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IBM CEO Anticipates AI Will Replace 30% of Back-Office Roles
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IBM CEO Anticipates AI Will Replace 30% of Back-Office Roles

While AI hasn’t been causing job losses just yet, it’s starting to make companies think twice about hiring in certain sectors. IBM’s (NYSE:IBM) CEO, Arvind Krishna, believes that over the next five years, AI and automation will take over around 30% of back-office roles, like human resources. Given that IBM has roughly 26,000 employees in roles that don’t involve direct customer interaction, this shift could affect nearly 7,800 workers in the coming years. Krishna’s prediction had very little impact on investors as the stock is little changed at the time of writing.

It’s worth mentioning that IBM has been a pioneer in the world of AI and supercomputing, creating the Deep Blue system that outsmarted chess champion Garry Kasparov in 1997 and the Watson AI that claimed victory on Jeopardy in 2011. As a result, the company will look to benefit from the next era of AI technology.

Overall, Wall Street analysts have a consensus price target of $147.71 per share on IBM stock, implying over 17% upside potential, as indicated by the graphic above.

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