IBM (IBM) Mizuho Technology Conference summary

Industry context and technology trends

• AI and quantum computing are converging, creating a historic inflection point for compute power and business transformation.

• Hybrid cloud and AI are seen as structural tailwinds for the next decade or two, with multi-vendor strategies favored over single-vendor lock-in.

• Foundation models and large language models are rapidly commoditizing, with global competition driving innovation.

• The explosion of data is making AI essential for extracting value and driving productivity.

• Regulatory and geopolitical factors are increasingly shaping technology adoption and infrastructure decisions.

AI-driven operating models and enterprise transformation

• AI-native operating models enable instant profitability improvements in acquisitions by automating back-office functions.

• AI is transforming customer service and software development, with up to 80% of code now written by models in some cases.

• Orchestration, governance, and workflow integration are critical for enterprise AI, beyond just deploying larger models.

• Demand is rising for solutions that integrate AI with existing enterprise systems, emphasizing compliance and data guardrails.

• Avoiding vendor lock-in is essential for innovation and pricing power in AI adoption.

Consulting, employment, and workforce impact

• AI is reducing the need for consulting headcount for the same revenue, but overall demand for work is increasing due to lower unit costs.

• Digital workers and AI agents are expected to handle at least half of consulting work within 3-5 years.

• Macro-level job displacement from AI is estimated at 10% over a decade, but new job creation is expected to outpace losses.

• Upskilling and reskilling are critical to managing workforce transitions and avoiding social disruption.

• Entry-level hiring is increasing, with a focus on AI-proficient graduates.