The Globe and Mail reports in its Thursday edition that 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 per cent after hours on Wednesday. A Reuters dispatch to The Globe reports that concerns that AI tools will eat into the software business have grown with the launch of AI 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 IBM mainframes. Big Blue's revenue increased 9 per cent in the first quarter to $15.92-billion (U.S.), slower than the 12.2-per-cent growth in the previous quarter, even as it surpassed analysts; average estimate of $15.62-billion (U.S.). IBM's software segment, anchored by its high-margin hybrid cloud unit Red Hat, and a suite of AI tools under the Watsonx brand, also posted slower revenue growth of 11.3 per cent. CFRA analyst Brooks Idlet says stakes are higher than usual due to increased selling pressure in the software/services market amid AI competition fears. He says the latest result failed to validate those fears.