takeaways: Upskill, adapt, and embrace the change!