IBM (IBM) Fireside chat summary

Introduction and agenda

• The session featured Arvind Krishna (Chairman, President, CEO) and Jim Kavanaugh (CFO), with an open Q&A format and a focus on AI, hybrid cloud, M&A, and quantum computing.

Current industry trends

• AI and hybrid cloud are driving significant productivity and cost savings, with $5.5 billion in savings realized and more headroom expected.

• AI is now embedded across all business segments, with software growth seen as a key proxy for AI success.

• Hardware supply chain constraints are impacting some deals, but software and consulting pipelines remain strong.

• Consulting bookings in GenAI are up 70% year-over-year, with 80% of new business from new clients.

Challenges and overcoming obstacles

• Hardware shortages have delayed some software deals, but these are seen as short- to medium-term issues.

• Institutional inertia and the need for foundational data transformation are hurdles for existing clients adopting GenAI.