IBM CEO Claims Only 2% of Software Faces AI Replacement Risk
IBM CEO Arvind Krishna stated during an interview with CNBC on July 23, 2026, that only 2% of IBM’s software is at risk of being replaced by artificial intelligence (AI)-built applications. The majority of the company's offerings are designed to support AI integration rather than compete against it. This claim comes amid a period where IBM has faced significant stock price declines and internal challenges, including an apology from Krishna during recent earnings calls for execution shortfalls. IBM’s software segment is its primary revenue driver, generating $7.76 billion in the second quarter of 2026—up 5% year-over-year—and representing about 45% of total company revenue. The CEO emphasized that most IBM software operates at an infrastructure level necessary for AI tools to function effectively. Despite Krishna’s reassurance, IBM shares have struggled recently due to broader market concerns and internal issues such as a sharp decline in mainframe revenues.
Topics: Artificial Intelligence IBM CEO Statement Software Revenue Risk