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The first jobs to be affected by AI will be back office ones, IBM CEO says

White-collar jobs will be among the first to be impacted by artificial intelligence, IBM chairman and CEO Arvind Krishna told CNBC in an exclusive interview aired on Tuesday.

He told CNBC’s “Squawk Box Asia” generative AI and large language models have the potential to “make every enterprise process more productive.”

“That means you can get the same work done with fewer people. That’s just the nature of productivity. I actually believe that the first set of roles that will get impacted are — what I call — back office, white-collar work,” said Krishna.

He added that there is “a disinflation in the demographics” leading to a decline in the size of the working age population. “So you need to get productivity, otherwise quality of life is going to fall. And AI, I think, is the only answer we got.”

A boom in demand for AI-powered chatbots like OpenAI’s ChatGPT has led to a flurry of companies trying to launch their own large-language models.

IBM was an early mover in AI, investing in and developing its own platform well before the ChatGPT hype. From 2004 to 2011, IBM worked on a supercomputer called Watson. That strategy dovetailed with a move away from computer hardware, especially after it sold its personal computer division to Lenovo in 2005.

It’s absolutely not displacing — it’s augmenting. The more labor we got, especially if it’s not human based at all, we can create more GDP. We should all feel better about it.

Arvind Krishna

IBM chairman and CEO

In May, IBM announced WatsonX, an AI building tool that allows clients to build, train and deploy machine learning models. It came about 15 months after IBM sold its data and analytics unit Watson Health following years of unprofitability.

That same month, Bloomberg reported that IBM plan to pause hiring for roles it thinks could be replaced with AI. That’s about 7,800 jobs in departments such as human resources that could be done with AI and automation, Krishna said at that time. In January, CNBC confirmed IBM was planning to cut around 3,900 jobs.

IBM and its wholly owned subsidiaries employ 288,300 employees across more than 175 countries, the firm said in its 2022 annual report.

“So what I said was, we are not going to backfill those [white-collar] roles for the next five years. But you get digital labor or AI bots, augmenting and working alongside their fellow humans doing that work. So that is where the 7,800 [number] came from,” Krishna told CNBC’s Martin Soong.

“It’s absolutely not displacing — it’s augmenting. The more labor we got, especially if it’s not human based at all, we can create more GDP. We should all feel better about it,” said Krishna.

In an interview with CNBC in May, Krishna said AI will make more jobs than it will replace.

Singapore’s Deputy Prime Minister Lawrence Wong made a similar comment in June, saying although AI could disrupt the labor market, it won’t kill jobs completely. He added that technology could even make humans more productive and create more jobs.

AI potential

With large-language models, you use a lot of data, but no labeling. So very few people to produce a map model.

Arvind Krishna

IBM chairman and CEO

During the firm’s second-quarter earnings call in July, Krishna often mentioned the significance of AI in IT operations, improved automation, customer service, augmenting HR and more. During the quarter, data and artificial intelligence products were the fastest growing part of IBM’s software business, its largest division.

Krishna mentioned how Watson beat humans on “Jeopardy!” in 2011 and said it was an example of “hundreds of thousands of people and a lot of trained PhDs” being deployed to “create one model to do one thing.”

“With large-language models, you use a lot of data, but no labeling. So very few people to produce a map model. And now every weekend, you can create a new instance for a new task. That means your cost of a model for a task has come down by almost 100 times,” said Krishna.

“That is amazing. And that is what gives us confidence that this is the moment to go commercialize and modify.”

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

WATCH: Nintendo has ‘a lot of work to do’ to convince casual users to upgrade to Switch 2: Kantan Games

Nintendo has 'a lot of work to do' to convince casual users to upgrade to Switch 2: Kantan Games

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

WATCH: Amazon CEO Andy Jassy says sellers will pass cost of tariffs on to consumers

Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

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