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 also pivoted business models as artificial intelligence increasingly disrupts norms.

By Madeline Garfinkle

Laurence Dutton | Getty Images

As prompt-driven AI chatbots, such as ChatGPT, have garnered worldwide attention and tech giants enter the artificial intelligence race with urgency, machine-learning tools are simplifying a slew of everyday tasks. Now, as a new technological frontier has begun, the question looms as to where humans stand in the future of an AI-operated world.

On Sunday, the World Economic Forum released its "Future of Jobs" report, which estimated that nearly 14 million jobs could be eliminated by 2027 — due primarily to increased automation of many work tasks.

While the report's predictions used a five-year benchmark, AI has already disrupted a swarm of industries.

On Monday, International Business Machines Corp. (IBM) CEO Arvind Krishna told Bloomberg that the company intends to pause or slow hiring on roles it believes could be entirely outsourced to AI. Krishna estimated that the adoption of AI could replace nearly 30% of its workforce, amounting to 7,800 jobs.

Back in January, Alphabet (parent company of Google) announced 12,000 job cuts to focus on AI development — a similar move by Microsoft, which also cut thousands of jobs and increased AI spending.

But AI isn't just affecting tech giants competing in a new technological frontier or business magnates looking to automate tasks — several businesses have already noted losses due to the widespread use of machine learning tools like ChatGPT.

Related: AI Could Eliminate Millions of Jobs By 2027, but Cognitive Skills Are Increasingly Important for Employers

Homework help platform Chegg, which focuses on essay writing and other related things, said in an earnings call on Monday that ChatGPT has vastly impacted its business. As of Tuesday morning, the company's stock is down over 60% year-to-date.

Chegg is working with OpenAI to develop its own AI technology, CheggMate. The tool is positioned to guide student learning and be interactive, so students can ask new questions or prompt the tool to explain things in a different format.

The somewhat "if you can't beat them, join them" approach by Chegg is not uncommon as artificial intelligence disrupts tasks that — until recently — seemed impossible without human cognition. Other companies like Snap and Tinder have utilized artificial intelligence to streamline processes and garner more engagement as competition rises. The increasing integration of AI only furthers the World Economic Forum's prediction that millions of jobs will be extinct at the current pace of adoption.

However, even in the wake of an AI revolution, human cognition is still valued — maybe now more than ever. The report found that with the increasing integration of technology, creative and analytical thinking skills were among the most desirable traits in workers now, and in the next five years.

It may be too soon to say, but critical thinking skills and creativity could be the difference between job security and elimination.

Related: Google CEO Sundar Pichai Says There Is a Need For Governmental Regulation of AI: 'There Has To Be Consequences'

Madeline Garfinkle

Entrepreneur Staff

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Editor's Pick

Related Topics

Business News

These 11 Retailers Are Most Likely to File For Bankruptcy in 2023, According to a New Report

Several well-known retailers already filed for bankruptcy in 2023 — now, a new report is highlighting the retailers most likely to follow suit.

Business News

'I'll Gladly Cancel': Customers Livid as Netflix Is Reportedly Increasing Subscription Prices—Again

The Wall Street Journal reported that price hikes are set to roll out following the actors' strike.

Fundraising

Is Your Pitch Not Working? Here's How to Fix It, According to Experts.

On the season finale of "Fix My Pitch," business coaches Anthony Sullivan and Tina Frey offer their final lesson to entrepreneurs hoping to pitch their way to a life-changing investment.

Business News

'It's Getting Worse By the Week': Kevin O'Leary Issues Grave Warning About Commercial Real Estate Industry

The "Shark Tank" star spoke to impending devaluation of stocks in the industry on FOX Business' "Varney & Co."

Business News

Man Unexpectedly Wins $4 Million Lottery — On a Ticket He Almost Didn't Buy

A Michigan resident stumbled upon a life-changing $4 million lottery jackpot when his preferred game was unavailable.