IBM has announced a significant shift in its workforce strategy, replacing 200 human resources (HR) professionals with AI-powered agents.
The move, confirmed by CEO Arvind Krishna, is part of IBM’s broader effort to automate routine HR tasks, improve efficiency, and redirect resources toward high-value roles such as software engineering, sales, and marketing.
While IBM has not disclosed the exact timeline for these job reductions, the company insists that overall employment has increased, as AI-driven automation has allowed IBM to invest in other critical areas.
IBM has reported a $3.5 billion productivity improvement over the past two years due to AI adoption across 70 business areas.
The company’s annual Think conference showcased new AI tools that allow customers to build autonomous AI agents in under five minutes, further reinforcing IBM’s commitment to AI-driven enterprise solutions.
AI-Powered HR Transformation at IBM
IBM’s AskHR AI agent now automates 94% of routine HR tasks, including:
- Processing pay statements
- Handling vacation requests
- Managing employee inquiries
Additionally, IBM’s AskIT AI agent has reduced IT-related calls and chats by 70%, demonstrating the company’s broader push toward AI-driven enterprise solutions.
Workforce Shift and Hiring Strategy
Despite the replacement of HR professionals, IBM has expanded hiring in other departments, particularly in software engineering, sales, and marketing.
Arvind emphasized that these roles require critical thinking and human interaction, making them less susceptible to automation.
IBM’s AI-driven restructuring aligns with industry trends, as companies like Amazon and Meta also implement AI-based workforce optimization strategies.
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