IBM's recent developments have sparked quite a bit of controversy. CEO Arvind Krishna stated that as the company actively promotes artificial intelligence technology, hundreds of positions in the human resources department have been replaced by AI agents. However, this doesn't necessarily signal a wave of layoffs, as IBM is simultaneously hiring more staff in areas like software development and sales, leading to an actual increase in the overall employee count.
At the IBM Think conference held in Boston, Krishna explained that after IBM enhanced its internal operational efficiency through AI automation, the savings were redirected to areas that require more human involvement, such as software development, marketing, and sales. These roles involve interaction with clients and cannot be entirely reliant on automation.
Although IBM hasn't disclosed specific figures or the timeline for job displacement due to AI, Krishna made it clear that a significant amount of AI tools are being applied internally in daily operations. For instance, AI agents can automate several steps in the recruitment process, such as screening resumes, scheduling interviews, and preparing hiring documents, thereby reducing the demand for human resources. In this regard, IBM has already replaced the jobs of hundreds of HR department employees, freeing up more resources for the company to invest in key business areas. Krishna noted that these new positions require higher levels of critical thinking rather than merely repetitive tasks.
As AI agent technology becomes more widespread, major tech companies are starting to roll out similar solutions. Right now, IBM has officially launched a new service that allows businesses to create their own dedicated AI agents and supports the integration of various AI tools to manage different business data. IBM states that these services can be combined with clients' existing AI tools and cloud platforms, providing flexible options for businesses to adopt As long as it fits well, that's all that matters. strategies.
Krishna believes that innovations in AI technology have led to a plethora of consulting contracts, with the company currently amassing around 6 billion USD (approximately HK$46.8 billion) from clients eager to adopt generative AI. However, he also acknowledges that the overall fluctuations in the economic environment have placed pressure on the consulting and software sectors.
In addition to challenges in AI, Krishna also provided a brief response regarding the potential impacts of the U.S. tariff policies. Since IBM's mainframe and quantum systems are primarily produced in the United States, the expected impact of tariffs on the business is relatively limited. However, he noted that if tariffs affect discretionary spending in the consulting industry by 10% or more, more cautious management decisions would need to be made.
