The Morning Brief Arvind Krishna: Cutting Through the AI Noise
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Feb 25, 2026 
Arvind Krishna, CEO of IBM known for steering its shift to software, hybrid cloud and quantum investments, joins to cut through AI hype. He discusses AI’s role in transforming IT services and consulting. He outlines India’s path to sovereign AI and balances local infrastructure with global cloud. He also sets expectations for quantum commercialization and near‑term tech spending.
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IBM's Deliberate Shift To Software
- IBM shifted from 20% software in 2019 to 45% today as part of a deliberate remake toward higher-growth areas.
- Three-quarters of M&A and similar share of R&D now prioritize software to sustain growth and cash flow.
Embrace AI But Keep Consultative Services
- Use AI as a productivity multiplier but keep human-led services for strategic transformation and change management.
- IBM created internal productivity gains of $4.5 billion and offers COBOL modernization tools to modernize legacy systems.
AI Agents Will Shift Work Not Shrink Demand
- IBM expects AI agents to handle roughly half of current human work but believes total headcount may stay the same or grow.
- Lower unit costs from AI will raise demand for tech work by unlocking more projects and addressing tech debt.