IBM’s first-quarter strategy included AI and hybrid cloud efforts as its clients sought automated workflows and improved digital customer experiences.

“Our focus is on hybrid cloud and AI, the two most influential technologies for business. … In tandem, these technologies drive both business outcomes and innovation,” Chief Executive Arvind Krishna said during Wednesday’s Q1 2023 earnings call.

IBM’s approach to hybrid cloud offerings continued from 2022 efforts, but the new focus on AI has the tech provider looking to its clients for collaboration and use cases — especially as AI is projected to add $16 trillion to the global economy by 2030, Krishna said.

For example, in Q1, IBM worked with Citi to enhance the bank’s internal audit compliance process through AI, he said. “AI techniques, such as foundation models, large language models and generative AI, give businesses the ability to create 100 AI models form a single data set. … That is why we are seeing a lot more interest from businesses and using AI to boost productivity and reduce costs.”

As AI was used for Citi’s internal audit compliance process, the tech provider deployed other use cases for the tech, including for cybersecurity, Krishna said. “Our elite defense teams are deploying AI to defend against cybercriminals in real time.”

This quarter, IBM’s total revenue remained relatively flat year over year at $14.3 billion while software revenues, which include automation, data and AI, security and Red Hat revenue, increased 3% YoY to $5.9 billion, according to IBM’s earning supplement.

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