IBM targets AI cost optimization with updates to Bob developer tool

New features for IBM Bob aim to provide greater oversight of AI usage and improve resource allocation

IBM logo illuminated in white against a black background at the company's exhibitor stall at Mobile World Congress 2025.
(Image credit: Getty Images)

IBM has announced a series of updates to its IBM Bob software development tool, with a particular focus on better managing token consumption.

The move marks the first big batch of updates for the agentic development tool, which rolled out earlier this year. Bob will now offer multi-agent capabilities, the company said, alongside built-in AI cost and usage analytics features.

According to IBM, the new ‘Bobalytics’ feature will enable developers to monitor AI token consumption, streamline resource management, and improve visibility in terms of how AI tokens are consumed by teams.

Sub-agents and multi-agent capabilities will also play a key role in reducing costs, according to IBM. Sub-agents are those that operate under the direction of another to handle specific tasks within a larger workload.

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The advantage here is that these dedicated agents will work in an “isolated context” within broader workloads to complete tasks in a more efficient manner, ultimately reducing costs.

Multi-agent features also contribute on this front, according to Michael Kwok, VP of IBM Bob. In a blog post detailing the updates, Kwok noted that Bob will now call on specific tools based on the underlying model, allocating agents depending on the intensity of tasks and associated costs.

“Parallel tool execution can significantly reduce the time required for complex tasks involving multiple searches, file operations and validation steps,” Kwok explained.

“Subagents improve efficiency by performing specialized work in isolated context before returning only the relevant results, while background tasks allow long-running work to continue without interrupting the developer’s workflow.”

AI cost optimization in the spotlight

The move by IBM comes amidst a sharpened focus on AI token consumption - and spiralling costs - by enterprises globally. As ITPro reported in June, the ‘tokenmaxxing’ trend has landed some organizations with eye-water bills.

Uber, for example, blew through its entire annual AI bill in just four months after incentivizing staff to ramp up use of the technology.

Developer teams are also contending with rising costs on this front, as Gartner told ITPro in late June. The consultancy projects that token costs could exceed engineer salaries by 2028 based on current usage rates.

Speaking to ITPro at the time, Nitish Tyagi, senior principal analyst at Gartner, said engineering teams are adopting a range of cost optimization practices to reduce the impact of token consumption.

New ‘premium packages’ for IBM Bob

IBM also unveiled three new specialized workflows for Bob aimed at driving Java, IBM Z, and IBM i operating system (OS) modernization. These capabilities come in separate ‘premium packages’, according to the firm, offering enterprises domain-specific versions of the tool.

“Modernizing a Java application requires different knowledge, tools and workflows than working with IBM i systems or mission-critical mainframe applications. Each environment carries its own architecture, runtime assumptions, integration patterns, validation needs and operational constraints,” Kwok explained.

“Premium Packages bring domain intelligence and decades of enterprise expertise directly into Bob while maintaining a consistent developer experience.”

The premium package for Java, for example, will help automate migration processes, allowing teams to move to more recent versions of the programming language. Bob will essentially guide users through the process, while also assisting with broader modernization practices.

This includes automated compatibility testing and the ability to identify and remediate vulnerabilities.

The premium package for IBM Z, meanwhile, will provide teams with a helping hand during mainframe modernization projects. The Z Code Mode feature, for example, will help “explain, generate, modify, refactor, and transform mainframe application code”.

Efforts to streamline mainframe modernization by the firm come after a high-profile spat with Anthropic earlier this year.

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Ross Kelly
News and Analysis Editor

Ross Kelly is ITPro's News & Analysis Editor, responsible for leading the brand's news output and in-depth reporting on the latest stories from across the business technology landscape. Ross was previously a Staff Writer, during which time he developed a keen interest in cyber security, business leadership, and emerging technologies.

He graduated from Edinburgh Napier University in 2016 with a BA (Hons) in Journalism, and joined ITPro in 2022 after four years working in technology conference research.

For news pitches, you can contact Ross at ross.kelly@futurenet.com, or on Twitter and LinkedIn.