AI's Forefront Impact on White-Collar Jobs: IBM's Arvind Krishna

International Business Machines Corp IBM CEO Arvind Krishna highlighted in a recent discussion that white-collar roles, particularly those within the back office, are likely to be the foremost affected by the advances in artificial intelligence (AI). 

This technological evolution will likely streamline enterprise operations, leading to heightened productivity but potentially fewer human resources.

Also Read: IBM Considers Using In-House AI Chips to Reduce Cloud Service Costs

While discussing the evolving dynamics of AI on CNBC's "Squawk Box Asia," Krishna elaborated on AI's potential to revamp traditional office operations. AI's emergence will likely address the demographic challenges by optimizing tasks, especially in the wake of a diminishing working-age populace. 

Krishna believes such enhancements are pivotal to sustaining quality of life and productivity. "And AI, I think, is the only answer we got."

Surging interest in AI-driven solutions, like OpenAI's ChatGPT, has prompted many enterprises to create their large-language models. IBM, however, wasn't a mere participant in this race. 

The tech giant invested in AI and introduced Watson, its pioneering supercomputer, between 2004 and 2011. This strategic focus paralleled IBM's pivot away from computer hardware, evident when they parted with their PC division, selling it to Lenovo in 2005.

In its recent endeavors, IBM unveiled WatsonX in May, a tool tailored to assist clients in cultivating machine learning models. This announcement followed roughly a year after IBM divested its data and analytics segment, Watson Health, due to consistent non-profitability. 

Meanwhile, speculations arose around IBM's employment strategies. Reports inferred that the firm contemplated halting recruitments for positions potentially replaceable with AI, impacting nearly 7,800 roles, especially in domains like HR.

Addressing these speculations, Krishna clarified that the organization isn't merely looking to replace but augment human roles with AI. "It's absolutely not displacing — it's augmenting," he stressed. 

Emphasizing the broader picture, he shared his optimism about AI's potential to fuel GDP growth and enhance the quality of life.

In a previous dialogue with CNBC, reiterating his confidence in AI's potential, Krishna expressed that AI is poised to generate more employment opportunities than it would replace. 

This sentiment resonates with views shared by Singapore's Deputy Prime Minister, Lawrence Wong, who emphasized in June that AI might reshape the labor market and wouldn't annihilate jobs.

Since joining IBM in 1990, Krishna has been an avid proponent of AI. 

Price Action: IBM shares are trading higher by 0.56% at $143.11 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.