IBM CEO says AI poses limited risk to software unit
IBM AI software risk stays limited as Arvind Krishna defends core growth areas See how IBM's hybrid cloud and data tools could cushion investor worries
IBM CEO Arvind Krishna said the company believes only a small portion of its software could be replaced by AIbuilt applications, as he tried to calm investor concerns after weakerthanexpected quarterly results.
Krishna said IBM's software business is more focused on infrastructure, data management and hybrid cloud tools than on applications that could be directly substituted by AI models. He argued that this positioning could support the business even as investors question how generative AI may affect software companies.
The comments came after IBM reported pressure in its mainframe and transactionprocessing businesses, along with signs that some customers delayed spending on data center equipment amid rising AIrelated infrastructure costs. IBM still kept its fullyear free cash flow outlook, while management lowered expectations for software revenue growth from earlier doubledigit guidance.