IBM Bets Big on AI While Cutting Thousands of Jobs
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IBM's stock price has surged 19% this year, nearing its all-time high, as it focuses more on AI products and services.
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IBM's CEO has said thousands of "back-office" roles like HR could be replaced by AI at the company. IBM cut HR staff from 700 to 50 using AI.
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IBM is laying off thousands of workers partly due to AI, while hiring more in high-demand areas like AI and cloud.
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IBM has over 50 years of AI research and launched an enterprise AI platform, Watsonx, in 2022. Over 75% of its chip design is done by AI.
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Analysts see potential for IBM's AI business to be worth billions in a few years, but question if it will cannibalize other IBM revenue streams.