IBM Replaced Hundreds of HR Workers With AI

IBM has confirmed that several of its human resources employees were replaced by artificial intelligence, according to CEO Arvind Krishna. In a statement to The Wall Street Journal, Krishna revealed that while AI led to the automation of hundreds of roles, the company’s total workforce actually grew. The freed-up resources were redirected to hire programmers, marketers, and salespeople—positions requiring critical thinking and human interaction.

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Krishna emphasized that AI allows for better allocation of capital into departments that drive growth, rather than eliminating jobs entirely. Notably, he pointed to roles in software engineering, marketing, and sales—areas that AI cannot fully replicate due to their complexity and human-centric nature.

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IBM’s internal AI systems have already shown significant impact. The AskHR agent now handles 94% of routine HR queries like vacation requests and payroll information, while AskIT has cut down IT support demand by 70%. According to IBM CTO Ji-eun Lee, the company realized $3.5 billion in productivity gains over two years by deploying AI across more than 70 business operations.

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Although the timing of the HR layoffs was not disclosed, IBM’s latest annual report stated a global workforce of 270,300 employees. Rather than shrinking, the company has pivoted toward AI-driven growth, highlighted by the Think conference this week, where IBM launched new tools allowing users to create autonomous AI agents in under five minutes. The offering competes with similar services from tech giants like Amazon, Microsoft, and Nvidia.

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IBM’s generative AI division has already grown into a $6 billion business. Krishna, who has been with the company for over three decades and became CEO in 2020, is steering IBM through a major transformation toward becoming a leader in artificial intelligence. Analysts describe this shift as the beginning of a long-term evolution.

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IBM joins a growing list of companies replacing roles with AI. Klarna’s CEO previously said its chatbot replaced 700 customer service agents, while Salesforce’s CEO noted their AI could take over gig roles during high-demand periods.

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