IBM sends HR staff packing as AI replaces them; hires more tech, sales workers: Report
IBM
has used artificial intelligence to automate several human resources functions, replacing 'a couple hundred' HR roles, said chief executive officer Arvind Krishna, according to a Wall Street Journal (WSJ) report.
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Krishna said the move allowed the company to hire more programmers and sales staff, as it reallocates resources toward areas driving growth.
The remarks come amid growing corporate adoption of
AI
agents (autonomous tools that can analyse spreadsheets, conduct research and draft emails), as companies explore the impact of generative AI on workforce dynamics.
'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,' Krishna told WSJ.
The primary objective of AI integration, he said, is to improve operational efficiency by automating repetitive HR tasks such as employment verification and internal transfers. This shift allows HR teams to focus on strategic, higher-value initiatives.
IBM's comments come as the information-technology workforce continues to shrink, with AI weighing on hiring in some areas as companies reassess their staffing needs. While widespread layoffs due to AI are yet to materialise, the report noted that some companies are holding back on headcount expansion as they evaluate the technology's long-term potential.
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For IBM, however, AI adoption has led to increased hiring in select functions. The company is currently hosting its annual Think conference in Boston.
Krishna said clients are ramping up investments in AI despite ongoing economic uncertainty, as
ET reported on May 6
. He noted that businesses are turning to AI to boost productivity, reduce costs and increase revenue.
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