Beyond The Prompt - How to use AI in your company How IBM Used AI to Cut 40% of HR Operating Costs and Reinvest in the Company
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Oct 15, 2025 Mohamad Ali, Head of IBM Consulting and a pioneer in enterprise AI transformations, shares insights from IBM's groundbreaking internal project that generated $3.5 billion in savings. He discusses the importance of leadership and employee engagement, highlighting how company-wide hackathons fueled innovation. Mohamad also reveals the concept of 'Client Zero,' where IBM tested AI tools internally, and describes repurposing HR staff into consultants. The conversation explores measuring cost savings, the blending of human and digital labor, and new avenues for value creation.
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Early Neural Network Win
- Mohamad recounts his early startup building neural networks that saved a steel mill a million dollars a year in power.
- That success convinced him AI could solve large industrial problems and be commercialized as appliances.
Pick Practical Use Cases First
- Ensure top leaders are technically fluent so they can separate hype from viable AI use cases.
- Prioritize processes where data is accessible, problems decompose, and document-oriented workflows exist.
Use Hackathons To Build Momentum
- Run large, hands-on hackathons to educate employees and surface real use cases from the bottom up.
- Use contests and reinvest savings into engineering, products, and sales to build momentum.