IBM Vice Chairman Gary Cohn said Wednesday that the company's software is not being disrupted by artificial intelligence [1, 2].
The comments come as investors and analysts weigh whether generative AI will replace traditional enterprise software or enhance it. Cohn's perspective suggests that IBM has successfully integrated these technologies into its existing product suite rather than facing a replacement of its core offerings.
Speaking on CNBC's "Squawk on the Street" program in New York, Cohn addressed the tension between AI innovation and established software business models [1, 2]. He said, "Our software is not being disrupted by AI" [1].
Beyond the internal health of IBM, Cohn discussed the broader implications of the current market rally. He said that AI and energy trades have become massive momentum drivers for the stock market [3]. This concentration of growth in a few specific sectors has raised questions about the stability of the wider economy.
Cohn warned that the market is heavily reliant on these specific trends. He said, "The stock market would flounder if traders stripped out AI and energy trades" [3].
These remarks occurred during a broader discussion regarding the testimony of Federal Reserve Chairman Kevin Warsh [1]. Cohn's analysis links the technical success of AI software with the financial volatility of the public markets, a connection that highlights how closely corporate performance is now tied to AI sentiment [1, 3].
Cohn, who previously served as the director of the National Economic Council under Donald Trump, said that the momentum created by these trades is a primary engine for current market valuations [3].
“"Our software is not being disrupted by AI."”
Cohn's assertions reflect a strategic effort to reassure shareholders that IBM's legacy and current software assets remain viable in the age of generative AI. By linking IBM's stability to the broader market's reliance on AI and energy trades, he underscores a systemic dependency where the perceived value of the tech sector is increasingly detached from traditional software utility and tied instead to speculative momentum.
