IBM’s CHRO believes AI could be the only solution to a global labor shortage

There’s been a lot of hype surrounding predictions about how many jobs will be lost to AI. Consulting firm McKinsey speculated last year that as many as 11.8 million workers will need to find new jobs by 2030, thanks to AI.

However, Nickle LaMoreaux, CHRO at IBM, believes the anxiety is overblown, and that AI will instead supplement existing jobs. In a SXSW panel on how AI is changing jobs, LaMoreaux shared how she believes AI tools will help careers, how IBM uses them, and the importance of transparency when using the technology.

On a looming global labor shortage

“There is a skills shortage in this country. There is not enough talent to do the current jobs that need to be done.

The birth rates in many major markets around the world have fallen below one. So, they are staring at a crisis, that the talent pool available is not going to be able to sustain them. AI may be the only answer.

In the short term, it’s the sexy headline to say, ‘job loss and AI’...But very few jobs can be completely eliminated due to AI…I think we’re scared about the wrong thing. Don’t be scared about job loss. I think the thing we need to be rightfully scared about is job change, and how are we going to get ready for that.”

How AI may change early careers

“I actually think what’s going to happen is [entry level workers] are going to be able to have an impact faster. They’re not going to do the transactional work. They might actually stay and not do three jobs in two industries in three years, because they’re going to be able to do higher value stuff…You need to think about it knowing that these AI tools are really going to short-circuit and bring people up the learning curve faster.”

How IBM’s HR department leverages AI

“If people want to find out what’s the maternity leave policy at IBM, what are the education opportunities, they don’t engage with somebody who’s just fielding all of those questions, they actually engage with a chatbot that’s giving them that information.

We also use generative AI in our talent acquisition process, in automation. Somebody hasn’t sent us their certification verification yet—I don’t need a person who’s checking every day [asking], ‘Has this come into the InMail, has it been uploaded?’ If it hasn’t, we have an automated, generative AI agent that sends emails, follows up without human intervention.

[AI] is the primary contact that all 250,000 employees around the globe at IBM have with HR. It is their entry into HR. We use it in compensation.

People are often surprised when I say we don’t use it for talent acquisition recommendations…yet...We are a skills-first hiring organization, so 50% of our jobs do not require a college degree. I’m a little worried about not only some of the racial, gender, ethnic bias, but also worried about a degree bias that could creep into some of the jobs.”

An organization’s AI principles

“At IBM, any time an AI is running, not only are we transparent about where and how it’s being used, we also make sure that it’s explainable…So, anytime it’s running internally in the company, you can see that. We also have a policy that AI is never a decision-maker. AI can make recommendations about your career path or learning, but a human is always needed.

You’ve got to think about each company. What are the laws you have to comply with? And given the culture of your company, you may not need the same principles that we need.”