IBM, the global technology behemoth, has achieved a savings of nearly US$300 million in employee retention costs by utilizing artificial intelligence to attract “flight-risk” employees.
Flight-risk employees are personnel who are essential to the organization but are susceptible to departing during a critical period. IBM asserts that its proprietary AI tool can accurately anticipate which employees are on the brink of quitting with a 95% accuracy rate.
IBM CEO Ginni Rometty stated at an HR summit in New York, “The most effective time to communicate with an employee is prior to their departure.” Rometty refrained from discussing the precise operation of the “predictive attrition program.” The sole difference is that the procedure employs numerous data points.
IBM has been at the vanguard of the AI revolution in business for a long time, a fact that is largely due to IBM Watson. The company’s machine learning platform is applicable to a diverse array of industries, including financial services, human resources, and health.
Rometty herself suggests that conventional HR processes be modernized with the assistance of AI to enable HR professionals to concentrate on work that is more valuable, which she refers to as a “labor of love.”
IBM has reduced the size of its global HR staff by 30% since the decision to integrate AI into HR. Rometty stated, “You must incorporate AI into all of your operations.”
“The percentage of jobs that will be affected by AI will be 100%.”
Addressing employee attrition is merely one component of the equation. IBM managers are also forthcoming with employees regarding their proficiency in meeting market demands, particularly in light of the fact that AI is introducing new roles and necessitating new competencies in the workplace.
“I anticipate that AI will transform 100% of jobs within the next five to ten years,” Rometty stated. She elaborated that this degree of transparency regarding employees’ career trajectories will become even more crucial in the future.
Rometty stated, “If you possess a skill that is not required in the future, is readily available in the market, and does not align with the company’s strategy, you are not in a satisfactory position to remain within.”
However, when an employee falls behind, IBM’s My Career Advisor, a virtual assistant, assists them in identifying areas for improvement.
Rometty stated, “This is a game that is entirely dependent on skill and the presence of individuals with the appropriate abilities.” “The occupations of all individuals are evolving.”
