IBM’s CEO Arvind Krishna has stated that replacing human resources (HR) staff with artificial intelligence (AI) tools has not led to job losses overall—in fact, it has enabled the company to expand hiring in more strategic and revenue-generating roles such as programming and sales.

Speaking to The Wall Street Journal, Krishna explained that IBM’s internal use of AI and automation allowed it to restructure certain enterprise functions, starting with HR. By deploying AI bots capable of analysing data, conducting research and generating routine communications, the company reduced its reliance on traditional HR personnel—eliminating a few hundred roles. However, the savings and efficiencies gained were quickly redirected to recruit new talent in areas seen as essential to IBM’s future.

“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up,” Krishna said. “Because what it does is it gives you more investment to put into other areas.”

Those areas include software engineering, sales and marketing—what Krishna described as “critical thinking” roles that require human interaction, creativity, and decision-making. These are domains, he added, that demand people “to do things that face up or against other humans, as opposed to just doing rote process work.”

This shift marks a significant change in how HR functions are being viewed and structured at large enterprises. Rather than being simply an administrative centre, HR is increasingly expected to evolve into a strategic enabler, leveraging technology while focusing on human-centric issues like talent development, workforce planning and employee experience.

IBM has not disclosed the exact timeline over which these HR job reductions occurred, but the transformation highlights a broader trend: organisations are turning to automation to streamline operational tasks in HR, while redeploying resources to functions that directly impact innovation and growth.

The company’s internal AI agents now handle a range of HR-related tasks—from screening CVs and sending follow-up communications to analysing workforce data. This, according to Krishna, has freed up the company to pursue a more agile and responsive recruitment strategy, particularly in technical and client-facing roles.

The implications of IBM’s model extend beyond its own workforce. For the HR profession as a whole, the shift signals a new phase in which automation is not just a threat, but a catalyst for transformation. Routine HR tasks such as payroll, compliance reporting, and performance tracking are increasingly being automated, allowing HR professionals to focus on strategic responsibilities like talent engagement, leadership development and organisational culture.

However, such transitions are not without risk. As firms lean more heavily on AI and automation, questions remain around the ethics of displacement, the transparency of AI decision-making, and how to reskill HR professionals for a more strategic role. IBM’s approach appears to bet on the idea that while automation may reduce headcount in some support roles, it can create opportunities elsewhere—if managed thoughtfully.

This isn’t the first time Krishna has spoken about AI’s ability to reduce operational costs while opening up new growth areas. Earlier this year, he said that as the cost of AI continues to drop, its use will likely “explode,” driving demand for the technology across sectors. “We will find that the usage will explode as costs come down,” he told Bloomberg Television in February.

Despite these internal gains, Krishna remains cautious about external pressures, such as trade policy. Speaking about the impact of former President Donald Trump’s tariffs, Krishna said the effect on IBM had so far been limited because most of its high-end systems, including mainframes and quantum computers, are built domestically. Still, he warned that if tariffs lead to reduced discretionary spending, particularly in the consulting space, IBM could be forced to make tougher decisions.

“If the impact is within 3 to 4%, you actually can grit and manage through it,” Krishna said. “If the impact is going to be more like 10%, then that requires a lot more hardheaded management decisions.”

Krishna’s comments come amid wider debates about how AI will reshape workforces globally. His perspective—that automation in HR can be a springboard rather than a setback—offers a noteworthy case study for organisations contemplating similar shifts. As more firms integrate AI into their talent functions, the IBM example may serve as both a blueprint and a warning: automate wisely, reinvest strategically, and ensure people remain at the heart of workforce transformation.