IBM’s introduction of the AskHR AI platform led to the automation of routine human resources tasks such as payroll processing, vacation approvals, and employee record management. This move resulted in 8,000 HR positions being phased out, but it also delivered a $3.5 billion productivity boost across more than 70 job roles.
Instead of reducing its overall workforce, IBM redirected cost savings into hiring for positions that demand creativity, problem-solving, and human interaction—areas where AI falls short. New roles in software engineering, sales, and marketing emerged, reflecting a shift toward high-value work. According to CEO Arvind Krishna, AI-driven automation allowed IBM to invest more in areas requiring human expertise, ultimately increasing the company’s total employment.
This approach highlights a broader trend: automation handles repetitive tasks, freeing staff to focus on strategic and innovative projects. Companies like Google and Spotify follow a similar path, using AI to streamline operations while expanding roles that require a personal touch.
IBM’s AskHR processed over 11.5 million interactions in a single year, raising customer satisfaction dramatically—its net promoter score jumped from -35 to +74. Yet, 6% of requests still needed human intervention, proving that while AI enhances efficiency, it cannot fully replace human empathy and nuanced understanding.
Businesses can take practical lessons from IBM’s experience:
– Use AI to automate repetitive administrative work, reducing operational costs and boosting efficiency.
– Reinvest savings into high-skill roles focused on innovation, customer experience, and strategic growth.
– Combine AI-driven platforms for routine inquiries with human support for complex or sensitive issues, ensuring a better customer experience.
The key takeaway: AI can be a catalyst for job creation and business growth when paired thoughtfully with human talent, allowing companies to adapt quickly and maintain a competitive edge as technology evolves.
