IBM CEO: Automation Will Create More Jobs Than it Eliminates
Automation has long been a topic of debate when it comes to its impact on employment. However, IBM’s CEO, Arvind Krishna, believes that automation will actually create more jobs than it eliminates. During a recent appearance at Fortune’s CEO Initiative conference in Washington, D.C., Krishna clarified the misconception that increased productivity always leads to job loss.
People mistake productivity with job displacement, Krishna stated. He cited IBM’s own experience, explaining that as the company phased out a few hundred back-office HR roles over several years, it simultaneously increased headcount in software engineering and sales roles. The net result was a substantial increase in jobs, not a decline. The increase was like 8,000; the decrease was like 800, Krishna revealed.
While Krishna acknowledged that certain repetitive white-collar jobs will be affected by automation, he emphasized that AI technology will not completely replace human workers. He predicts that AI will only take over 10% to 20% of lower-level tasks, leading to a 30% increase in productivity for programmers. In fact, Krishna has no intention of eliminating a single programmer; instead, he expects to hire more as productivity and demand for IBM’s goods and services grow.
The CEO also highlighted the positive implications of increased productivity for developed countries. Krishna believes that the developed world faces a labor shortage in the coming years, making productivity gains essential for sustaining the current quality of life. Conversely, developing countries have a surplus of workers eager to fill open jobs. Thus, increased productivity driven by AI is likely to create employment opportunities globally.
Krishna drew attention to the unforeseen job opportunities created by technological advancements, illustrating his point with examples from the smartphone and software industries. As smartphones became more prevalent, the demand for software designers skyrocketed. Similarly, the rise of Uber created a new market for app developers. These examples demonstrate that as technology evolves, so do the job market and the demand for new skills.
In IBM’s case, AI has already played a significant role in critical tasks such as chip design, with approximately 75% of the company’s chip design work being done by AI. This integration of AI technology has resulted in increased efficiency and cost reduction.
The conversation at the conference also delved into the ongoing AI arms race between the United States and China. Krishna acknowledged China’s advanced AI capabilities but maintained that the U.S. leads in AI development. However, he highlighted China’s advantages, such as the government’s ability to leverage vast private datasets and its openness to exploring AI applications that the U.S. may consider undemocratic. As a result, the global development of AI is likely to become more fragmented along national lines.
Qualcomm CEO Cristiano Amon joined Krishna in the discussion, expressing his belief that the U.S. can become the dominant force in AI and related industries. Amon stressed the importance of attracting talent to the United States to support AI development.
In conclusion, IBM’s CEO, Arvind Krishna, remains optimistic about the future of automation and its impact on employment. He counters the common assumption that increased productivity inevitably leads to job losses, citing IBM’s own experience of creating more jobs through automation. Krishna believes that AI will enhance productivity and create new job opportunities, ensuring a positive outlook for the global workforce.
