IBM’s use of artificial intelligence to streamline its operations led to the elimination of around 8,000 positions in 2023. Despite this major workforce reduction, the company’s overall headcount later rose as demand increased in areas strengthened by the same AI technologies that had replaced repetitive tasks. CEO Arvind Krishna explained in an interview with the Wall Street Journal that automation allowed IBM to cut costs and reinvest in strategic sectors, ultimately creating new, higher-value jobs that required advanced human skills.
IBM introduced a company-wide AI initiative aimed at automating routine functions, particularly within human resources. A digital assistant called AskHR was deployed to manage up to 94 percent of standard HR operations such as payroll inquiries, vacation requests, and document management. This transformation generated approximately $3.5 billion in productivity gains across more than 70 business units. However, as automation took over repetitive work, IBM found new openings for software engineers, sales specialists, and marketing professionals to handle complex, creative, and client-facing tasks that AI could not perform effectively.
The cost savings achieved through automation were redirected toward departments requiring innovation, analytical thinking, and customer engagement. This shift illustrated how AI can eliminate lower-skill roles while creating opportunities in higher-skill, knowledge-based fields. The company’s hiring trends highlighted a global pattern: automation reduces administrative staff but increases demand for technical experts, creative thinkers, and AI managers.
AskHR handled over 11.5 million employee queries in 2024, helping IBM improve its Net Promoter Score from -35 to +74, an indicator of stronger employee satisfaction and service efficiency. Nevertheless, about 6 percent of cases still required human oversight, showing that AI is not yet capable of resolving complex or nuanced issues independently. Other companies, such as Duolingo, have experienced similar challenges, discovering that over-reliance on automation can reduce service quality and force rehiring to maintain performance.
IBM’s experience underscores the broader implications of artificial intelligence in the global workforce. Research from the World Economic Forum suggests that by 2030, up to 92 million jobs could disappear due to automation, yet many new positions will emerge in data science, AI training, cybersecurity, and digital management. IBM’s strategy shows that successful integration of automation depends on balancing efficiency with investment in people. By prioritizing re-skilling and strategic hiring, businesses can turn AI from a job-cutting mechanism into a catalyst for sustainable growth and innovation.
