Thursday, August 10, 2017

Why Everyone Is Hating on IBM Watson—Including the People Who Helped Make It (Gizmodo)

From a stark IBM Watson reality check

"IBM seems to believe the Watson brand can breathe new life into their company. And it sure could use some resuscitation right about now. IBM’s revenue has fallen for 22 consecutive quarters. In May, Warren Buffett dumped about a third of his IBM stock, citing “some pretty tough competitors.” Two weeks later, the Wall Street Journal reported IBM gave its remote employees the option to either move to a regional office or quit. (Since the decision affects more than 40 percent of its 380,000 employees, the article suggests it’s a way of cutting employees without official layoffs.) Then in July, investment bank Jefferies published a report cautioning IBM investors, suggesting the company won’t return value to shareholders because it can’t compete with other tech giants investing in AI.

Amazon, Apple, Facebook, Google, and Microsoft are all retooling their businesses around the belief that AI and machine learning are the future of the tech industry. IBM is in a more vulnerable position than all those companies. Even though IBM was an AI pioneer it has let its lead slip and damaged its reputation with overhyped marketing. There’s a rising sentiment in from tech and finance experts that, for all the idealism, Watson just can’t deliver on its promises."
Why Everyone Is Hating on IBM Watson—Including the People Who Helped Make It
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