How AI is Changing the Way Companies Operate in 2023: From Hiring Freezes to Security Concerns

Artificial intelligence (AI) is revolutionizing company processes and organizational structures across industries, bringing transformative changes in efficiency and effectiveness.


Using AI has become standard practice for many job roles, with an estimated 48% of businesses using some form of AI to utilize big data effectively. As a result, the value for the AI industry is projected to increase by over 13x over the next 7 years.


However, one of the pressing concerns arising from AI integration is the potential for employees to inadvertently share confidential data with shared AI systems, leading to sensitive information leaks.


For instance, when using AI-driven communication platforms or cloud-based document processing tools, the risk of unauthorized access or data breaches increases, potentially jeopardizing proprietary information and client privacy.


AI also has the potential to replace mundane tasks, freeing up human resources for more strategic and creative work.


Automation of repetitive processes such as data entry, document processing, and customer service has led to significant improvements in productivity, accuracy, and cost reduction, propelling businesses into a new era of growth and innovation.


IBM's AI-Driven Workforce Strategy

IBM CEO Arvind Krishna revealed the company's plan to pause hiring for roles that could be replaced by AI in the coming years, particularly in back-office functions such as human resources. These roles account for approximately 26,000 workers, and Krishna predicts that 30% of them could be replaced by AI and automation over a five-year period. This would result in a loss of roughly 7,800 jobs.


IBM's plan is a response to the rapidly advancing technology, which has the potential to disrupt the labor market. Mundane tasks, such as providing employment verification letters or moving employees between departments, are likely to be fully automated. However, some HR functions, like evaluating workforce composition and productivity, are expected to remain unchanged over the next decade.


Reference: CSO Online. (2023, May 3). Samsung Bans Staff AI Use Over Data Leak Concerns. Retrieved from


Samsung's AI Security Concerns

Samsung has banned employee use of generative AI tools like ChatGPT to prevent the transmission of sensitive internal data to external servers. A memo issued to a key division warned employees not to use AI tools, as doing so could compromise the company's intellectual property and result in employment termination.


The memo highlighted growing concerns about security risks presented by generative AI. For example, sensitive code inputted into AI platforms like ChatGPT could reside on external servers, making it difficult to retrieve and delete, and potentially accessible by other users.


In response to the potential risks of ChatGPT and other AI systems, regulators are considering restrictions on their use. The European Parliament is close to finalizing an AI Act, and the European Data Protection Board (EDPB) is assembling an AI task force to examine potential AI dangers. Italy has already imposed privacy-based restrictions on ChatGPT and temporarily banned its operation in the country.


AI companies are starting to address privacy and data leakage concerns. OpenAI recently announced that it would allow users to disable the chat history feature for ChatGPT. Samsung is also developing internal AI tools for translating and summarizing documents and software development, as well as working on ways to block the upload of sensitive company information to external services.


Reference: CSO Online. (2023, May 3). Samsung Bans Staff AI Use Over Data Leak Concerns. Retrieved from


In Summary

AI is changing the way companies operate in 2023 and will affect operations for years to come. As AI continues to advance, businesses must adapt to the changing landscape, balancing the benefits of automation and efficiency with potential risks and ethical considerations - in whatever format that might be.

Source: Industry News