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How IBM Saved $3.5 Billion in Productivity Gains with AI

The adoption of artificial intelligence is becoming a key milestone in how organisations evolve and enhance their competitiveness. IBM stands as a tangible example that can guide companies in leveraging AI to increase productivity and streamline internal processes, all while maintaining employee engagement and satisfaction.

Through its “Client Zero” initiative, launched in 2017 and accelerated in 2022, IBM began implementing AI to optimise key internal operations particularly in Human Resources.

One of the most impactful tools was AskHR, an AI assistant that handles employee requests and queries, eliminating traditional communication channels and enabling faster adoption of new workflows.

By 2024, AskHR had processed over 11.5 million interactions, leading to a 40% reduction in the operational HR budget and total productivity gains of more than $3.5 billion (Carlos Chivardi, Principal Account Technical Leader at IBM, LinkedIn, 2025The Times).

IBM’s watsonx AI platform supported this transformation by automating workflows across departments streamlining repetitive tasks, integrating seamlessly with existing systems, and enabling employees with varying skill levels to optimise their own processes using AI. This last point is critical: AI proves especially effective at the individual level.

Thanks to these advancements, IBM reported up to 40% reductions in time spent preparing technical documentation, along with significant acceleration in operational efficiency.

Core Principles for Effective AI Adoption

Drawing from its experience, IBM highlights several principles for success:

Organisational and Cultural Impact

IBM’s transformation goes beyond operational efficiency. It has driven a shift in organisational culture, fostering collaboration between humans and technology, and striking a healthy balance between automation and human input.

See also: How collaboration between humans and AI is evolving.

Moreover, the productivity gains were reinvested into developing critical roles particularly in software engineering, sales, and marketing domains that directly contribute to innovation and long-term competitiveness.

Recommendations for Leaders

For organisations looking to adopt AI strategically, IBM provides a model worth following:

Conclusion

IBM’s “Client Zero” initiative offers a blueprint for successful AI integration—demonstrating that technology can deliver significant value while supporting broader organisational transformation. For forward-thinking companies, a coherent AI strategy is the path to sustainable growth, higher productivity, and a lasting competitive edge.

“Automation gives us the ability to focus on what truly matters: innovation, creativity, and human collaboration.”
– Arvind Krishna, CEO of IBM

Sources:

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