The IBM CEO on leading tech companies into the future.

Insights: Ginni Rometty

[MUSIC PLAYING] I'm Ginni Rometty, chairman, CEO, and president of IBM. [MUSIC PLAYING] I started out as an engineer, having gotten a degree in both computer science and electrical engineering. And then worked at both General Motors and IBM. And over that time frame, I've done everything from very technical jobs, obviously as a engineer, up through many, many different roles in general management. And one of the greatest common threads as I think back was every job. I took, I just thought about what can I learn from this. And if I just focused on that, I'd be prepared for whatever was next. [MUSIC PLAYING] My very first job, if you put aside things like babysitting and lifeguarding, believe it or not, I sorted mail, third shift, for the US post office. I certainly learned the value of an education. That with the right education, you could then do whatever you wanted. A little bit later after college, though, my very first job was working for General Motors. I have to say, while I like cars, I am not passionate about cars as other people are. And it was what I learned at that time, what I was passionate about was taking IT And applying it to lots of different industries. And in the end, so much of our life is working. It matters to do something you're absolutely passionate about. [MUSIC PLAYING] Well, there was never a watershed moment that I can remember saying to myself, gee, I want to be CEO. But what I do have is a really strong memory, throughout my whole career, that anyone in IBM could be anything or anything they wanted to be in IBM. And that to me, I think, always gave me that feeling that just keep going because you can be whatever you want to be. One of the things I've tried to do is live by a couple leadership themes, lessons, that I have sort of accumulated over my time as a leader. The first one is, and it's really one I learned from my mother, and it had to do with what I watched her do to bring up four kids all by herself, which was never let anyone define who you are. The second lesson, I would say, I actually learned from my husband. And it had to do about having more confidence about taking on risk. And I would call it growth and comfort never co-exist. And that's what gives you energy to go forward. And then, the third, I would tell you I learned it from Ken Chenault, but actually, it came from Napoleon. And it's, I think, a wonderful thing as you run bigger and bigger organizations. Always define reality. But then give hope. [MUSIC PLAYING] 

Insights: Meet Ginni Rometty in Her Own Words

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She was Chairman, President and CEO of IBM.

Meet Ginni Rometty in Her Own Words

The Chairman, President, and CEO of IBM was interviewed ahead of Most Powerful Women 2019.

Ginny Rometty, chairman, CEO, president of IBM. I started out as an engineer, having gotten a degree in both computer science and electrical engineering, and then worked at both General Motors and IBM. And over that time frame, I've done everything from very technical jobs, obviously, is an engineer up through many, many different roles in general management and one of the greatest common threads. I think back with every job I took, I just thought about what can I learn from this? And if I just focused on that, I'd be prepared for whatever was next. My very first job, if you put aside things like baby sitting and lifeguarding, believe it or not, I sorted mail third shift for the U. S. Post office. I certainly learned the value of an education that was the right education. You could then do whatever you wanted a little bit later, after college, though, my very first job was working for General Motors. I have to say, while I like cars, I am not passionate about cars as other people are, and it was what I learned at that time, what I was passionate about taking I t and applying it to a lot of different industries. And in the end, how much of our life is working, It matters to do something you're absolutely passionate about. Well, there was never a watershed moment that I can remember saying to myself, G, I want to be CEO. But what I do have is a really strong memory throughout my whole career that anyone in IBM could be anything or anything. They wanted to be an IBM and that to me, I think always gave me that feeling that just keep going because you could be whatever you want to be. One of things I tried to do is live by a couple leadership themes, lessons that I have sort of accumulated over my time as a leader. The 1st 1 is and it's really when I learned from my mother and it had to do with what I watched her do to bring up four kids all by herself, which was never let anyone to find who you are. The second lesson, I would say actually from my husband, and it had to do about having more confidence about taking a risk, and I would call it growth and comfort, never co exist, and that's what gives you energy to go forward. And then the third, I would tell you I learned it from Kenshin all but actually it came from Napoleon and I think a wonderful thing. As you run bigger and bigger organizations always define reality, but then give up.

 When digital business marries up with what I'll call digital intelligence, we said it is the dawn of a new era about being a cognitive business. When every product, every service, how you run your company can actually have a piece that learns and thinks as part of it, you will be a cognitive business. So the digital is just the wires, basically. You're collecting the data. And then you have to make something happen. And then you take this world-- when I say digital intelligence, some shorthand it to artificial intelligence. I think it's much more than that. You put those two together. And I say cognitive is both an era of technology and it it as well a business model. But now, I think this next decade, it is about, can you become a cognitive business? And to me, if you take big data, cloud, mobility, this is the fourth, and I believe it is the most disruptive of these trends. It is clearly the one-- you guys have been with me as Watson has grown up, right? He is symbolic of this era. And he is the first real platform of it. But that idea, that I think it allows existing companies, you will be the disruptor. You will be the disruptor should you choose to do it. Because it changes everything about how you operate. Here's what I already see you can do with a business. And I kind of lay it out, if I can share kind of five areas for you to look at in your business, about if you were beginning this journey to be a cognitive business. The first one, it will drive a deeper engagement with your clients than you have ever seen. Proof-- work we're doing with an insurance company. Watson's behind the scene who knows the client and helping say, as the person is filling out forms, putting it in terms they understand, knowing their portfolio. Closure rate, nine points higher than before. Nine points is enough to change an industry on some of these things. Second thing, your ability to scale expertise. If you just think if any employee in your company could perform is the best one did. And so the US spends $156 billion a year on training in business. 90% of those skills are lost in the first year. I mean, you just don't remember them. So what if you had help? I think you will scale expertise with these systems. The third thing, you'll put learning in every product. One of my favorite, because we have a big ecosystem, is the company building children's toys. That it's a dinosaur using Watson inside, that he adapts to how your child learns. And that's how he then communicates with the child. But it will be true for any product and service. And then, as well, how you'll change the operations of your company. With someone in here, we're doing some big work on their supply chain. You're not going to tell us who? I won't tell you who. Because this is a competitive edge for everyone. Two to 10 points higher on price. I mean, being able higher revenue, five points of margin. And then, the last is how you will actually do discovery. If you're afar-- it doesn't matter who you are. You pick your choices of where investment goes. It will help there. So that's why-- Discovery being-- Discovery whether it's pharma or new areas to go into. I mean, search, data. And by the way, we just announced Thomson Reuters. Thinking of this as the foundation of how they do their work in the future. Ginni, there are those five things pretty much transform everything about every business represented in this room. This is why if it is-- and this is why I think it's a wonderful opportunity to, instead of being disrupted, you are the disruptor. 

Insights: Ginni Rometty Says Cognitive is Next Big Tech Disruptor

AI can bring change to almost any business. 

Ginni Rometty Says Cognitive is Next Big Tech Disruptor

The IBM CEO says companies that engage in artificial intelligence can bring change to almost any business. She spoke at Most Powerful Women 2015.

when digital business married up with what I'll call digital intelligence, we said it is the dawn of a new era about being a cognitive business. When every product, every service, how you run, your company can actually have a piece that learns and think it's part of it. You will be a cognitive. The digital is just the wires. You're collecting the data and get me. And then you take this world when I say digital intelligence some short handed to artificial intelligence. I think it's much more than that. You put those two together, and I think cognitive is both an era of technology, and it is, well, a business model. But now I think this next decade it is about can you become a cognitive business? And me if you take big data cloud mobility, this is the fourth, and I believe it is the most disruptive of these trends. It is clearly the one you guys have been with. Mia's. Watson has grown up right. He is symbolic of the era and he is the first real platform of it. But that idea that I think it allows existing companies, you will be the disrupter you will be the disrupter. Should you choose to do it because it changes about everything about how you operate. Here's what I already see you can do with the business, and I kind of lay it out if I can share kind of five areas for you to look at in your business about If you were beginning this journey to be a cognitive business, the 1st 1 it will drive a deeper engagement with your clients than you have ever seen. Proof work we're doing with an insurance company watching behind the scene, who knows the client and helping, say, as the person filling out forms, putting it in terms they understand. Knowing their portfolio closure rate nine points higher than before nine points is enough to change an industry on some of these things. Second thing, your ability to scale expertise if you just think it's any employee in your company could perform is the best one did. And so the U. S spends 156 year on training in business. 90% of those skills are lost in the first year. I mean, you just don't remember. So what if you had help. I think the scale you will scale expertise with these systems. The third thing you'll put learning in every product. One of my favorite cause of a big ecosystem is the company building Children's toys that it's a dinosaur using Watson inside that he adapt to how your child learns, and that's how he then communicates with the child. But they'll be true for any product and service and then, as well, how you change the operations of your company with someone in here. We're doing some big work on their supply chain of You're not going to die. I won't tell you because there's a competitive answer every 1 to 10 points higher on price. I mean being able higher revenue five points a margin, and then the last while while you will actually do discovery. If you're far, it doesn't matter who you are. You picked your choices of where investment goes. It'll help. They're so discovery, the recovery, with its pharma or new I areas to go into any search data. And by the way, we just announced Thompson Reuters. Thinking of this is the foundation of how they do their work in the futures. Jimmy or their those five things pretty much transformed everything about every representative it is. And this is why I think the wonderful opportunity to either be the you know, instead of being disrupted, You are the disrupter.

[MUSIC PLAYING] I've, for a long time said, and I really believe it. The day I will change 100% of jobs. Change. I didn't say replace. I didn't-- Every job. But every job in some way, different degrees, some will be new, but otherwise change. And so, then the most important question becomes, people will talk about privacy and trust, those things. But, boy, I think the other thing is, if you don't feel like you have the skills to participate in this world and work with this, this is a very divisive thing. It means you've got to find a way for everyone to be able to participate. And that the system's got to work for everyone. It means everyone can't have a college degree, because it's moving too fast. If we think everybody's got to be a data scientist and all these things, that's crazy. And so, there's got to be a way for less than four year degrees, to get a huge part of the population participating. And at the other end, there's got to be a way, and we've got something to talk about to retrain. I thought, at that time, as we start to introduce these technologies, it's our responsibility to start to prepare society for them. And one of the ways, is to Alan's point, would be around training. So here, I have all these open jobs. 30,000 jobs open in the United States. And I said, well, what am I going to do? And we started to say, look, yes, we hire lots of PhD's, university graduates. But I need more workforce. And we had coined this idea-- and I keep using the words, I'd like to try it on you, called new collar. The idea was if you could believe in a different paradigm, not white collar, not blue collar, so nothing negative about this. But that you could make a really good living, a career, you did not have to have a four year degree. So I would value your skills over your degree. I would value your skills. I would also believe that there could be new models of education that could get you there. One thing we started with something called pathway to technology, early college, high school. It's a mouthful. P-tech? P-tech. But it's just-- and I don't believe it's my job to replace government or anything like this. I need these workers. I need these employees. And I need society to love these technologies. But you've gone way beyond training your own-- Yes. Oh, yes. Why? [INTERPOSING VOICES] I can come back to my own. [INTERPOSING VOICES] Well, I need more than just even what I have. And so, the idea was to say, let's start to prepare. And we went to high schools. We went to the most disadvantaged high schools that we could find. The first one was here in Brooklyn. This is now seven years and going. So think of a six year high school, would be an easy way to think about it, with a community college. A community college and the high school together. And there is a very distinct formula. The formula is, because I'll come back to-- the most important skill a human centered actually, not the hard technology skills. And align them with a curriculum. Not vocational. A kind of a how do you learn curriculum. Give them internships, mentors, your employees, and a chance at a job. We have watched 100% of kids come through. We're now up to 125,000 kids, almost all first generation. 14 countries, 11 states. And-- How long-- [INTERPOSING VOICES] 400X. Well, you can get through as fast-- six year. You can get through. And the kids actually, the most interesting thing is, many are graduating in four years and four and one half with both their high school degree and their associate degree. And some go the whole six. And ironically, we thought they'd all go to work. About a third are coming right into work. And the others are now going on to their four year degrees. I'm like, that wasn't supposed to work that way. Come on back here. Get back here. Where there's a will, there's a way. There's plenty of ways. And it has been repeatable. So now, it's not just us. We have 500 other companies working with us. [MUSIC PLAYING]

Insights: IBM Champions New Skills for Post-AI Workplaces

Ginni Rometty spoke at CEO Initiative 2019

IBM Champions New Skills for Post-AI Workplaces

for a long time said. And I really believe it. The day I'll change 100% of jobs change I didn't replace. I didn't every job but every job in some way different degrees. Some will be new but otherwise changed. And so then the most important question becomes. People talk. We'll talk about privacy and trust those things. But boy, I think the other thing is, if you don't feel like you have the skills to participate in this world and work with this, this is a very divisive thing. It means you gotta find a way for everyone to be able to participate and that the system's gotta work for everyone. It means everyone can't have a college degree because it's moving too fast. If we think everybody's got to be a data scientist and all these things that crazy and so there's gotta be a way for less than four year degrees to get a huge part of the population participating, and at the other end there's got to be away and there were about to retrain. I thought at that time, as we start to introduce these technologies, it's our responsibility to start to prepare society for them. And one of the ways is Alan's point would be around training. So here I have all these open jobs, 30,000 jobs open in the United States. And I said, Well, what am I going to do? And we started a look. Yes, we hire lots of Ph. D's university graduate, but I need another. I need more workforce, and we had coined this idea, and I keep using the words I'd like to try it on you called New Collar. The idea was, if you look to believe in a different paradigm, not white collar, not blue collar. So nothing negative about this, but that that there you could make a really good living a career. You did not have to have a four year degree, so I would value your skills over your degree. I would value your skills. I would also believe that there could be new models of education that could get you there. One thing we started with something called Pathway to Technology Early College High School, a mouthful. But it's just a and I don't believe it's my job to replace government or anything like this. I need these workers I need these employees and I need society to love these technologies. But you're gone way beyond training your own. Yes. Oh, yeah. So what? Oh, I get on a response. I need more than just even what I have. And so? So the idea would waas to say, Let's start to prepare And we went to high school. We went to most disadvantaged high schools that we could find the 1st 1 was here in Brooklyn now seven years and going So think of a a six year high school. Be an easy way to think about it with a community college, community, college in the high school together. And there is a very distinct formula. The formula is I'll come back to the most important skill of human centered actually not hard technology skills and aligned them with a curriculum and at vocational kind of How do you learn curriculum? Give them internship, mentors, your employees and a chance of a job. We have watched 100% of kids come through. We're now up to 125,000 kids. Almost all first generation 14 countries, 11 states. And how long? 400 ex. Well, you can get through it fast. Six year you can get through and the kids. Actually, the most interesting thing is many are graduating in four years and four and 1/2 with both their high school degree and their associate degree, and some go the whole six. And ironically, we thought that I'll go to work. About 1/3 are coming right into work, and the others are now going onto their four year degrees. I'm like that wasn't supposed to work that way way back here when you get back here. But there's whether the Willers away. There's plenty of ways and it is it has been repeated. So now it's not just us. We have 500 other companies working with us.

[MUSIC PLAYING] When we surveyed Fortune 500 CEOs, one of the questions we ask them, was to the extent you're using AI, are you using it-- are you using business process automation? Yeah, I'm sure they all said yes. Or are you changing the value for your customers? 69% said business process automation. That is 100% replacing people. Yeah. So I said the word augment. Right? So it doesn't mean that-- and I'm not trying to be word smithing. For as long as all of us would know, technology has replaced some things. That's going to happen. But augment, if the purpose of these technologies is to let you do what you do best. What man does best, and help him in doing his job, and I have come to see that now when I've watched this stuff fully implemented at clients. Look, I think the biggest issue with AI right now, I call it that most people have random acts of digital everywhere. And they've put this sprinkle dust of AI, and they're getting no value from it. Because it's just little bits of things. They didn't really change how any work got done. This is kind of chapter two. There's some pivots coming here, where the movie's going to go. But that idea that you're augmenting, that's why-- if you ask me, like some of my own lessons learned in implementing in IBM. Probably the biggest set of skills I had to build were all human centered skills. They weren't teaching people like the technologies of AI. It was having to put in 20,000 design engineers, 50,000 studios, 200,000 agile. Or I couldn't get the value out of putting the technology in the middle of a new workflow. But the business process automation is the easy stuff. That's the low hanging fruit. If you want to just do what you used to do automated. Most people don't want to-- [INTERPOSING VOICES] That doesn't augment humans. That just replaces them. Yes. So how do you get people to focus on where the value is? Not the easy low hanging fruit. Or not just the easy, low hanging fruit. Well, look, I think we're entering kind-- I view a chapter two here now. What people like, to date, almost all digital transformation-- everybody would say digital is the reason they're transforming. And I think, to date, everyone would say the bar has been set by born digital, born on the cloud, set the expectations of where experiences. I think you're kind of entering a second chapter. In this first chapter, most people I know who did anything with AI and automation, it was very much outside in. It was let's put something new out for customers on the front end. Something new. An outside in application. Typically customer facing. New and additional. And I think, when you say, how do I get this to go for the good? You were additive in what you were doing. You didn't fundamentally change how you did claims processing. You didn't fundamentally change these things yet. And so, I think we're about to start that side now. So I don't think people have seen that. We're in the early inning. I think we're in the very early innings of this. And the reason why, I always say, one of my biggest lessons learned on deploying AI, the hardest thing is changing the workflow and the change management. Because you've got to change how people do work. That is really the hard part. And we're just now coming into it. [MUSIC PLAYING] 

Insights: Ginni Rometty Predicts Rise of Cognitive AI 

The IBM head spoke at CEO Initiative 2019.

Ginni Rometty Predicts Rise of Cognitive AI 

when we surveyed Fortune 500 CEOs. One of the questions we ask him, What's to the extension using a r A. I Are you using it? Are using business process automation? Yeah, I'm sure they said yes. Or are you changing the value for your customers? 69% said business process automation that is 100% replacing people. Yeah, so I said, the word augment, right? So it doesn't mean that I'm not trying to be worth missing for as long as all of us would know. Right? Technology has replaced some things. You know that that's going to happen. But augment. If the purpose of these technologies would let you do what you do best, what man does best and help him in doing his job, and I have come to see that now, when I watched this stuff fully implemented it clients. Look, I think the biggest issue with a I right now, I call it that most people have random acts of digital everywhere, and they put the Sprinkle dust of a I, and they're getting no value from it because it's just little bits of things they didn't really change. How any work got done. This kind of chapter two. There's some pivots coming here where the movie is going to go. But that idea that your augmenting death white if you asked me like some of my own lessons learned in implementing an IBM the biggest set of skills I had to build. We're all human centered skills. They weren't teaching people like the technologies of a I. It was having to put in 20,000 design engineers 50,000 studios, 200,000 agile, or I couldn't get the value out of putting the technology in the middle of a new workflow. So but the business process automation is the easy stuff. That's the low hanging fruit even wanted to do it used to do automated. Most humans just replaced. Yes. So how do you How do we How do you get people to focus on where the value is? Not the easy, low hanging fruit? Yeah, or not just the easy lowing Well, look, I think we're entering kind of eye view a chapter to hear now what people like to date almost all digital transformation. Everybody say digital's reason. They're transforming. And I think to date everyone would say uh, the bar has been set by born digital. Born on the cloud set the expectations of where experiences I think you're kind of entering a second chapter in this first chapter. Most people I know who did anything with a I and automation. It was very much outside in it was, let's put something new, uh, for customers on the front end, something new on outside in application, typically customer facing new and additional. And I think when you say, How do I get this to go for the good? You were additive in what you were doing. You didn't fundamentally change how you did claims processing. You didn't fundamentally change these things yet. And so I think we're about to start that side. Alice, I don't think people have seen that. So we are in the early and I think we're in the very early innings of this, you know, and I and I in the reason why always say one of my biggest lessons learned deploying a I. The hardest thing is changing the work full in the change management. You got change of people to work. So this is that is really the hard part, and we're just now coming into it.

[MUSIC PLAYING] I do think for consumer privacy, there does need to be some regulation about what are your rights and the right to be forgotten, to know what is there, et cetera. That has to get done. I then think from a liability perspective, is precision. Because one of my greatest fears about all the regulation talk is-- and I got into this quite a lot in Europe as they were going through. And I think they moved their way through this, is that you could completely derail a digital economy. Unintended consequences very easily on these topics, just like people conflate consumer and business process data moving around. And so but I do think-- that's why I call it precision regulation. And I think from a liability perspective, things like unlawful material, et cetera, you should be held liable. And this gets back to it. Let me just-- because there is a story I think that's worth telling on this and about the role we each have. Senator Portman, there is the SESTA Bill, the child sex trafficking bill. For a very long time, he was trying to get this bill passed in our country. And it said that if you knowingly-- and I want to take a poll-- if you knowingly hosted child sex trafficking, you are liable. So if I asked you that, if you knowingly hosted it, do you think you should be liable? Raise your hand. Yeah. You hands went up very quickly. Mine, too. Because the question was if I knowingly did it. If I knowingly did it, I'm like, yes, of course. But there are many who did not believe that was true, by the way. Didn't believe it should-- No. They said, no, no, I'm just-- I mean, I cannot be held. But they said, no, no, you knowingly know this. So I think now this regulation comes because OK, I have got to be-- some of this is you have a responsibility. We have a responsibility in this era, right? Now this is an ethics question. Because I'm saying I have determined I think child sex trafficking is a bad thing when I'm saying this. And so that point I think that regulations should be there for things like that, that is against the law, but we shouldn't have to fight about that. That should be very clear, those kinds of things. And so therefore my regulation would be on consumer protection, privacy, and then unlawful activities, all right, would be my precision regulation. 

Insights: IBM's CEO Wants 'Precision Regulation for Big Data

Ginni Rometty spoke at CEO Initiative 2019.

IBM's CEO Wants 'Precision Regulation for Big Data

I do think for consumer privacy there does need to be some regulation about, you know, what are your rights and the right to be forgotten to know what is there etcetera that has to get done. I then think from a liability perspective is precision. Because when my greatest fears about all the regulation talk is and I got into this quite a lot in Europe as they were going through, and I think they move their way through this is that you could completely derail a digital economy. Unintended consequences very easily on these topics, just like people conflict, consumer in business process data moving around. And so But I do think I'm deaf. I call it precision Regulation, and I think from a liability perspective, things like, you know, unlawful material, et cetera. You should be held liable, and but this gets back to it. Let me let me just because there is a story, I think it's worth telling on this about the role we each have. Um, Senator Portman. There's the test a bill, the child sex trafficking bill for a very long time. He was trying to get this bill passed in our country And it said that if you knowingly and I won't take a poll, if you knowingly hosted child sex trafficking, you were liable. So if I asked you that if you knowingly hosted it, do you think you should be liable? Raise your hand? Yeah. You hands when a very quickly Mine, too. Because the question was if I knowingly did it if I knowingly did it, I'm like, yes, of course. But there are many who did not believe that was true. By the way, I didn't believe it should know. They said no. No, I met him. Just some pipe means I cannot be held. But this normally you knowingly know this. So I think this now this regulation comes because Okay, I have got to be some of this is you. You have a responsibility. We have a responsibility in this era right now. This is an ethics question, right? Cause I'm thinks I have determined I think child sex trafficking because a bad thing when I saying this And so that point, I think that regulations should be there for things like that. That is against a lot. But you know, you we shouldn't have to fight about that. That should be very clear, those kinds of things. And so therefore my regulation being consumer protection, privacy and then unlawful activities right would be in my precision regulation.

[MUSIC PLAYING] This topic can sometimes get easily turned sideways. You'll be in a car and people say, oh, no, AI's about replacing people, replacing jobs. And I am so clear that instead of artificial intelligence-- and there's a reason we call it cognitive. And my own husband said to me, it doesn't roll off your tongue just right away. And I said, but there's a reason to not call it artificial intelligence. This is about augmenting what man does. And it's man and machine. That's our goal. That's incredibly important. And so that idea is what-- that's why I say augmenting intelligence is really what I think-- and it's going to be in every one of your businesses in every decision. I mean, I've been really bold. I think in the next five years, every important decision is going to get assisted by this kind of technology, personally and professionally. It's also going to eliminate a lot of jobs. It may create jobs, but it's going to eliminate-- you talk about the banking sector. There are probably vast swaths of people doing simple analytics in banking that won't be necessary in the future, possibly in areas like accounting. How should we think about that? Yeah, I have some pretty firm views about this. I think if you step back and you look at technology through every era, it has displaced jobs. But it has also created a lot of jobs. And I often remind people. I say go back and think about farming. And when farming machinery came around, people did lose jobs. And it put a premium on reading. And then you go on to the industrial age, and you'll remember when factories-- that put a premium in it so it gave rise to community colleges, vocational schools around the world. Because it put a premium on mechanical skills that you had to have. So one day, we're going to look back and whatever this era is going to get called in retrospect, I think, it's going to put a premium on maths and science. And not just advanced degrees, across a whole continuum of skills. So I think that's how you have to look at it. So it's going to do more good, but what does it then open up? And it opens up an issue that I think is front and center to everything in the debate today, which is skills and jobs. And so it's going to put a premium on. And I think we have a big responsibility to help here on moving the skills up. 

Insights: How Ginni Rometty Expects AI to Eliminate and Create Jobs

She says this will echo the Industrial Revolution.

Ginni Rometty Expects AI to Eliminate and Create Jobs

She says this sea change will echo the Industrial Revolution. (October 2016)

topic can sometimes get easily turned sideways. You'll be in a lot of people say, Oh no, a eyes about replacing people replacing jobs. And I am so clear that instead of artificial intelligence and there's a reason we call it cognitive in you my husband said to me, You know, it doesn't roll off your tongue just right away, you know? And I said, But there's a reason to not call it Artificial intelligence is about augmenting what man does in its man and machine. That's our goal, that incredibly important. And so that idea is it. That's why they augmenting intelligence is really what I think, and it's going to be in every one of your businesses and every decision. I mean, I've been really bold. I think in the next five years every important decision is going to get assisted by this kind of technology, personally and professionally, it's also going to eliminate a lot of jobs. They create jobs, but it's gonna look, you know, you talk about the banking sector. They're probably vast swaths of people doing simple analytics and banking that won't be necessary in the future, possibly in areas like a counting or How do you How should we think about? Yeah, I have some pretty firm views about this. I think if you step back and you look a technology to every era, it has displaced job. But it has also created a lot of jobs, and I often remind people they go back and think about, you know, farming. And when farming machinery came around, people did lose jobs and it put a premium on reading. And then you go on to the industrial Age and you'll remember when factories that put a premium. And it's what gave rise to community colleges, vocational schools around the world because it put a premium on mechanical skills that you had a hat. So one day we're gonna look back and whatever this area is gonna get called, in retrospect, I think it's gonna put a premium on math science and not just advanced degrees across the whole continuum of skills. So I think that's how you have to look at it, so it's going to do more good, but what does it then open up? It opens up an issue that I think is like front and center toe everything in the debate today, which is skills on job. And so it's gonna put a premium on, and I think we have a big responsibility to help here. I'm moving the skills up.

[MUSIC PLAYING] I think, for me, what transformation's about because I-- before talked about this idea that growth and comfort don't co-exist. And I talked about it when I was here last time. I said I think it's true for people, for companies, for nations. But what does that mean? So what do you do? So sort of the three things that I feel that I learned over the long run here. The first one was never protect the past. And if you never protect the past, I think, one of the things you'll say to yourself, you'll be willing to never love something so much you won't let it go either. So that would be my first one. My second one is never define yourself as a product. And in fact, I would augment it, I often say, never define yourself by your competition either. It's good that you're not defining yourself as a product at IBM because you would be well split personality. [INTERPOSING VOICES] Thousands and thousands of products. It's honestly driven more by-- if you live and define yourself by a product or your competition, you lose sight of who your customer is. And you lose sight of what you do is-- I always say, we don't exist without them. So that is why you define yourself not by a product or by what you offer. And then, my third one is about this idea, always, no matter what it is, it is this relentless reinvention of whatever it is that you do. This relentless reinvention. And I can remember one of the things in one of my conversations Warren had said to me. And I think it's a good question to ask yourself for any business. When you make your decisions, always people say, would I make the same decision? Because if you're a relentless reinvention, you kind of have a mindset of being a steward for the long term. And you'll say to yourself, you know, would I make the same decision if I was a private company or a public company? I think is a good question to always ask yourself when you make big decisions. 

Insights: Ginni Rometty's Top 3 Tips for Growing a Company

Her top advice for leading and growing a company. 

Ginni Rometty's Top 3 Tips for Growing a Company

IBM CEO Ginni Rometty shares her top advice for leading and growing a company. (October 2014)

I think for me, what transformations about goodbye before talked about this idea that growth and comfort don't coexist. And I talked about it when I was here last time. I said, I think it's true for people, for companies, for nations. Um, but what does that mean? So what do you do? So sort of the three things that I feel that I learned over the long run here, the 1st 1 Waas never protect the path. And if you never protect the path, I think you know one of the things you'll save yourself. You'll be willing to have never loved something so much. You won't let it go, either, so that would be my 1st 1 My 2nd 1 is never defined yourself a product, and in fact, I would. I would augment it often say never. Define yourself by your competition. Either You're not defining yourself a product that I'd be on because you would be well split personality, you know. And it is. It's honestly driven more by because if you live in to find yourself by ah product or your competition, you lose sight of who your customers and you side of what you do is, I would say we don't exist without them. So that is why you define yourself, not by a product, right by what you offer. And then my 3rd 1 is about this idea. Always, no matter what it is. It is this relentless reinvention of whatever it is that you do this relentless reinvention. And I think I can remember one of the things that one of my conversations Warren had said to me, I think it's a good question to ask yourself for any business when you make your decisions. Always, people say, Would I make the same decision? Because if you if you're relentless reinvention, you kind of a mindset of being a steward for the long term, and you'll say to yourself, You know what? I make the same decision If I was a private company or a public company, I think is a good a good question. I always ask yourself when you make big decisions

 Look, I think that it's actually not a company that keeps me up at night, because I believe the other thing is never define yourself by competitors. You define yourself by what your clients either want or what you believe they'll need for the future. So define yourself by your client, not your competitor. And therefore, what keeps me up at night is speed, speed of transformation, continuing to move to that future. And therefore, it's always around, do this faster, get a view, test it, try it, move it, and make bold moves, which to our discussion, bold moves, whether it had been around Watson, whether it had been around cloud, whether it been around the expansion, or partnership with Apple, or whether it's all around the announcement of a new platform of hardware that's built for data and cloud, those are the things you just want to keep moving forward, forward. If you ask me one question about, so what is your business model? Our business model is always about shifting to higher value for clients and thus for ourselves. And that's what I know our shareholders expect for the long-term. 

Insights: Why Ginni Rometty Doesn't Focus on Competitors

Ginni Rometty Doesn't Focus on Competitors

Define yourself by clients' needs. (September 2014)

look, I think that it's actually not a company that keeps me up at night because I believe the other thing is never define yourself by competitors. You define yourself by what your clients either want or what you believe they'll need for the future. So define yourself by your client, not your competitors, and therefore would keep me up at night. Is speed speed a transformation continuing to move to that future and therefore it's always around. Do this faster get of you, test it, try it, move it and make bold moves which toe our discussion. Bold moves. Whether it had been around Watson, whether it had been around cloud, where they have been around the expansion or partnership with the Apple, or whether it's all around the announcement of a new platform of hardware that's built for data and cloud. Those are the things you just want to keep moving forward forward. If you ask me one question about you know, So what is your business model? Our business models, always about shifting to higher value for clients and those for ourselves, and that's what I know our shareholders expect for the long term

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