AI at IBM is led by Joanne Wright (Senior Vice President, Transformation and Operations); Matt Lyteson (CIO and Vice President, Technology Platforms Transformation); Radha Iyengar Plumb (Vice President, AI-First Transformation). Ownership of AI on the org chart: SVP Transformation and Operations Joanne Wright, under the CFO; CEO chaired the steering committee.

What AI platform does IBM use?

IBM builds its internal AI on its own software: the enterprise AI platform rests on watsonx Orchestrate, watsonx.data and watsonx.governance (Matt Lyteson, Jan 2026), and IBM's CIO organization runs on Red Hat OpenShift in IBM Cloud.

Which AI models does IBM use?

IBM's Bob coding agent orchestrates Anthropic Claude, Mistral and IBM Granite models, optimized for cost and performance (Jan 2026); IBM has not said which models power AskHR, AskIT or AskIBM.

How many IBM employees use AI?

More than 80,000 IBM employees used Bob in Apr 2026, AskIT serves about 270,000 employees in more than 40 languages, and AskHR handled more than 16 million messages in 2025.

How far has AI spread at IBM?

IBM has reported one business return it credits to AI alone, which places it in Piloting: Arvind Krishna told the Wall Street Journal in May 2025 that AI agents had replaced the work of a couple hundred HR staff. IBM's other published gains are not credited to AI alone: its client zero case study (Jan 2026) credits the procurement hours saved and the logistics cost cut to data, AI and automation together and lists the IT support cost reduction beside automated tasks and AI agents, and the more than $5.5 billion of productivity savings James Kavanaugh cited on Oct 21, 2026 blends AI with automation, process simplification and other cost actions. On rollout, IBM said on Apr 28, 2026 that more than 80,000 of its employees use the Bob coding agent, and Joanne Wright, SVP of Transformation and Operations, runs the client zero program on IBM's watsonx platform. IBM falls short of Scaling because it reports no return credited to AI alone outside HR, such as for Bob in software engineering, and no firm-level figure it credits to AI alone.

Verified Oct 31, 2026

IBM

Piloting

Technology
264,300 employees
Own watsonx stack
80,000+ staff on Bob
AI agents replaced work of a couple hundred HR staff (May 2025)

IBM deploys AI on itself as client zero: watsonx agents handle HR and IT questions for about 270,000 employees, and more than 80,000 staff used Bob, IBM's coding agent on Claude, Mistral and Granite models, in Apr 2026. Joanne Wright, SVP of Transformation and Operations, runs the program, and CEO Arvind Krishna chaired its steering committee. IBM credits AI alone with one return, AI agents replacing the work of a couple hundred HR staff (May 2025); its $5.5 billion-plus productivity savings (Oct 2026) blend AI with automation and process redesign.

ibm.com

Their approach to AI

The platform: IBM builds its internal AI on its own software: the enterprise AI platform rests on watsonx Orchestrate, watsonx.data and watsonx.governance (Matt Lyteson, Jan 2026), and IBM's CIO organization runs on Red Hat OpenShift in IBM Cloud.
The models: IBM's Bob coding agent orchestrates Anthropic Claude, Mistral and IBM Granite models, optimized for cost and performance (Jan 2026); IBM has not said which models power AskHR, AskIT or AskIBM.
The reach: More than 80,000 IBM employees used Bob in Apr 2026, AskIT serves about 270,000 employees in more than 40 languages, and AskHR handled more than 16 million messages in 2025.
The catch: IBM credits AI alone with one return, the work of a couple hundred HR staff that AI agents replaced (May 2025); its productivity savings, more than $5.5 billion by Oct 2026, and its IT support, procurement and logistics gains blend AI with automation and process changes, and IBM does not say how much AI contributed or what it spends on AI.

Snapshot

Employees: 264,300; Dec 31, 2025; about 286,800 with partly owned units and complementary staff (2025 Annual Report)
Technology budget: Not disclosed; R&D expense was $8.3B in 2025, up 11%, driven mainly by AI, hybrid cloud and quantum
AI/ML headcount: Not disclosed; Client zero governance ran on 13 staff (Futurum, Aug 2026)
Who owns AI: Joanne Wright, SVP Transformation and Operations; Reports to CFO James Kavanaugh; Arvind Krishna chaired the biweekly steering committee
Platform: Built on IBM's own watsonx stack; AskHR, AskIT, AskSales, AskIBM (beta), Bob, IBM Consulting Advantage
Models: Claude, Mistral, Granite; Orchestrated by Bob for cost and performance (Jan 2026); models behind the Ask agents not disclosed
Reach: 80,000+ on Bob; Apr 2026; AskIT serves about 270,000 employees in 40+ languages
Use cases: 155+ designed; Jan 2026; more than 100 of nearly 400 analyzed workflows rebuilt by Mar 2026

Key findings

IBM set a goal in 2023 of $2 billion in annual productivity savings by the end of 2024, reached $3.5 billion exiting 2024 and $4.5 billion exiting 2025, and CFO James Kavanaugh said on Oct 21, 2026 that IBM is now north of $5.5 billion; IBM credits AI together with automation and process simplification and does not publish AI's share.
AskHR handled more than 16 million employee messages in 2025 and resolves 94% of common HR inquiries without a person, and Arvind Krishna told the Wall Street Journal in May 2025 that AI agents had replaced the work of a couple hundred HR staff while IBM hired more programmers and salespeople, the only return IBM has credited to AI alone.
Bob, IBM's coding agent, launched inside IBM in Jun 2025 with 100 developers and reached more than 80,000 IBM employees by its general release on Apr 28, 2026, routing work across Anthropic Claude, Mistral and IBM Granite models; surveyed users self-reported an average 45% productivity gain.
Joanne Wright, IBM's SVP of Transformation and Operations since Dec 2022, leads the client zero program across the CIO organization, the Chief Data Office, procurement and operations and reports to CFO James Kavanaugh, while Arvind Krishna chaired a biweekly steering committee supported by 13 staff (Futurum, Aug 2026).
IBM's CHRO Nickle LaMoreaux said in Feb 2026 that IBM will triple U.S. entry-level hiring in 2026 with jobs rewritten around AI, after Arvind Krishna slowed back-office hiring in May 2023 and IBM cut a low single-digit percentage of its global workforce in the fourth quarter of 2025.

Where IBM sits

Stage: Piloting
IBM has reported one business return it credits to AI alone, which places it in Piloting: Arvind Krishna told the Wall Street Journal in May 2025 that AI agents had replaced the work of a couple hundred HR staff. IBM's other published gains are not credited to AI alone: its client zero case study (Jan 2026) credits the procurement hours saved and the logistics cost cut to data, AI and automation together and lists the IT support cost reduction beside automated tasks and AI agents, and the more than $5.5 billion of productivity savings James Kavanaugh cited on Oct 21, 2026 blends AI with automation, process simplification and other cost actions. On rollout, IBM said on Apr 28, 2026 that more than 80,000 of its employees use the Bob coding agent, and Joanne Wright, SVP of Transformation and Operations, runs the client zero program on IBM's watsonx platform. IBM falls short of Scaling because it reports no return credited to AI alone outside HR, such as for Bob in software engineering, and no firm-level figure it credits to AI alone.
How the stages are defined
Ownership: SVP Transformation and Operations Joanne Wright, under the CFO; CEO chaired the steering committee
Platform: Built: Own watsonx stack: Ask agents, AskIBM and Bob
Models: Claude, Mistral and Granite in Bob; others not disclosed
Hosting: IBM Cloud: Red Hat OpenShift on IBM Cloud VPC, GPU-capable; where Bob's Claude models run is not disclosed
Reach: 80,000+ on Bob (Apr 2026); AskIT for about 270,000

How they deploy

IBM as its own first client

IBM calls its internal AI program client zero: IBM applies its own software and consulting method to its operations before selling them, and IBM's 2025 Form 10-K says IBM is increasingly applying AI to its own internal operations. The sequence Joanne Wright's program follows, per an IBM-commissioned Futurum study (Aug 2026), is to eliminate complexity, simplify the workflow and only then automate, so AI lands on redesigned processes.

Savings fund the growth plan

IBM treats productivity from AI and automation as a funding source. James Kavanaugh said on Oct 21, 2026 that about a third of IBM's gross productivity protects margins and about two-thirds is reinvested, and IBM's Jan 2026 remarks said the savings help pay for innovation and acquisitions such as HashiCorp and Confluent while margins expand.

Agents as the front door

IBM moved employee support from tickets to agents: AskHR consolidated about 25 HR bots into one interface, AskIT was built in under 100 days in 2023 using AskHR's frameworks, and AskHR became the digital front door for all HR transactions in 2025. IBM has spread the same pattern to AskSales, AskQ2C, AskEPM and AskSustainability, and AskIBM, in beta in Jun 2026, is meant to sit above them as one entry point.

Several models, matched to cost

IBM's Bob orchestrates frontier models such as Anthropic Claude and Mistral alongside IBM Granite small language models and custom models, all optimized for cost and performance, according to IBM's Jan 2026 remarks. IBM Consulting Advantage, launched in Jan 2024, lets IBM consultants switch between IBM and third-party generative AI models.

Redesign workflows, then jobs

IBM had analyzed nearly 400 workflows and rebuilt more than 100 by Mar 2026, Mohamad Ali wrote, up from AI embedded in more than 70 workflows in Jul 2025. Nickle LaMoreaux said in Feb 2026 that IBM rewrote entry-level jobs so that junior software engineers spend less time on routine coding and more with customers, and junior HR staff step in when chatbots fall short, and Arvind Krishna said in May 2026 that IBM's hiring is shifting from clerical and back-office roles toward engineering, sales and digital roles.

Deployment model: IBM runs internal AI as a central program with delivery in each function. Joanne Wright's Transformation and Operations organization, which includes the CIO organization, the Chief Data Office, procurement and operations, builds and runs the enterprise AI platform and the Ask agents; IBM Consulting's Client Zero Center of Competence supplies the method and the program's operational lead; and Productivity Catalysts embedded in business functions drive workflow redesign (Futurum, Aug 2026). IBM Software builds tools such as Bob, which IBM's own developers used before its release. Employees who want to build agents must earn an AI license to drive, which Matt Lyteson said cut provisioning from a two-week review to about five or six minutes (Jan 2026).
Model providers: IBM's Bob orchestrates Anthropic Claude, Mistral open models, IBM Granite small language models and custom models, routing each task for cost and performance (Jan 2026). IBM's Oct 7, 2025 partnership with Anthropic integrates Claude into select internal and external IBM development tools, starting with the IDE that became Bob, which more than 6,000 IBM employees were then using. IBM Consulting Advantage lets consultants switch between IBM and third-party generative AI models (Jan 2024). IBM has not named the models behind AskHR, AskIT or AskIBM, which IBM says are built on watsonx.
Data and infrastructure: IBM's CIO organization began building a hybrid cloud platform on Red Hat OpenShift on IBM Cloud in 2019 and moved it to IBM Cloud Virtual Servers for VPC in 2023, a GPU-capable architecture IBM says supports AI workloads; watsonx.data is the core of the CIO organization's data architecture, supporting lakehouse analytics and vector storage for AI applications, AskIBM and AskIT among them (IBM case study, updated Oct 2026). IBM consolidated onto strategic platforms such as SAP, Salesforce and Adobe while eliminating thousands of third-party applications, and AskHR completes transactions such as transfers and promotions without users entering SAP SuccessFactors (Futurum, Aug 2026). IBM has not said where the Claude models in Bob run.

Platforms and internal tools

AskHR
AskHR is IBM's HR agent, built with IBM's own assistant tools on watsonx, that consolidated about 25 earlier HR bots after an HR overhaul IBM dates to 2016; shortly after AskHR launched, IBM told its 21,000 first-line managers that dedicated HR business partner support would end. In 2025 AskHR became the digital front door for all HR transactions, coordinating multiple agents, and handled more than 16 million user messages, about 51 per IBMer.
Users
All employees; more than 16 million messages in 2025
Source
AskIT2023
AskIT is IBM's IT support agent, built in under 100 days in 2023 from a 90-day minimum viable product for 12,000 users, and AskIT now resolves 86% of issues without a person (Jul 2026). AskIT covers about 270,000 employees in more than 40 languages with 815 trained intents, according to the IBM-commissioned Futurum study (Aug 2026).
Users
About 270,000 employees (Aug 2026)
Source
AskIBMBeta by Jun 2026
AskIBM is a top-layer enterprise agent built on watsonx that IBM intends as one entry point to every domain assistant and agent; a beta put AskIBM in the hands of employees and partners and drew peak demand across IBM's watsonx platform (Jun 2026).
Source
IBM BobJun 2025 inside IBM; generally available Apr 28, 2026
Bob is IBM's AI software development agent for planning, coding, modernization and security work; Bob launched inside IBM in Jun 2025 with 100 developers, IBM said its entire developer workforce was using Bob by Apr 2026, and IBM now sells Bob as a SaaS product.
Users
80,000+ IBM employees (Apr 2026)
Models
Anthropic Claude, Mistral, IBM Granite, custom models
Source
Enterprise AI platformBy Jan 2026
IBM's internal enterprise AI platform, run by Matt Lyteson's CIO team, rests on watsonx Orchestrate, watsonx.data and watsonx.governance and lets licensed employees build agents; IBM monitors each agent for drift on watsonx.governance and ties AI costs to use cases through technology business management (Jan 2026).
Source
IBM Consulting AdvantageJan 2024
IBM Consulting Advantage is IBM Consulting's internal AI delivery and agent platform; at launch it gave 160,000 IBM consultants assistants built on watsonx and other models, and IBM's consultants worked alongside more than 3,000 digital assistants and agents by Mar 2026.
Users
160,000 consultants with access (Jan 2024)
Source
AskSales
AskSales is a generative AI sales assistant that IBM's Transformation and Operations team co-developed with sellers and product developers to answer questions, retrieve account insights and draft outreach, after IBM's sales tools had grown to more than 20; the AskSales Sales Assistant answered more than 250,000 seller questions in 2025.
Source

Vendors and partners

AnthropicOct 2025
Claude models in Bob and select IBM development tools · IBM and Anthropic announced the partnership on Oct 7, 2025, when more than 6,000 IBM employees were using the IDE that became Bob.
Mistral AIBy Jan 2026
Open models orchestrated in Bob · IBM's Jan 2026 remarks and Apr 2026 Bob release name Mistral models among those Bob draws on.
SAP
ERP and HR systems of record IBM consolidated onto; AskHR transacts in SAP SuccessFactors · The IBM-commissioned Futurum study (Aug 2026) says AskHR lets HR staff transfer or promote an employee without opening SAP SuccessFactors.

Leadership

AI, data and platform leaders

Joanne Wright

Senior Vice President, Transformation and Operations

Joanne Wright has spent her career at IBM in procurement, manufacturing, supply chain, real estate, client support and operations, and became SVP of Transformation and Operations on Dec 1, 2022, reporting to James Kavanaugh. Wright leads IBM's operations, procurement, CIO, Chief Data and Analytics Office and real estate organizations and the client zero program, which IBM credits with $4.5 billion in savings.

Matt Lyteson

CIO and Vice President, Technology Platforms Transformation

Matt Lyteson oversees the AI-driven platforms behind productivity and IT operations at IBM, including AskIT and AskIBM, after leadership roles at IBM, Red Hat, HP Enterprise Services and EDS. Lyteson's team introduced the AI license to drive that vets IBM employees before they can build agents (Jan 2026).

Radha Iyengar Plumb

Vice President, AI-First Transformation

Unconfirmed

Radha Iyengar Plumb joined IBM on Jul 14, 2025 to lead its Next-Generation Transformation Strategy, putting AI to work inside IBM as client zero before it reaches clients, after leading the U.S. Defense Department's Chief Digital and Artificial Intelligence Office until Jan 2025. IBM has not published Plumb's current title or reporting line.

Neel Sundaresan

General Manager, Automation and AI, IBM Software

Neel Sundaresan leads the IBM Software unit that builds Bob, after serving as a vice president at Microsoft, where he started the AI for Code work that led to Microsoft's Copilot, and earlier as head of eBay Research. Sundaresan said on Oct 28, 2026 that Bob has about 170,000 users, roughly two-thirds of them business users.

Ashley AuBuchon-Arcand

Partner, IBM Consulting Client Zero Center of Competence

Ashley AuBuchon-Arcand served as the operational lead of IBM's client zero program, according to the IBM-commissioned Futurum study (Aug 2026), and argues that IBM must eliminate and simplify a process before automating it.

Executives

Arvind Krishna

Chairman, President and Chief Executive Officer

Arvind Krishna joined IBM in 1990, was director of IBM Research from 2015 to 2020 and led the Cloud and Cognitive Software unit from 2017, became CEO in Apr 2020 and was elected chairman in Dec 2020. Krishna chaired the biweekly Transformation Steering Committee that oversaw IBM's client zero program with the Executive Leadership Team (Futurum, Aug 2026).

James Kavanaugh

Senior Vice President, Finance and Operations, and Chief Financial Officer

James Kavanaugh joined IBM in 1996 from AT&T, was IBM's Controller from 2008 and SVP of Transformation and Operations from 2015, and became CFO on Jan 11, 2018. Kavanaugh sets IBM's productivity targets and reports the savings on earnings calls, and Joanne Wright reports to him.

Nickle LaMoreaux

Senior Vice President and Chief Human Resources Officer

Nickle LaMoreaux has been CHRO since Aug 2020 after more than 25 years at IBM that began with an internship, including roles as VP of HR for Cloud and Cognitive Software and VP of Total Rewards. LaMoreaux's HR function runs AskHR, and she said in Feb 2026 that IBM would triple U.S. entry-level hiring with jobs rewritten for AI.

Mohamad Ali

Senior Vice President, IBM Consulting

Mohamad Ali rejoined IBM as COO of IBM Consulting in 2023 and became its SVP on Jul 1, 2024, after serving as CEO of IDG and of Carbonite and as chief strategy officer at Hewlett Packard. Ali's unit runs IBM Consulting Advantage and the Client Zero Center of Competence, and Ali wrote in Mar 2026 that IBM had rebuilt more than 100 of nearly 400 analyzed workflows.

Dinesh Nirmal

Senior Vice President, Products, IBM Software

Dinesh Nirmal sets IBM Software's product and technology direction, including Bob, which IBM's own developers used before its general release, and spoke for IBM on the Oct 2025 partnership that brought Anthropic's Claude into IBM development tools.

AI org map

CEO-chaired steering committee; client zero run centrally by Transformation and Operations under the CFO, with Productivity Catalysts in each function

IBM's client zero program reports through finance: Joanne Wright, SVP of Transformation and Operations since Dec 2022, leads the CIO organization, the Chief Data Office, procurement and operations and reports to CFO James Kavanaugh. CEO Arvind Krishna chaired a biweekly Transformation Steering Committee with the Executive Leadership Team, supported by a Transformation Project Office and a Productivity Discovery Team, while Productivity Catalysts embedded in business functions carried out workflow redesign (Futurum, Aug 2026). IBM Consulting supplies the Client Zero Center of Competence, and IBM Software builds Bob.

IBM's internal AI work sits in three places: Joanne Wright's Transformation and Operations organization, which runs the CIO organization, the Chief Data Office, procurement and operations; IBM Consulting's Client Zero Center of Competence, which supplies the method; and IBM Software, which builds Bob and the watsonx products IBM uses first. IBM has not disclosed how many people build or run AI internally; the client zero governance layers ran on 13 staff, and Productivity Catalysts embedded in each function drive adoption (Futurum, Aug 2026).

Reporting lines

Chairman and CEO
Arvind Krishna
- Transformation Steering Committee
  Arvind Krishna, chair
  Met biweekly with the Executive Leadership Team to set client zero priorities and investment (Futurum, Aug 2026)
  - Transformation Project Office and Productivity Discovery Team
    Coordinate deployments and pick workflows to redesign; 13 staff in total with the steering committee
    - Productivity Catalysts
      Transformation leaders embedded in business functions, the fourth governance layer; line drawn from the layer order, not published
- Finance and Operations
  James Kavanaugh, SVP and CFO
  - Transformation and Operations
    Joanne Wright, SVP
    Operations, procurement, CIO, Chief Data and Analytics Office and real estate; line from the Dec 2022 announcement
    - CIO, Technology Platforms Transformation
      Matt Lyteson
      Enterprise AI platform, AskIT and AskIBM; the line to Joanne Wright is inferred from her remit over the CIO organization
    - Chief Data Office
      Current leader not confirmed
- Human Resources
  Nickle LaMoreaux, SVP and CHRO
  Runs AskHR; reporting line not published
- IBM Consulting
  Mohamad Ali, SVP
  Runs IBM Consulting Advantage; reporting line not published
  - Client Zero Center of Competence
    Ashley AuBuchon-Arcand, Partner
    Operational lead of the client zero program (Futurum, Aug 2026)
- IBM Software Products
  Dinesh Nirmal, SVP
  Reporting line not published
  - Automation and AI, IBM Software
    Neel Sundaresan, GM
    Builds Bob; reporting line inferred

IBM has not published an org chart for its internal AI program. The line from Joanne Wright to James Kavanaugh comes from IBM's Dec 1, 2022 announcement; Matt Lyteson's line to Wright is inferred from her remit over the CIO organization; and IBM has not said where Radha Iyengar Plumb, hired in Jul 2025 as VP of AI-first transformation, reports. No title on IBM's senior leadership list, checked Oct 31, 2026, mentions AI.

Where the AI workforce sits

Client zero governance: steering committee, project office and discovery team
Futurum, Aug 2026. IBM has not disclosed the size of the teams that build and run its internal AI.
13 staff
Transformation and Operations, including the CIO organization and Chief Data Office
Builds and runs the enterprise AI platform and the Ask agents.
Not disclosed
Productivity Catalysts in business functions
Embedded transformation leaders who drive workflow redesign and adoption.
Not disclosed
IBM Software teams building Bob and watsonx
Product teams whose tools IBM uses internally before release.
Not disclosed

Named people

Executive sponsors

Arvind Krishna
Chairman, President and CEO · Chaired the biweekly Transformation Steering Committee
James Kavanaugh
SVP, Finance and Operations, and CFO · Reports IBM's productivity savings each quarter

Transformation and Operations

Includes the CIO organization, the Chief Data Office, procurement, operations and real estate.

Joanne Wright
SVP, Transformation and Operations · Reports to James Kavanaugh
Matt Lyteson
CIO and VP, Technology Platforms Transformation · Runs the enterprise AI platform, AskIT and AskIBM

Client zero program

13 staff across the steering committee, project office and discovery team (Aug 2026)

Ashley AuBuchon-Arcand
Partner, IBM Consulting Client Zero Center of Competence · Operational lead of the program
Radha Iyengar Plumb
VP, AI-First Transformation (title as of Jul 2025)

Human resources

Nickle LaMoreaux
SVP and Chief Human Resources Officer · HR runs AskHR

Software development tools

Dinesh Nirmal
SVP, Products, IBM Software
Neel Sundaresan
GM, Automation and AI, IBM Software · Builds Bob

Consulting delivery

Mohamad Ali
SVP, IBM Consulting · Runs IBM Consulting Advantage

Use cases

IBM had designed more than 155 AI use cases for core functions by Jan 2026 and had rebuilt more than 100 of nearly 400 analyzed workflows by Mar 2026, across HR, IT support, finance, procurement, supply chain, sales, marketing, customer support, consulting delivery and software engineering. IBM's one published return credited to AI alone is in HR, where Arvind Krishna said in May 2025 that AI agents had replaced the work of a couple hundred staff. IBM credits its procurement hours saved and logistics cost cut to data, AI and automation together and lists its IT support cost reduction beside automated tasks and AI agents, with no AI share for any of them; IBM's finance planning claim of more than $200 million a year in business value does not say what it measures, and the $191 million customer support saving is Futurum's assessment in a study IBM commissioned. For the program as a whole, IBM reported $4.5 billion of annual run-rate productivity savings exiting 2025, and CFO James Kavanaugh put the figure north of $5.5 billion on Oct 21, 2026, credited to AI together with automation and process simplification, with no AI share published.

Use case	Area	Status	ROI
AskHR and HR agents AskHR is the digital front door for IBM's HR transactions, such as transfers, payroll and benefits; AskHR handled more than 16 million user messages in 2025 and resolves 94% of common inquiries without a person.	Human resources	In production	Work of a couple hundred HR staff replaced by AI agents, Arvind Krishna said (May 2025)Source
AskIT AskIT, built in under 100 days in 2023, handles IT support for about 270,000 IBM employees in more than 40 languages and resolves 86% of issues without a person. IBM's client zero case study (Jan 2026) lists an initial $18 million cost reduction, now yielding annual cost avoidance, under IT support beside automated routine IT tasks and AI agents, without saying how much came from AI.	IT support	In production
IBM Bob coding agent Bob routes IBM's software work across Claude, Mistral and Granite models; IBM's entire developer workforce used Bob by Apr 2026, and surveyed users self-reported an average 45% productivity gain.	Software engineering	In production
AI-driven planning, forecasting and reporting IBM's finance organization runs planning and reporting on IBM Planning Analytics and watsonx, including touchless AI forecasting that predicts about 140,000 data points a month with about 95% model accuracy.	Finance	In production
AskQ2C and AskEPM AskQ2C automates IBM's quote-to-cash collections, invoice processing and order tracking, and AskEPM supports IBM's planning, forecasting and financial analysis.	Finance	In production
Procurement agents and automation IBM's procurement team, which once searched more than 40 systems for supplier answers, saved about 26,000 hours a year with data, AI and automation, according to IBM's client zero case study (Jan 2026), and Matt Lyteson said in Jan 2026 that IBM is building agentic capabilities for procurement.	Procurement	In production
Supply chain and logistics IBM's supply chain organization applies data, AI and automation across more than 10 million shipments, 350,000 parts and demand from more than 170 countries; IBM said in Jan 2026 that logistics costs had fallen about 30% over three years since 2022, driven by the combined use of data, AI and automation tools.	Supply chain	In production
AI in IBM's own client support IBM's customer support organization uses watsonx Assistant, watsonx Orchestrate and Watson Discovery to handle support interactions and reduce escalations, according to the IBM-commissioned Futurum study.	Customer support	In production
AskSales AskSales gives IBM sellers one generative AI assistant to answer questions, retrieve account insights and draft personalized outreach; its Sales Assistant answered more than 250,000 seller questions in 2025.	Sales	In production
IBM Consulting Advantage IBM Consulting Advantage is the internal platform on which IBM consultants build agents for each engagement, and IBM's consultants worked alongside more than 3,000 digital assistants and agents by Mar 2026.	Consulting delivery	In production
Creative Assistant IBM's marketing team drafts content with Creative Assistant, built on watsonx; in its first year, 2025, more than 1,010 active users generated more than 7,000 asset drafts in 10 content formats.	Marketing	In production
Tax use cases IBM has deployed three AI use cases in tax, including invoice review that reached over 95% first-pass accuracy in tests across 18 of 19 invoice formats.	Tax	In production
Infrastructure operations with Concert, Turbonomic and Instana IBM runs its own Concert, Turbonomic and Instana software with Apptio for observability and automated resource optimization across its infrastructure, according to the IBM-commissioned Futurum study.	IT operations	In production
AskIBM AskIBM, built on watsonx, is meant to route IBM employees to every domain assistant and agent through one interface, and was in beta with employees and partners in Jun 2026.	Firmwide	Pilot

Adoption

IBM spread AI one function at a time: AskHR grew out of an HR overhaul IBM dates to 2016, AskIT went from a pilot for 12,000 users in 2023 to about 270,000 employees, IBM Consulting Advantage reached 160,000 consultants from Jan 2024, and Bob went from 100 developers in Jun 2025 to more than 6,000 IBM employees in Oct 2025, more than 20,000 in Jan 2026 and more than 80,000 in Apr 2026. IBM employees proposed about 15,000 AI agents in the 2025 IBM watsonx Challenge. IBM's own usage count is Bob's more than 80,000 IBM employees, reported on Apr 28, 2026; IBM has published no firmwide weekly or daily usage figure, and AskHR's more than 16 million messages in 2025 work out to about 51 per IBMer a year.

By the numbers

IBM employees using Bob: 80,000+; Apr 28, 2026, up from 100 developers at the internal launch in Jun 2025

Productivity savings, AI share not disclosed: $5.5B+; James Kavanaugh, Oct 21, 2026; $4.5B annual run rate exiting 2025; credited to AI, automation and process redesign together

Common HR inquiries AskHR resolves without a person: 94%; IBM, Jan 2026; AskHR handled more than 16 million messages in 2025

IT issues AskIT resolves without a person: 86%; IBM, Jul 2026; calls and chats fell from over 1 million a year to under 100,000 between 2021 and 2025

AI use cases designed for core functions: 155+; IBM client zero case study, Jan 2026

Employees: 264,300; Dec 31, 2025, IBM and wholly owned subsidiaries, down from 270,300 a year earlier

Rollout, first pilot to today

2016
IBM's HR overhaul reached what IBM calls an inflection point, starting the work that consolidated about 25 HR bots into AskHR.
IBM
2019
IBM's CIO organization began building a hybrid cloud platform on Red Hat OpenShift on IBM Cloud, the base for its later AI tools.
IBM
2023
IBM built AskIT in under 100 days, starting with a 90-day minimum viable product for 12,000 employees.
IBM
May 2023
Arvind Krishna told Bloomberg that IBM would suspend or slow back-office hiring and could see 30% of about 26,000 non-customer-facing roles replaced by AI and automation over five years.
Fortune
Jan 2024
IBM launched IBM Consulting Advantage, giving 160,000 consultants AI assistants built on watsonx and other IBM and third-party models.
CDO Magazine
Jan 2025
IBM said it exited 2024 with $3.5 billion of annual run-rate productivity savings.
4Q24 prepared remarks
May 2025
Arvind Krishna told the Wall Street Journal that AI agents had replaced the work of a couple hundred HR staff and that IBM had hired more programmers and salespeople.
Wall Street Journal
Jun 2025
IBM launched Bob inside the company with 100 developers.
IBM
Jul 2025
IBM said it was embedding AI across more than 70 workflows and raised its target to about $4.5 billion of annual run-rate savings by the end of 2025.
2Q25 prepared remarks
Oct 2025
IBM and Anthropic announced a partnership to bring Claude into IBM development tools, starting with the IDE that became Bob, then used by more than 6,000 IBM employees.
IBM
Jan 2026
IBM said it exited 2025 with $4.5 billion of annual run-rate productivity savings, against a $2 billion goal set in 2023, and more than 20,000 IBMers using Bob, and set a $5.5 billion run-rate target for the end of 2026.
4Q25 prepared remarks
Apr 2026
IBM said its entire developer workforce uses Bob and released Bob generally, with more than 80,000 IBM employees using it.
IBM
Oct 2026
James Kavanaugh said IBM had generated more than $5.5 billion of productivity, against a target of $5.5 billion of annual run-rate savings by the end of 2026.
Q3 2026 earnings call

Economics & controls

Spend and ROI

Technology and AI spending

IBM does not disclose an internal technology or AI budget. IBM's research and development expense rose 11.2% to about $8.3 billion in 2025, which IBM attributes mainly to investment in AI, hybrid cloud and quantum and to acquired businesses. Matt Lyteson said in Jan 2026 that IBM ties the cost of each AI use case to that use case through technology business management, and IBM has not published what it spends on models, compute or the Claude models in Bob.

Reported ROI

IBM set a goal in 2023 of $2 billion of annual productivity savings exiting 2024, reported $3.5 billion exiting 2024 and $4.5 billion exiting 2025, and expected another $1 billion in 2026; James Kavanaugh said on Oct 21, 2026 that IBM is now north of $5.5 billion. IBM attributes the savings to eliminating manual touchpoints, simplifying processes and applying data, automation and AI at scale, and does not separate AI's share. Kavanaugh said IBM drove 500 basis points of gross productivity in the third quarter of 2026, with about a third protecting margins and about two-thirds reinvested. IBM has reported no firm-level figure it credits to AI alone; the one return on record that IBM credits to AI alone is Arvind Krishna's May 2025 statement that AI agents replaced the work of a couple hundred HR staff, and IBM's client zero case study (Jan 2026) presents its IT support, procurement and logistics gains as results of data, AI and automation together.

Productivity markers

IBM says HR cut its operating budget by 40% over four years through overall transformation efforts, which include AskHR, and the IBM-commissioned Futurum study (Aug 2026) says IT modernization with Apptio, Concert, Turbonomic and Instana cut infrastructure costs by 30%, more than $600 million, and that AI-powered customer support generated about $191 million a year in operational savings, figures the study presents as Futurum's own assessment. IBM's finance case study claims more than $200 million a year in business value from AI-driven automation since 2023 (May 2025) without saying how business value is measured. IBM credits AI and automation with about 15.6% productivity savings in hardware supply chain costs (Jan 2026). Bob users surveyed by IBM self-reported an average 45% productivity gain, and developers on IBM's Instana team reported 70% less time on selected tasks, about 10 hours a week (Apr 2026).

Headcount

IBM had 264,300 employees at IBM and its wholly owned subsidiaries at Dec 31, 2025, down from 270,300 a year earlier. Arvind Krishna said in May 2023 that IBM would suspend or slow back-office hiring and told the Wall Street Journal in May 2025 that AI agents had replaced the work of a couple hundred HR staff while total employment rose; IBM took workforce rebalancing charges in the fourth quarter of 2025 for an action affecting a low single-digit percentage of its global workforce. Nickle LaMoreaux said in Feb 2026 that IBM will triple U.S. entry-level hiring in 2026, and Krishna said in May 2026 that hiring is shifting from clerical and back-office roles to engineering, sales and digital roles.

Governance and risk

CEO-chaired steering committee

IBM ran client zero under a four-layer governance model: a Transformation Steering Committee that Arvind Krishna chaired biweekly with the Executive Leadership Team, a Transformation Project Office, a Productivity Discovery Team that picks workflows to redesign, and Productivity Catalysts embedded in business functions, with 13 staff across the first three layers (Futurum, Aug 2026).

A license to build agents

IBM requires employees who build AI agents to earn an AI license to drive, which vets them on data privacy, security and back-end integration; Matt Lyteson said in Jan 2026 that provisioning then takes about five or six minutes instead of a two-week review. IBM monitors deployed agents for drift on watsonx.governance, collects user feedback and satisfaction scores, and applies corporate policy and AI ethics reviews as the outer limits.

AI Ethics Board

IBM's AI Ethics Board, overseen by a Policy Advisory Committee of senior leaders, reviews AI use cases against IBM's principles and regulation, and AI Ethics Focal Points in each business unit screen use cases first and escalate to the board when needed, according to IBM.

Disclosed risks

IBM's 2025 Form 10-K says IBM is increasingly applying AI to its own internal operations and warns that continuously transforming with AI may not yield the intended gains in speed, quality and productivity, that evolving AI regulation may affect results, and that wider use of AI may introduce new methods of attack.

Recent signals

Oct 28, 2026
Neel Sundaresan said at IBM TechXchange that Bob has about 170,000 users, roughly two-thirds of them business users rather than developers; IBM did not say how many are IBM employees.
IBM
Oct 21, 2026
James Kavanaugh said on IBM's third-quarter call that IBM has generated north of $5.5 billion of productivity and drove 500 basis points of gross productivity in the quarter, citing AI in software development and a redesign of general and administrative work.
Q3 2026 earnings call transcript
Aug 5, 2026
An IBM-commissioned Futurum study said client zero captured $4.5 billion in annualized productivity savings, more than double the original $2 billion target, under a steering committee Arvind Krishna chaired biweekly.
Futurum Group
Jul 22, 2026
James Kavanaugh said IBM's productivity actions, including AI in software development and a more effective sales and marketing organization, were running ahead of plan, and IBM expected 100 basis points of operating pre-tax margin expansion for 2026.
Q2 2026 earnings call transcript
Jul 16, 2026
IBM published case studies saying AskHR handled more than 16 million employee messages in 2025 and AskIT resolves 86% of IT issues without a person.
IBM
Jun 23, 2026
IBM described AskIBM, a top-layer enterprise agent built on watsonx, as in beta with employees and partners, and said its sales assistant answered more than 250,000 seller questions in 2025.
IBM
May 6, 2026
Arvind Krishna said at Think 2026 that IBM plans to triple entry-level hiring in 2026 and that hiring is shifting from clerical and back-office roles to engineering, sales and digital roles.
SiliconANGLE
Apr 28, 2026
IBM released Bob generally and said more than 80,000 IBM employees use it, up from 100 developers at the internal launch in Jun 2025, with surveyed users self-reporting a 45% average productivity gain.
IBM
Apr 22, 2026
Arvind Krishna said IBM's entire developer workforce uses Bob, and IBM said client zero had produced $4.5 billion of productivity savings since 2023, with another $1 billion expected in 2026.
1Q26 prepared remarks
Mar 24, 2026
Mohamad Ali wrote that IBM had analyzed nearly 400 workflows and rebuilt more than 100, and that IBM's consultants work alongside more than 3,000 digital assistants and agents.
IBM
Feb 13, 2026
Nickle LaMoreaux said IBM is tripling entry-level hiring, software developers included, with jobs rewritten so junior engineers spend less time on routine coding and more with customers.
Fortune
Jan 28, 2026
IBM said it exited 2025 with $4.5 billion of annual run-rate productivity savings against a $2 billion goal, set a $5.5 billion target for the end of 2026, and said more than 20,000 IBMers use Bob.
4Q25 prepared remarks
Jan 15, 2026
Matt Lyteson described IBM's AI license to drive for agent builders and AskIBM as the front door to every agent experience at IBM, on a platform of watsonx Orchestrate, watsonx.data and watsonx.governance.
Stack Overflow

Quick answers

How does IBM deploy AI?: IBM deploys AI on itself as client zero: watsonx agents handle HR and IT questions for about 270,000 employees, and more than 80,000 staff used Bob, IBM's coding agent on Claude, Mistral and Granite models, in Apr 2026. Joanne Wright, SVP of Transformation and Operations, runs the program, and CEO Arvind Krishna chaired its steering committee. IBM credits AI alone with one return, AI agents replacing the work of a couple hundred HR staff (May 2025); its $5.5 billion-plus productivity savings (Oct 2026) blend AI with automation and process redesign.
What does IBM use AI for?: IBM had designed more than 155 AI use cases for core functions by Jan 2026 and had rebuilt more than 100 of nearly 400 analyzed workflows by Mar 2026, across HR, IT support, finance, procurement, supply chain, sales, marketing, customer support, consulting delivery and software engineering. IBM's one published return credited to AI alone is in HR, where Arvind Krishna said in May 2025 that AI agents had replaced the work of a couple hundred staff. IBM credits its procurement hours saved and logistics cost cut to data, AI and automation together and lists its IT support cost reduction beside automated tasks and AI agents, with no AI share for any of them; IBM's finance planning claim of more than $200 million a year in business value does not say what it measures, and the $191 million customer support saving is Futurum's assessment in a study IBM commissioned. For the program as a whole, IBM reported $4.5 billion of annual run-rate productivity savings exiting 2025, and CFO James Kavanaugh put the figure north of $5.5 billion on Oct 21, 2026, credited to AI together with automation and process simplification, with no AI share published.
Who leads AI at IBM?: AI at IBM is led by Joanne Wright (Senior Vice President, Transformation and Operations); Matt Lyteson (CIO and Vice President, Technology Platforms Transformation); Radha Iyengar Plumb (Vice President, AI-First Transformation). Ownership of AI on the org chart: SVP Transformation and Operations Joanne Wright, under the CFO; CEO chaired the steering committee.
What AI platform does IBM use?: IBM builds its internal AI on its own software: the enterprise AI platform rests on watsonx Orchestrate, watsonx.data and watsonx.governance (Matt Lyteson, Jan 2026), and IBM's CIO organization runs on Red Hat OpenShift in IBM Cloud.
Which AI models does IBM use?: IBM's Bob coding agent orchestrates Anthropic Claude, Mistral and IBM Granite models, optimized for cost and performance (Jan 2026); IBM has not said which models power AskHR, AskIT or AskIBM.
How many IBM employees use AI?: More than 80,000 IBM employees used Bob in Apr 2026, AskIT serves about 270,000 employees in more than 40 languages, and AskHR handled more than 16 million messages in 2025.
How far has AI spread at IBM?: IBM has reported one business return it credits to AI alone, which places it in Piloting: Arvind Krishna told the Wall Street Journal in May 2025 that AI agents had replaced the work of a couple hundred HR staff. IBM's other published gains are not credited to AI alone: its client zero case study (Jan 2026) credits the procurement hours saved and the logistics cost cut to data, AI and automation together and lists the IT support cost reduction beside automated tasks and AI agents, and the more than $5.5 billion of productivity savings James Kavanaugh cited on Oct 21, 2026 blends AI with automation, process simplification and other cost actions. On rollout, IBM said on Apr 28, 2026 that more than 80,000 of its employees use the Bob coding agent, and Joanne Wright, SVP of Transformation and Operations, runs the client zero program on IBM's watsonx platform. IBM falls short of Scaling because it reports no return credited to AI alone outside HR, such as for Bob in software engineering, and no firm-level figure it credits to AI alone.

Open questions

How much of IBM's $4.5 billion run-rate savings exiting 2025, and of the more than $5.5 billion James Kavanaugh cited in Oct 2026, comes from AI rather than automation, process simplification, third-party spend cuts and workforce actions?
How much of the $18 million IT support cost reduction, the 26,000 procurement hours saved a year and the 30% logistics cost cut, which IBM reports with no separate AI share, comes from AI, and what are the procurement hours worth in cost or headcount?
What share of IBM's 264,300 employees use AI tools every week, given that IBM has published no firmwide usage figure?
Which models power AskHR, AskIT and AskIBM, and where do the Claude models in Bob run?
How many of the roughly 170,000 Bob users cited in Oct 2026 are IBM employees, and what return does Bob deliver beyond users' self-reported 45% productivity gain?
What does IBM spend internally on AI, including compute, model licenses and its Anthropic partnership?
What business return do IBM's deployed tools with no published figure deliver, such as Bob, AskSales, IBM Consulting Advantage, AskQ2C and AskEPM, and what cost saving will IBM itself report for AI in finance planning and customer support?
How much of HR's 40% operating budget cut over four years comes from AskHR rather than other changes?
How many roles has IBM eliminated, left unfilled or redeployed because of AI since the May 2023 hiring slowdown?
Who leads IBM's Chief Data Office today, and where does Radha Iyengar Plumb's AI-first transformation role report?
Does Arvind Krishna still chair a standing AI steering committee now that the savings target has been met, and when will AskIBM leave beta for all employees?

Sources

IBM

Filings and investor materials

Analysts

News

Data confidence

Confirmed: Stated in a primary or reputable public source.
Estimated: Derived or approximated from public reporting.
Unconfirmed: Reported, but not yet corroborated.

IBM profile · Enterprise AI diffusion report by Imagine · facts checked against their sources on Oct 31, 2026

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