IBM’s slower revenue growth fans AI worries

IBM’s revenue growth slowed in the first quarter on sluggishness in its software business, fanning fears of disruption from artificial intelligence tools and sending its shares down 6.5% after hours on Wednesday.

Concerns that AI will eat into the software business have grown with the launch of tools that can automate routine corporate functions.

IBM has ‌especially been ⁠hit after ⁠Anthropic said in February one of its tools could help modernize COBOL, a language widely used on the company’s mainframes.