In a bold move in 2023, IBM laid off nearly 8000 employees, primarily from its HR department. The goal was to automate repetitive tasks using a powerful AI tool called AskHR. This system efficiently handled payroll, leave requests, and employee documents, boosting productivity and drastically cutting costs.
AskHR Automates 94 Percent Of HR Tasks
The AI-driven AskHR platform proved remarkably successful, automating around 94 percent of routine functions. IBM claimed this transformation contributed to a $3.5 billion rise in productivity across 70 different roles. The company joined tech giants like Google and Spotify in a growing trend to automate support functions and streamline operations.
Layoffs Without Job Loss? A Surprising Turn
Contrary to expectations, IBM’s workforce did not shrink after the layoffs. Instead, total employment increased. CEO Arvind Krishna explained that automation allowed the company to reinvest in areas that demand human skills—like software engineering, marketing, and customer service. Jobs requiring creativity and strategic thinking are now IBM’s focus.
Shifting From Repetition To Innovation
IBM used savings from AI automation to hire talent in high-value roles. These included programmers, marketers, and client-facing professionals—positions less prone to automation. The shift reflects a broader strategy: use AI to handle repetitive work and free up people to innovate, engage with clients, and build tech solutions.
AI Cannot Replace Humans Completely
Despite impressive AI performance, 6 percent of tasks still required human intervention. AskHR handled over 11.5 million interactions in 2024 and raised its Net Promoter Score from -35 to +74. But IBM’s approach clearly acknowledges that certain roles still need the human touch.
The Future Of Work Is Hybrid
IBM’s AI-powered transformation reveals how the future of work is evolving. Automation is not about removing people—it is about reassigning them. The company now operates with a larger team, distributing work more efficiently between AI and humans. IBM is proving that innovation and employment growth can go hand in hand.