IBM’s strategic move to harness artificial intelligence is reshaping its HR landscape, as revealed by CEO Arvind Krishna. The company has integrated AI agents to automate tasks that were once the domain of hundreds of HR professionals, thereby reallocating resources to focus on software development, sales, and marketing. This shift aligns with a broader industry trend where AI technologies are increasingly influencing workforce structures and human capital strategies.
AI agents, tools designed to perform tasks like spreadsheet analysis, research, and email drafting, are becoming central to enterprise operations. While widespread layoffs due to AI haven’t become prevalent, many organizations are reconsidering headcount strategies, especially in roles susceptible to automation. The IT sector, in particular, has seen a reduction in workforce numbers as AI adoption gains momentum.
SHRM’s Jobs at Risk data brief highlights that over 19 million jobs face high or very high risk of displacement due to automation. In the U.S., 12.6% of jobs are at risk, underlining the urgent need for reskilling initiatives. Notably, nearly 20% of roles in business and financial operations, including HR, face high automation displacement risk.
At IBM, the adoption of AI has led to a realignment rather than a net job loss. “Our total employment has actually gone up,” Krishna stated, emphasizing that AI enables more investment in areas requiring complex problem-solving and interpersonal interactions. IBM’s approach mirrors those of tech giants like Alphabet and Microsoft, which have also reduced headcounts while boosting AI investments.
IBM’s AskHR AI agent has automated 94% of routine HR inquiries, such as vacation requests and payroll questions, demonstrating AI’s potential to transform service delivery. Similarly, the AskIT agent has reduced internal IT service interactions by 70%.
According to Nichol Bradford, executive in residence for AI + HI at SHRM, the reduction of HR roles at IBM should be seen in context. “It doesn’t mean that it’s not a directional signal of change, but it is not the end of HR,” Bradford stated. Experts believe AI will reduce specialization in HR, shifting towards more high-level generalists.
Bradford emphasizes the continued importance of human strategic partnership in business, helping unlock human potential. “The survival skills of the future are adaptability and creative ideation,” she noted. HR’s role is critical in balancing AI with talent development, focusing on workforce agility, and aligning roles with strategic business priorities.
Bradford also highlights HR’s potential role in managing the ethical use of AI. “HR will have to understand and lean into advising the organization, answering employee questions and concerns, and motivating employees during the transition,” she said.
As industries adapt to AI advancements, SHRM advocates for the AI + HI = ROI strategy, combining artificial intelligence with human intelligence to ensure a resilient workforce. “Automation is no longer a hypothetical challenge; it is a present reality requiring thoughtful, strategic action from organizations,” said Alex Alonso, Ph.D., SHRM-SCP, chief data and analytics officer at SHRM.
Note: This article is inspired by content from https://www.shrm.org/topics-tools/flagships/ai-hi/ibm-embraces-ai–reduces-hr-roles. It has been rephrased for originality. Images are credited to the original source.