IBM CEO Arvind Krishna confirmed that AI has replaced a few hundred HR jobs but overall employment at IBM has increased. The focus is shifting to critical thinking roles like software engineering and sales. IBM embraces AI tools flexibly for customers and plans major US investments despite tariff concerns.
IBM CEO Arvind Krishna recently addressed the impact of artificial intelligence (AI) on employment within the company, acknowledging that AI has replaced the work of a few hundred human resources (HR) employees. However, he emphasized that IBM’s total workforce has actually increased, reflecting a strategic shift rather than a reduction in headcount.
In an interview with The Wall Street Journal, Krishna explained that while AI and automation have streamlined some enterprise workflows—particularly in routine, process-driven tasks—the company has simultaneously expanded investment in other critical areas such as software engineering, sales, and marketing. These functions, which Krishna refers to as “critical thinking” roles, require human judgment and interaction that AI cannot easily replace.
While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up, because what it does is it gives you more investment to put into other areas.”
Arvind Krishna, CEO of IBM
Krishna also clarified that IBM’s AI-driven automation is designed to complement, not entirely replace, human labor. IBM aims to enable customers to use the AI tools best suited to their needs, reflecting a flexible approach to integrating AI solutions. This “use what’s appropriate” mindset extends to AI alongside IBM’s broader cloud-computing offerings.
The CEO also commented on the potential effects of US tariffs imposed during Donald Trump’s administration. He noted that the impact on IBM’s business has been “very limited” so far, primarily because IBM manufactures key products like mainframe computers and quantum systems domestically. However, a slowdown in demand due to tariffs could reduce discretionary spending in consulting services. Krishna explained that the company could manage a small impact of around 3 to 4 percent, but a larger 10 percent effect would require “hardheaded management decisions.”
Looking ahead, IBM announced plans to invest $150 billion in the US over the next five years, underscoring its commitment to growth and innovation amid ongoing global economic challenges.