The IBM CEO highlights the company’s focus on making AI more accessible and impactful for enterprises, emphasizing the shift from experimentation to delivering measurable business value, supported by new AI tools like Watson X Orchestrate. He also discusses stable government contracts, ongoing investments in AI, quantum computing, and mainframes to strengthen U.S. technological leadership and address economic and security challenges.
In the interview, IBM CEO discusses the rapid pace of technological change, highlighting the prediction of one billion new applications utilizing AI within three years. The company is focused on making AI accessible and useful for enterprises by enabling them to leverage their own data and integrate AI models seamlessly. IBM has recently announced Watson X Orchestrate, which includes 150 new AI agents from both IBM and its partners, emphasizing their commitment to simplifying AI deployment and scaling across organizations.
The CEO emphasizes that the experimentation phase with AI is transitioning into a focus on delivering tangible business value. He notes that about 25% of AI projects are already paying off well, and the key challenge is overcoming fragmentation in enterprise environments. IBM aims to help clients create more integrated, hybrid AI environments that can be scaled effectively, ensuring that AI initiatives are not just experiments but are deployed broadly to generate measurable returns.
Despite economic uncertainties, the CEO remains optimistic about enterprise technology spending. He argues that companies are eager to invest in AI and digital solutions to address supply chain issues, cost pressures, and productivity challenges. As technology can help scale operations without significant physical expansion, CEOs are willing to spend with a short to medium-term return in mind, which sustains robust enterprise tech investments even during uncertain economic times.
Regarding government contracts, IBM’s CEO downplays concerns about cancellations, particularly in discretionary or labor-based contracts, which are more vulnerable. He highlights that core contracts with agencies like the VA, GSA, and DOD are stable and unlikely to be affected. The broader government appetite for modernization and digital transformation remains strong, with a focus on leveraging technology to improve efficiency and security, especially in critical areas like air traffic control, where IBM’s solutions could enhance accuracy and safety.
Finally, the CEO discusses IBM’s advancements in AI, quantum computing, and mainframe technology. He underscores the importance of the U.S. leading in these fields for national security and economic growth. IBM has made significant investments in quantum computing and has developed high-capacity AI inference capabilities on its latest mainframes. The company’s strategic focus is on harnessing these innovations to maintain a competitive edge, with substantial investments in the U.S. aimed at fostering growth, security, and technological leadership in the global arena.