IBM CEO Arvind Krishna recently revealed that the company has leveraged artificial intelligence — specifically AI agents — to automate tasks previously handled by hundreds of HR professionals who have been replaced. The shift has allowed IBM to redirect resources toward hiring in software development, sales, and marketing.
Krishna’s remarks came as organizations across industries are assessing how AI technologies are influencing workforce structures and human capital strategies. AI agents — autonomous tools capable of executing tasks such as spreadsheet analysis, research, and email drafting — are beginning to play a more central role in enterprise operations.
Although broad-based layoffs due to AI have not yet materialized across the economy, many business leaders are rethinking headcount strategies and pausing hiring in roles deemed vulnerable to automation. The IT sector, in particular, has seen a contraction in workforce numbers as AI adoption intensifies.
SHRM’s recently released Jobs at Risk data brief found that over 19 million jobs face high or very high risk of displacement due to automation. A total of 12.6% of U.S. jobs face high or very high automation displacement risk, confirming the pressing need for reskilling initiatives tailored to vulnerable employee populations, according to the data brief. The share of employment facing high or very high automation displacement risk reached up to nearly 20% in business and financial operations, including HR.
At IBM, AI is leading to realignment, rather than net job loss. “Our total employment has actually gone up,” Krishna told The Wall Street Journal. “What [AI] does is give you more investment to put into other areas.” These areas include roles that demand complex problem-solving, interpersonal interactions, and customer-facing responsibilities — functions Krishna referred to as requiring “critical thinking” rather than repetitive or process-based work.
IBM did not specify when the job reductions occurred. However, in 2023, Krishna indicated that hiring would be paused or slowed for roles that could be fully automated. He projected that up to 30% of certain job functions at the company could ultimately be replaced by AI.
Earlier this year, IBM chief technology officer Ji-eun Lee reported that its AskHR AI agent had automated 94% of routine HR inquiries, such as vacation requests and payroll questions. Similarly, an AskIT agent reduced internal IT service interactions by 70%, underscoring AI’s potential for transforming service delivery.
IBM’s transformation into an AI-first organization mirrors moves by other tech leaders such as Alphabet and Microsoft, which have both reduced headcount while increasing investments in AI innovation.
‘Not the End of HR’
With over 270,000 employees at IBM overall, the relatively small number of people in HR who were affected must be put in context and probably means they were engaged in primarily repetitive work, said Nichol Bradford, executive in residence for AI + HI at SHRM.
“I’m guessing that IBM was able to clean up a lot of the rote tasks people do,” she said. “It doesn’t mean that it’s not a directional signal of change, but it is not the end of HR.”
Bradford has repeatedly said experts believe that AI will reduce the amount of specialization in HR, reversing a trend and resulting in more HR practitioners becoming high-level generalists.
“Software will do a lot of the things that specialists do today,” she said. “HR will tell you that they haven’t had time to do the strategic leadership coaching or career development or other things on the wish list that get pushed back because of day-to-day tasks.”
Bradford said that while AI is better at tasks, humans are still better equipped to be strategic partners to the business and help unlock people’s true potential.
“The survival skills of the future are adaptability and creative ideation,” she said. “And the leadership skills of the future are the ability to empower change and learning. If you focus there, it doesn’t matter what the machines can do.”
The Impact on HR
For HR professionals, IBM’s strategy underscores a pivotal moment: the need to balance AI with talent development, focus on workforce agility, and align roles with strategic business priorities. As AI reshapes operational processes, HR’s role in guiding organizational change and workforce planning is more critical than ever.
Bradford said that the way for HR to prove its value to the organization will be through acting as a strategic business partner. HR will also help lead and manage the transition into becoming an AI organization.
“Many organizations have been focused on efficiency, but studies show that just dropping AI in without training or changing the roles and workflows won’t be successful,” she said. “HR can play a vital role partnering with managers and business leaders to conduct task and role analysis, not just to revamp jobs but to look at how the work flows within the organization. If HR can do that, they will have a valued job.”
Bradford said that HR could also be responsible for the ethical use of AI. “That’s because the employee life cycle is tended by HR,” she said. “HR will have to understand and lean into advising the organization, answering employee questions and concerns, and motivating employees during the transition.”
HR could also take charge of AI agent management.
“We don’t know yet, but will there be an IT person in HR, or an HR person in IT?” she asked. “Someone will have to understand how AI agents are being managed as they interact with other agents and employees.”
The AI + HI = ROI Approach
With industries and occupations increasingly affected by rapid AI advancements, SHRM is urging organizations to adopt its AI + HI = ROI strategy, combining artificial intelligence with human intelligence to yield return on investment and build a resilient and adaptive 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. “While automation has the potential to drive efficiency, businesses must pair it with human ingenuity to unlock true value. Our AI + HI = ROI strategy provides a road map for HR professionals to balance technology adoption with human capital investment to secure long-term organizational success.”
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.
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