IBM CEO: Companies Risk Falling Behind by Moving Too Slowly on AI
Arvind Krishna, chief executive of International Business Machines, said the bigger threat to companies isn't adopting artificial intelligence too fast-it's hesitating to adopt it at all.
In an interview published April 17, Krishna said many business leaders still underestimate how critical technology has become to their operations. That misunderstanding could determine winners and losers over the next several years.
"I never have a fear of moving too fast," Krishna said. "The fear is of falling behind or of making completely the wrong bet or the wrong strategy."
Technology Now Rivals the Balance Sheet
Krishna said executives often treat technology as a support function rather than a core business driver. Most CEOs have not yet accepted that "technology is probably as important as their balance sheet," he said.
The shift reflects how companies create value. In earlier decades, competitive advantage came from physical assets, then talent, then access to capital. Now, Krishna said, technology sits alongside those factors as essential. "How well you can use technology to run your company is the most important," he added.
AI Won't Consolidate Around One Platform
Krishna rejected the idea that a single dominant AI system will emerge. Instead, he expects a hybrid ecosystem: a handful of large language models handling broad tasks, alongside hundreds or thousands of smaller, specialized models built for specific purposes.
"We are going to have three or four very large models. They do certain things," he said. "We're going to have hundreds, maybe thousands of smaller but far more purpose-built models, with much more curated data."
That strategy aligns with IBM's broader approach to hybrid cloud and AI, where clients combine different systems rather than relying on a single provider.
Quantum Computing Moves Into Planning Phase
Krishna said quantum computing represents the next major technological frontier. He expects practical, large-scale quantum applications to arrive in three to five years.
"Quantum computes the future," Krishna said, distinguishing it from AI's strength in prediction. "So that unlocks problems you can't even imagine doing with AI."
He urged companies to begin evaluating quantum applications now, even though widespread adoption remains years away. IBM has invested heavily in quantum technology and expects clients to follow suit.
IBM Faces Investor Skepticism
IBM shares are down 14 percent year-to-date. The stock fell more than 20 percent in February after Anthropic released Claude Code, which investors feared could automate legacy COBOL system modernization-a high-margin consulting service for IBM.
Morgan Stanley analyst Erik Woodring lowered IBM's price target to $215 from $247 before the company's first-quarter earnings report on April 22. Woodring said even positive quarterly results may not revive the bull case, as software, services, and quantum competitors continue to lose investor favor.
IBM is shifting toward higher-growth areas like its watsonx AI platform and enterprise AI services while betting on quantum computing as a longer-term opportunity.
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