In 2023, IBM laid off nearly 8,000 employees, primarily from its HR division, using its AI-powered AskHR platform to automate HR functions.
Despite the automation efforts, operational gaps arose as six percent of tasks requiring human judgment and empathy could not be handled effectively by the AI.
As a result of these gaps affecting productivity and service quality, IBM quietly began rehiring in 2024 and redirected automation savings to areas where human skills are essential.
The experience highlights the importance of balancing technology with human insight, as automation can enhance productivity but may not fully replace the human element in complex or nuanced scenarios.