IBM CEO: Only 2% of Software at Risk from AI, Seeks to Reassure Wall Street After Q2 Miss

According to CNBC, IBM CEO Arvind Krishna stated on Thursday (July 23) that only 2% of the company's software could be replaced by artificial intelligence-generated applications, attempting to calm investor concerns following disappointing Q2 results. Krishna noted that the remaining 98% of IBM's software helps customers prepare for AI by managing data and running hybrid infrastructure.

IBM's Q2 earnings revealed significant challenges: the company's Z mainframe business revenue declined 42%, while transaction processing software revenue fell 9% quarter-over-quarter. Separately, IBM downwardly revised its full-year software revenue growth guidance to 6%-8%, down from earlier expectations of double-digit growth.