IBM’s Arvind Krishna asserts AI models threaten just 2% of the company’s software revenue, emphasizing infrastructure readiness over competition.
IBM CEO Arvind Krishna stated that only 2% of the company’s software could be replaced by AI-built applications, framing the rest as complementary infrastructure. The claim follows a 4.01% share price rise to $214.94, though the stock remains down 18% over the past month.
Software generated $7.76 billion in Q2, accounting for 45% of IBM’s revenue. Krishna distinguished between infrastructure software, which supports AI, and applications like Tririga, which faces phase-outs such as Starbucks’ $2 million annual contract ending in 2027.
Shares closed at $206.65 on Thursday but dipped near a 52-week low of $199.19 earlier in July, reflecting investor skepticism despite the recent rebound.