IBM CEO Arvind Krishna warns US needs AI ‘Goldilocks’ rule to compete

IBM CEO Arvind Krishna explores government surveillance of artificial intelligence, quantum computing and more in ‘The Claman Countdown.’
In an exclusive interview with FOX Business’ “The Claman Countdown,” IBM Chairman and CEO Arvind Krishna issued a direct warning to Washington: Finding a “Goldilocks” middle ground regarding the regulation of artificial intelligence is essential to maintaining American dominance.
“Look, I think we live in a regulated world and that’s good to have guardrails around innovation. When I looked, the bank regulators didn’t say that AI is a different technology. They were always going to control the use case, whether it’s in terms of payment or in terms of customer service. In health care, the same thing applies over government appslies always. Krishna explained hosting Liz Claman.
“And I’m going back to the balance between too many rules, too few,” he added. “We may not like the result, so we have to find a Goldilocks middle ground.”
As the US government scrutinizes AI models from tech giants like Google and Microsoft for national security risks, Krishna says that while “watchdogs” are needed, any reduction in government access will allow global competitors to seize the lead.
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The Big Tech executive emphasized that speed is the only way to win while acknowledging security-related concerns.
IBM’s Arvind Krishna delivers a keynote speech on March 11, 2025, in Austin, Texas. (Getty Images)
“This is always a balance between innovation and safety,” Krishna said. “As long as they’re going to make their judgment quickly within a few days or a few weeks, I think this serves everyone very well. If it turns into a bloated bureaucracy, that’s not going to be very good for us to win the AI race.”
“Anytime there’s an exciting new technology that’s going to open up billions in new revenue, billions in production, even more in terms of potential revenue, people are going to get behind it… I’ll just say it this way, in the next few months we’re going to separate the wheat from the chaff, and we think we’re part of something, and we can help find real value,” he said.
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According to an IBM report released on Tuesday, the company is touting the efficiency benefits of its largest global partners such as Nestlé – which achieved 83% cost savings and a 30x price performance improvement using IBM’s data system – and Quantum Leap, which reportedly recently reached a drug development milestone.
Despite the stock taking a 13% hit following headlines about competitors like Anthropic, Krishna told Claman that the fundamentals of IBM’s “AI Operating Model” remain strong, urging investors to look to hard data for “temporary noise.”
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“There will always be a market reaction where people are trying to figure out who will be the winners and who will be the losers over time. If there is not, I think, investors really understand our business and how we will find it as a breeze, not a storm, they really take it down,” said the CEO.
“At the end of the day, if businesses get value from our software and our infrastructure, and we have revenue growth and we can gain market share, then this to me sounds short-term or medium-term to some extent, and ultimately, the actual numbers will tell the story.”
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