As Head of IBM Consulting, Mohamad Ali led one of the most ambitious enterprise AI transformations to date. When he rejoined the company, he turned IBM into its own “Client Zero,” testing every idea internally before bringing it to market. The effort began with massive hackathons involving 150,000 employees, designed to turn curiosity into capability and build belief at scale.

Mohamad breaks down the three pillars that made it work: leadership that deeply understands AI, a willingness to redesign core processes, and broad employee engagement. The results were measurable and market-moving: $3.5 billion in cost savings, an eight-point business turnaround, and a doubling of IBM’s stock price.

Jeremy and Henrik unpack why IBM’s model may signal the future of consulting—organizations that act as their own laboratories for change. They reflect on how applied AI is emerging as its own discipline, where the challenge isn’t building models but re-architecting systems, workflows, and culture around them.

Key Takeaways:

• Start with Yourself: “Client Zero” Works
  IBM transformed internally before advising clients, using its own systems as a testing ground. This allowed the team to validate AI tools, workflows, and cultural shifts in real conditions, creating credibility and clarity before going to market.
• Transformation Needs More Than Tech
  Success came from a mix of technical leadership, process redesign, and cultural momentum. AI wasn’t just layered on; it was embedded into workflows, backed by leadership buy-in, and powered by 150,000 employees who participated in company-wide hackathons.
• Digital Labor Is Reshaping Business Models
  IBM didn’t just automate tasks. It redeployed 40% of HR into billable consulting roles. This shift points to a new model for consulting and services, where hybrid human plus AI teams redefine how value is delivered and monetized.
  Measure and Share the Impact
  Transformation became real when IBM tied outcomes to business metrics. By reporting $3.5 billion dollars in savings and tracking results with the CFO, IBM showed how to make AI adoption tangible, accountable, and visible to both employees and investors.

LinkedIn: Mohamad Ali - IBM | LinkedIn
IBM: IBM

00:00 Intro: HR Automation
00:41 Introduction of Mohamed Ali and IBM's Transformation
01:14 IBM's Enterprise Transformation
01:41 The Role of AI in IBM's Success
03:25 Rejoining IBM: A Strategic Decision
04:33 Key Components of AI Implementation
07:21 Employee Engagement and Hackathons
08:59 Technical Leadership and AI
10:37 Global Tax Optimization with AI
11:17 Scaling AI Solutions for Clients
22:00 Monetizing Digital Labor
26:50 Digital Labor and Procurement Projects
27:29 Unbundling and Economic Implications
28:44 Technological Shifts and Market Expansion
30:04 AI-Powered Business Transformations
32:22 Case Study: L'Oreal's AI Integration
39:13 HR Automation and Redeployment
42:09 Creative Innovations in AI Applications
43:59 Advice for Leaders on AI Integration
45:43 Final thoughts

📜 Read the transcript for this episode:

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Henrik: https://www.linkedin.com/in/werdelin
Jeremy: https://www.linkedin.com/in/jeremyutley

Show edited by Emma Cecilie Jensen.