IBM Replaces 200 HR Staff with AI Agents

In a bold move signaling the accelerating role of artificial intelligence in enterprise operations, IBM has replaced 200 HR professionals with AI-powered agents as part of its ongoing digital transformation. Confirmed by CEO Arvind Krishna in May 2025, the decision reflects IBM’s strategy to automate routine, process-driven HR tasks while reallocating talent toward high-growth functions like programming and sales.

At the core of this shift is IBM’s AskHR platform, powered by natural language processing and robotic process automation. AskHR now automates 94% of HR queries, handling tasks such as payroll, job transfers, and vacation requests. CTO Ji-eun Lee emphasized the speed and efficiency gains, noting significant improvements in turnaround times and document management.

While IBM’s global headcount remains stable at 270,000, the AI-driven cuts enable investment in technical and client-facing roles. The launch of Watsonx Orchestrate—a no-code platform offering over 150 AI models—further anchors IBM’s ambitions to lead in enterprise AI solutions.

This development is part of a broader industry trend, as firms like Microsoft, Amazon, and Klarna restructure to embed AI into workflows. However, IBM’s 2023 layoffs revealed the limits of fully replacing human judgment, prompting this more targeted reduction.

Internally, the shift has stirred concern. Developers and HR experts warn that while automation excels at repetitive tasks, it struggles with nuance—raising questions about long-term organizational cohesion. IBM’s Chief HR Officer Nickle LaMoreaux maintains that AI complements rather than replaces human expertise, freeing HR teams to focus on strategy, engagement, and talent development.

Financially, the strategy aligns with IBM’s $6 billion generative AI push and recent stock market confidence. Yet the lack of transparency around severance and support measures leaves gaps in public trust.

Ultimately, IBM’s pivot represents a hybrid model: AI handles the transactional, humans manage the relational. For IBM and the broader industry, the challenge lies in achieving this balance without sacrificing innovation, workforce stability, or ethical responsibility.