AI Revolution Unveiled: IBM's Job Overhaul and Chegg's Market Response
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Since the launch of ChatGPT, there have been a number of different uh, you know, predictions. People have been saying this is gonna ite about massive industries is going to take over tons of jobs. And to this point, we haven't really seen a lot of these ramifications.

However, just recently, some news has broken that seize a little bit that is bringing us a little bit closer to this whole situation that people have been concerned about. Um so we're going to talk about that today and we're going to talk about some of its implications and what we think is going to happen to the labor market. So the news out of bloomberg is that IBM decided to halt hiring for about seventy eight hundred jobs that they had open, and they said that they are halting hiring for these seventy hundred jobs that could be replaced by A I.

So the C E O of IBM said that he believes roughly thirty percent of their back and roles can be place in the next five years by ChatGPT in different A I tools. And so because of this, they're been really thought for who they're hiring, how they're hiring and if they need to even hire someone for that role. He said that rules in um human resources and non castle facing jobs are going to be the ones that are a deep impacted the most essentially.

And so this is a pretty this is a pretty big um area. I think IBM as a whole is talking about you know these cuts, which though they're primarily impacting you know those areas of non consumer or non customer facing roles. And he said that am all in all, that's a division that accounts for around twenty six thousand workers at the company.

So IT is interesting to think too right like if this is the way they're going right now um with A I kind of in its infancy like where does this ago? There might be shopping in seventy hundred jobs right now, but um there's twenty six thousand jobs ah that are currently there. How many those will eventually all just be automated in the future? And you know he also talks about um easily. He said he can see thirty percent getting replaced by A I but I mean, what's the one of the odds that is this thing it's Better IT gets more automated.

You need less humans to run IT um what are the odds that that claims I think more something like ninety percent of these jobs could um be getting reacted by A I just having a very small number of humans that are managing them now I know that that sounds like a you know a pessimistic take on the whole thing um and you know like they are definitely awesome concerns along with all of this um and there is also some questions of you know like this isn't something super in common is always these technological advancements and innovation always causes disruption in different jobs become um not needed anymore, eliminated rules become eliminated. But it's interesting because I think one of the big controversies are now A I isn't just the fact that, you know, there is this new disruption that eliminate in jobs. I mean, honestly, that just happens.

And IT is IT hard for people that that was a job before, of course. Do we have empathy for them? Of course, that is not very difficult. But you know, these things happen to stop in them, really. And so um I think the bigger so that but that's just that is just what IT is and that's been like that for a long time now. The bigger criticism with a iron now the people are complaining about is just th Epace.

I think we can all agree that th Epace o f t his A I t hat h as b een r olled o ut i n r ecent y ears i s i s j ust a stonishingly f ast i n r ecent m onths, right? Always every single new day, there is an update that is coming through on A I anything. That's what a lot people are criticizing um we see people like elon must call for six months ban um but that of course he's going launch his own A I tool so that ban would have definitely helped him out um to catch up.

I don't really know if you you know there is any really any stop in IT um because inevitably whether we uh institute six months ban through litigation or through laws or whatever, other countries aren't going to listen to IT. So um I don't really know if that's a very effective method. In any case, it's step in an open debate that people are having right now.

So it'll be interesting to see where that goes. Now with all that being said, um IBM IT employees about two hundred and sixty thousand people and earlier IT cut about one point five percent its work for. So I do believe that there is going to be a pretty significant cut in jobs coming in the future.

And I think what's interesting to a lot of people are talking about like, oh, you know, tragedy B T your a is is going to be taking jobs and and what not in the future. I think beyond just taking jobs, I think IT has a very real impact on a lot of businesses that might not just be like the roles. So an example of that is that recently, the CEO of chegg, so checks like a homework, helping a company.

And they recently came out and said that since, you know, ChatGPT has been out there, people are a lot less likely to pay their fifteen dollars a month for their kind of homework helpers. I remember in college check, you know, you'd search the answer to like a quiz question and there is like others always like a cheer response. But if you click on IT, IT was behind a pay walls like you can never actually see IT and uh you know they want to people to pace.

You could see like um for quiz prevent for I think IT would had like essay examples and all sorts of like homework help um in any case yet to pay for. And when chat beauty first came out, they said they didn't see a significant i'm changed in their new user subscriptions. So that was all good.

Other stock kept playing along. But then in march, apparently they said they have noticed a real downturn in new users and they believe it's because everyone is just using ChatGPT to write their essays and answer questions about everything um and so they're not really that needed. So when this happened, the CEO just talked about this recently and the stock plumet about forty two percent, which is a pretty massive crash in a stock Price.

And you know this is, you know the C E O. It's pretty open right now talking about this. All all C, E O, all companies are going to have to be pretty honest about this in the future.

I see this is as a big area, right? There's just a lot of um companies that are in canada cross hairs of open a eye in ChatGPT in what IT is, how it's kind of revolutionizing content. And inevitably, those companies are going to see um they're gona see a pretty massive uh crash stock Prices or in sales or whatever.

And and I know that this whole thing is going to a get a lot of hate, obviously, from people that are affected by this. And I have you know the deepest empathy for them there. That means said, though, technological innovation always does come around.

And if there's a way to do things faster and cheaper, usually that overall helps the global standard of living as we're able to buy more things, create more things. And so well, this is rough and this is definitely be a big uh, time of transition. I think we're going to see two camps set up.

There's going to be the people that are are resisting the change and trying to slow IT down. There's going to people that are embraced in IT and try to run forward with IT. Um at the end of you know this is probably good baLance between the two things.

But the thing that I think is certain as there is no stopping you know this innovation in the advancement in A I um and the disruption that it's having, there is no stop and it's onna happen inevitably. So people can try to slow down or push IT off or whatever they try to do through laws. Are other things right? Like italy just banning IT for different reasons.

But inevitably it's happening. It's it's moving forward, the technologies there. And so I think at this point, people just need to learn how to embrace IT. Use IT in your current role at your current company, use IT find out how this thing makes you Better at whatever you do and how you can harness IT. And I think at the end of the day, that is going to be a solution that helps ensure jobs security for people in the long term and helps continue to let us, you know, not i'll lose our jobs to the AI, but rather be augmented and become more skilled because of IT.