In a bold example of AI-driven transformation, IBM made headlines in 2023 for laying off approximately 8,000 employees, mainly from its human resources (HR) division. The move came alongside the launch of its proprietary AI platform, AskHR, aimed at automating routine HR functions such as payroll, leave requests, and documentation.
But despite these substantial job cuts, IBM’s total workforce has not shrunk—in fact, it has grown. In a recent Wall Street Journal interview, CEO Arvind Krishna explained the company’s pivot: routine tasks were automated, but the freed-up resources were reinvested in human-centric roles like software engineering, sales, and marketing.
The AskHR platform has already logged over 11.5 million interactions in 2024, successfully handling around 94% of HR-related queries. This contributed to a significant boost in customer satisfaction, with the company’s net promoter score jumping from -35 to +74. Additionally, IBM estimates that these automation efforts have driven a $3.5 billion efficiency gain across more than 70 job roles globally.
The company’s approach to AI adoption signals a broader industry trend: automation is not merely about cost-cutting—it’s about redefining workforce priorities. IBM avoided pitfalls that others, like Duolingo, encountered when relying too heavily on AI. By acknowledging that 6% of HR tasks still require human input, IBM built a model that blends automation with strategic rehiring.
IBM’s current global workforce exceeds 270,000, proving that aggressive automation doesn’t have to equate to net job losses. Instead, it can lead to talent reallocation, reskilling, and internal mobility. The key, IBM shows, is aligning technology adoption with a forward-thinking people strategy.
For HR leaders and transformation officers, IBM offers a blueprint: AI should augment, not replace, the human workforce. The future of work lies in combining operational efficiency with strategic reinvention, using automation as a catalyst—not a crutch—for innovation and growth.