In a surprising twist that defies common expectations about artificial intelligence, IBM’s journey with automation reveals how AI can both disrupt and expand the workforce simultaneously. In 2023, after laying off nearly 8,000 employees due to AI integration—mostly affecting human resources—the tech giant found itself hiring thousands of workers back, underscoring a powerful paradox in the future of work.
How AI Transformed IBM’s Workforce and Boosted Productivity
At the start of 2023, IBM took a bold step by introducing AI to automate repetitive and routine tasks across its support functions. The flagship initiative, AskHR, acted as an AI-powered assistant handling everyday duties like vacation requests, payroll, and employee documentation. This move aimed to automate roughly 30 percent of human resource tasks, improving efficiency and reducing costs.
The results were significant. IBM reported that 94 percent of routine HR tasks were now automated, resulting in a staggering $3.5 billion gain in productivity spread over 70+ business units. Yet, unlike what many predicted, the company’s total employment numbers didn’t decline permanently. In fact, they inched upward. IBM’s CEO, Arvind Krishna, told the Wall Street Journal, “While we’ve done a tremendous amount of work to leverage AI, our total employment has actually increased because it’s allowed us to invest more in other areas.”
This indicates that automation didn’t just cut costs—it unlocked new opportunities. IBM ramped up recruitment in roles demanding creativity, strategic thinking, and emotional intelligence: software engineers, sales professionals, marketing experts, and other innovation-driven positions. The human skills that AI can’t replicate became more valuable than ever.
Why AI Is Reshaping Jobs Rather Than Destroying Them
IBM’s story is a revealing case study on AI’s nuanced impact on the labor market. While many routine and repetitive jobs are diminishing due to automation, new careers are emerging focused on developing, managing, and applying AI solutions. This dual effect of AI reshapes occupations rather than outright eliminates them.
Similar patterns have been seen in companies like Duolingo and several customer service platforms, which initially tried to replace staff with AI chatbots but later found they had to hire specialists again to handle exceptions and provide personalized support. IBM’s experience confirms that success with AI depends heavily on reinvesting cost savings into growth areas that require human expertise.
Take AskHR, for example. By 2024, it had managed more than 11.5 million interactions, boosting customer satisfaction scores dramatically from -35 to +74. However, about 6 percent of questions still needed to be handled by human employees, reinforcing that some human skills—the ability to understand nuance and provide empathy—remain essential. This interplay between AI and human input exemplifies the future of hybrid work models.
“AI won’t replace human creativity and empathy—it will amplify our capabilities,” a Gartner report explains, highlighting the imperative for organizations to balance automation with human judgment.
Lessons from IBM’s AI Journey for the Future of Work
Looking ahead, IBM’s path offers important insights for other companies navigating AI’s rise. The World Economic Forum predicts that up to 92 million jobs worldwide could disappear by 2030 due to automation. Yet, new roles focusing on AI development, oversight, and human-centered innovation are blossoming.
Experts agree that simply cutting jobs is short-sighted. True adaptation requires companies to rethink employment strategies: continuous learning, reskilling programs, and nurturing human ingenuity alongside AI investment are critical. For workers, the message is clear—embracing lifelong learning and upgrading skills is essential to stay relevant in this rapidly evolving labor landscape.
In my own reporting experience, I observed a company attempt to replace their entire customer service team with chatbots. While the AI handled simple queries effectively, complex issues caused frustration and customer dissatisfaction. Ultimately, they rehired many staff members to restore the essential human connection—a reminder that technology is a tool, not a total substitute for human insight.
What Do You Think?
IBM’s AI story challenges us to rethink fears about automation and job loss. Instead, it invites a broader conversation about technology’s transformative potential to create new opportunities and elevate human roles. Have you seen AI reshape your workplace or industry in surprising ways? How do you balance automation and human skills?
Share your thoughts and experiences below—let’s explore together how AI is crafting the future of work.