White-collar jobs will be among the first to be impacted by artificial intelligence, according to IBM chairman and CEO Arvind Krishna. In an exclusive interview with CNBC, Krishna stated that generative AI and large language models have the potential to enhance productivity in every enterprise process.
Krishna believes that back office, white-collar work will be the initial roles to experience the impact of AI, as it can enable organizations to achieve the same level of output with fewer employees. He emphasized the necessity for productivity as the working age population continues to decline, stating that AI is the only viable solution.
The rise in demand for AI-powered chatbots, such as OpenAI’s ChatGPT, has resulted in numerous companies venturing into the development of their own large-language models. IBM has been at the forefront of AI, investing in its own platform and developing the supercomputer Watson from 2004 to 2011.
“It’s absolutely not displacing — it’s augmenting. The more labor we have, especially if it’s not human-based at all, the more GDP we can create. We should all feel better about it.”
Arvind Krishna
IBM chairman and CEO
In May, IBM introduced WatsonX, an AI building tool that allows clients to develop and deploy machine learning models. This initiative followed the sale of IBM’s data and analytics unit, Watson Health, due to years of unprofitability.
Shortly after, IBM announced a hiring pause for back office roles that could potentially be replaced by AI. According to Krishna, around 7,800 jobs, primarily in departments like human resources, can be automated with AI and artificial intelligence. IBM had previously confirmed plans to cut approximately 3,900 jobs.
As of IBM’s 2022 annual report, the company and its subsidiaries employ 288,300 individuals across more than 175 countries.
Krishna clarified that the intention is not to completely eliminate white-collar roles but rather supplement them with digital labor and AI bots. He emphasized that AI is not displacing jobs, but augmenting them, ultimately leading to increased GDP.
In an interview in May, Krishna affirmed that AI will create more jobs than it replaces. This sentiment was echoed by Singapore’s Deputy Prime Minister Lawrence Wong, who stated that although AI may disrupt the labor market, it will not result in job elimination. Wong believes that technology can enhance human productivity and generate additional employment opportunities.
The Potential of AI
“With large-language models, you use a lot of data, but no labeling. So very few people are required to produce a map model.”
Arvind Krishna
IBM chairman and CEO
During IBM’s second-quarter earnings call in July, Krishna highlighted the significance of AI in various areas, including IT operations, automation, customer service, and HR. Data and artificial intelligence products experienced rapid growth and became the largest division of IBM’s software business.
Krishna referenced Watson’s victory on “Jeopardy!” in 2011 to illustrate the potential of large-language models. He emphasized that these models require minimal human involvement and can be easily adapted for different tasks at a significantly reduced cost.
Krishna expressed confidence in the current market climate to commercialize and further develop AI technology.
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