AI Experimentation era is ending: IBM CEO Krishna

May 12, 2025

Bengaluru: IBM expects over 1 billion apps to be built using GenAI by 2028. A recent IBM study found that business leaders expect to double down on their AI investments over the next two years, with most actively adopting AI agents and preparing to scale them. Till now, though, their pace of investments led to disconnected technology, and only 25% of AI initiatives achieved the return on investment (ROI) they expected. IBM chairman & CEO Arvind Krishna attributes this to access to enterprise data, the siloed nature of different applications, and the fragmentation happening in the infrastructure. “That is why you see us focus on both hybrid cloud and AI together,” he said in a virtual press conference on Monday ahead of its flagship Think event in the US.

Krishna said clients are looking for productivity, cost savings, and scaling the revenue of their own companies. “AI is one of the unique technologies that can hit at the intersection of all three of those. So, the only change over the last 12 months is that people are stopping experimentation and focusing on where the value to the business is right now. The era of AI experimentation is over. Today’s competitive advantage comes from purpose-built AI integration that drives measurable business outcomes,” he added.

As agents are going to form an integral part of how GenAI gets used inside enterprises, IBM is combining hybrid technologies, agent capabilities, and deep industry expertise from its consulting division to help businesses operationalise AI. The company has launched WatsonX Orchestrate, a single solution to build and deploy AI agents, assistants, and workflows across a business. It allows firms to build agents for enterprise in less than five minutes, and it integrates with 80 business applications, including Adobe, AWS, Microsoft, Oracle, and Salesforce Agentforce, the company said.

The agent orchestration platform handles multiagent, multitool coordination needed to tackle complex projects like planning workflows and routing tasks to the right AI tools across vendors. Forrester’s total economic impact (TEI) study projects a 176% RoI over three years by automating the integration of apps, APIs, events, and more across hybrid cloud. As AI adoption accelerates, integration remains a major challenge. Most enterprises rely on a patchwork of APIs, apps, and systems spread across on-prem and multicloud environments, many of which weren’t built to work together.

“Enterprise data being mixed with public models is a significant issue for our enterprise clients. We are addressing this concern with a 40% reduction in the effort required through our WatsonX data products,” Krishna said. The company also has a new mainframe launching this quarter. The new LinuxOne 5 system is said to enable up to 450 billion AI inferences per day, utilising the onchip processor technologies and with the Telum 2 processor. “We believe this advancement will significantly impact the market, particularly in combating fraud in inline financial transactions. We estimate this market to be worth almost $200 billion. Furthermore, it will also benefit areas such as imaging, medical diagnosis, and other use cases,” Krishna added.

Source: GWFM Research & Study

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