IBM CEO Confirms AI Replaced Hundreds of HR Jobs While Boosting Hiring in Tech and Sales

IBM Replaces Hundreds of HR Workers with AI, CEO Confirms

IBM's CEO Arvind Krishna recently revealed that the company has automated the work of several hundred human resources employees using AI. This automation is primarily handled by IBM's AskHR agent, which now manages 94% of routine HR tasks such as pay statements and vacation requests.

Despite these layoffs in HR, IBM's overall workforce has grown. Krishna explained that the company redirected resources from routine HR roles to expand teams in software engineering, marketing, sales, and other roles requiring critical thinking and direct human interaction.

AI Driving Efficiency in HR and IT

IBM's Chief Technology Officer Ji-eun Lee shared that AI agents like AskHR and AskIT have significantly reduced the workload for HR and IT teams. AskHR automates simple, repetitive tasks, while AskIT has decreased IT-related calls and chats by 70%. This shift contributed to a $3.5 billion productivity gain across over 70 business functions in just two years.

As of IBM’s 2024 annual report, the company employed 270,300 people worldwide, reflecting growth despite AI-driven changes in staffing.

Expanding IBM’s AI Business

At IBM’s recent Think conference, the company introduced new generative AI products aimed at growing its AI division, now a $6 billion business. These tools let customers create AI agents capable of autonomously performing complex tasks within minutes. This offering competes with similar services from Amazon, Nvidia, and Microsoft.

Leadership Perspective and Industry Context

Arvind Krishna has been with IBM for over 34 years and has been CEO since 2020. Analysts note his efforts to shift IBM’s focus firmly toward AI technologies, calling it “the first inning in a nine-inning game.”

IBM is not alone in using AI to replace human roles. Klarna’s CEO reported that their AI chatbot replaced 700 customer service agents, leading to a hiring freeze. Salesforce’s CEO also mentioned AI agents could substitute gig workers during peak times. These examples highlight a broader trend of AI transforming HR and customer support functions.

What HR Professionals Should Consider

• AI can automate repetitive and routine HR tasks, freeing teams to focus on strategic and interpersonal responsibilities.
• Upskilling in AI-related tools and understanding automation can help HR professionals stay relevant and effective.
• Organizations may shift resources from traditional HR roles to positions that require critical thinking and direct human engagement.

For HR professionals interested in learning how AI impacts their field or looking to enhance their skills, exploring specialized AI courses can be valuable. Resources like Complete AI Training’s courses for HR professionals offer practical guidance on adapting to AI-driven changes.