The rise of artificial intelligence is likely to see tech giant IBM hire thousands fewer people over the next five years, potentially reducing its need for office space.

IBM CEO Arvind Krishna told Bloomberg that back-office functions like HR would be paused in many cases because the roles can be undertaken by AI. He said the company employed about 26,000 people in noncustomer-facing roles, and about a third of these, or 7,800 people, could be replaced by AI or automation.

At about 100 SF per person, that equates to about 780K SF of office space that could become obsolete for the company. IBM employs 260,000 people in total, and is headquartered in Armonk, New York.

AI innovation has hit the headlines in the past few months, with tools like ChatGPT throwing a spotlight on technological advances in creative tasks such as writing text, coding and image design.

As with many technological innovations, the overall impact of AI on employment and corporate office space needs is uncertain.

Reports from both the UK and U.S. governments in the past six months came to the same conclusion: While AI will mean many humans being replaced by technology, it is likely to create new roles as well, in fields like data analytics. Increases in productivity could allow companies that use AI well to expand and hire more people.

The UK government has predicted net job losses in a number of sectors as a result of AI, including manufacturing, transport and logistics, public administration and defence, wholesale and retail, and finance.

But AI is expected to lead to net job gains in information and communication, education, professional and scientific sectors, and health and social work.