In a bold move to embrace artificial intelligence, IBM axed thousands of jobs. But what they didn’t expect was that AI would turn around and create a demand for even more workers—just of a very different kind.
When AI Comes for the Jobs
Back in 2023, IBM made headlines with a sweeping decision to let go of nearly 8,000 employees, many of them in human resources. The goal? Automate repetitive tasks using artificial intelligence and save both time and money. It was part of a growing wave of digital transformation across the tech industry, with other giants like Google and Spotify making similar moves.
At the heart of IBM’s shift was AskHR, a sophisticated AI-driven chatbot. It didn’t just handle a few FAQs—this virtual assistant took over 94% of routine HR work, from holiday requests to payroll support. The result? A staggering $3.5 billion in productivity gains across more than 70 different job categories.
It looked like a case study in clean, efficient automation. But then came the twist.
AI Giveth, and AI Taketh Away
Despite the initial wave of job cuts, IBM’s workforce began to grow again—surprising even its leadership. CEO Arvind Krishna admitted as much in an interview with the Wall Street Journal, noting that while AI had streamlined operations, it also freed up resources for strategic reinvestment.
With those savings, IBM started hiring in droves—this time, bringing in software engineers, salespeople, and marketing specialists. Roles that required creativity, critical thinking, and good old-fashioned human interaction were now in high demand.
Put simply, AI took over the predictable, low-touch work, and made space (and budget) for roles that machines can’t easily fill. The company hadn’t just cut jobs—it had pivoted its entire employment model.
The Bigger Picture: A Changing Job Market
IBM’s experience is far from unique. Across industries, companies are discovering that while automation might eliminate certain tasks, it also sparks new needs. From Duolingo to customer service platforms, many have replaced staff with chatbots, only to realise that automation has its limits. In some cases, they’ve had to rehire people to handle tasks AI just couldn’t manage.
The key to success lies in how companies use their savings. IBM’s reinvestment strategy proved critical—especially in ensuring their AI didn’t just replace workers, but create higher-value roles in the process.
Take AskHR again. In 2024 alone, the platform managed over 11.5 million interactions, with customer satisfaction (measured by NPS) soaring from -35 to +74 in just a few years. Still, around 6% of queries required a human touch—proof that AI can support, but not fully replace certain kinds of expertise.
Rethinking Work in the Age of AI
IBM’s journey offers a glimpse into the evolving landscape of work. According to the World Economic Forum, around 92 million jobs could disappear by 2030 due to automation—but that’s only half the story. New, often better-paid roles are already taking shape, from AI trainers to ethics consultants and machine learning specialists.
For companies, the challenge will be preparing their workforces for this shift—reskilling, retraining, and adapting HR strategies to match a changing world. For workers, it means staying nimble and embracing lifelong learning as the new norm.
At IBM, artificial intelligence didn’t just change how things were done—it forced a rethink of what work even means. And that may be its most human impact yet.
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