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Reading: IBM Used AI to Replace Workers But Ended Up Creating More Jobs
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IBM Used AI to Replace Workers But Ended Up Creating More Jobs

Syed Mehmood
Last updated: October 23, 2025 12:37 pm
By
Syed Mehmood
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According to reports, IBM’s AI tools took over a huge chunk of back-office work, especially in its human resources department. Tasks like handling employee requests, vacation approvals, and payroll queries are now being done by an internal AI chatbot called AskHR — and it’s so efficient that it replaced hundreds of HR staff almost overnight.

But instead of shrinking, IBM’s workforce actually grew. CEO Arvind Krishna revealed that while AI handled repetitive work, the company needed more humans for roles that machines can’t fill — including software engineers, sales experts, and creative strategists. “We used AI to boost productivity, not just to fire people,” Krishna said, adding that IBM’s total employee count is now higher than before the layoffs.

This unexpected twist has become known in tech circles as “the AI hiring paradox” — companies are automating jobs, yet creating new ones in the process. By freeing up funds and time, IBM reinvested in roles that demand human skills like innovation, problem-solving, and communication — the very areas AI still struggles with.

Analysts say IBM’s move shows how automation can reshape, rather than destroy, the job market. Instead of a world where “AI takes over everything,” the shift suggests a future where AI handles the boring stuff — and people focus on creativity and strategy.

For countries like Pakistan, this change could be an opportunity. As AI adoption grows, global firms might look for skilled developers, analysts, and engineers in emerging markets. If local professionals can upskill in AI tools, coding, and data science, Pakistan could benefit from the next wave of global tech hiring.

Still, the story is a reminder that automation comes with growing pains. Thousands lost their jobs before new ones appeared — proof that the AI era rewards those who adapt fast.

IBM’s AI experiment might have started as a cost-cutting move, but it’s ending as something bigger: a glimpse of how humans and machines might work together in the future — not in competition, but in collaboration.

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