IBM Job Cuts: AI Impact on HR

IBM has reportedly laid off approximately 8,000 employees, with a significant portion of these job cuts affecting the Human Resources (HR) department. This decision follows reports that IBM replaced 200 HR positions with AI agents as part of an automation initiative.

The increasing use of AI is gradually phasing out roles previously held by humans. Earlier this month, IBM reportedly implemented AI agents to handle tasks such as information sorting, employee query responses, and internal paperwork processing. These AI agents are designed for repetitive tasks requiring minimal human intervention.

IBM's CEO, Arvind Krishna, suggested that AI and automation were being utilized to improve enterprise processes and enhance team efficiency. Krishna stated that IBM's total employment had increased because savings from automation were reinvested into areas like software development, marketing, and sales. IBM maintains it is shifting its focus, not shrinking.

While jobs requiring creativity, strategic thinking, or interpersonal skills remain in demand, roles involving routine tasks, particularly in back-office functions, face higher risk. IBM’s Chief Human Resources Officer, Nickle LaMoreaux, stated that AI would handle repetitive tasks, allowing employees to concentrate on areas needing human judgment.

IBM continues to promote its AI tools, launching services at its annual Think conference to assist businesses in creating and managing their AI agents. These tools are designed to integrate with platforms from OpenAI, Amazon, and Microsoft.

Duolingo announced it would replace human contractors with AI. According to a memo from Shopify CEO Tobias Lutke, before hiring, teams must justify why AI cannot do the job.