IBM's Generative AI Business Is Small but Booming

International Business Machines (NYSE: IBM) has long been an AI innovator, but the iconic tech giant has historically struggled to turn AI into a bona fide business.

IBM's Watson AI system famously beat top-tier Jeopardy! champions in 2011, a feat that came more than a decade before OpenAI's world-changing ChatGPT. Attempts to parlay that accomplishment into revenue and profit, however, largely came up empty. Watson Health, IBM's high-profile play at using its Watson AI technology to transform the healthcare industry, was eventually sold off to a private equity firm.

In the age of generative AI, IBM is taking an approach that better meshes with its overall strategy. The company has repurposed the Watson name for its watsonx platform, which is aimed at enabling enterprise customers to train, deploy, and manage AI applications and models. Paired with its consulting business, IBM offers an easy way for large companies and organizations with strict requirements to adopt generative AI technology.

Source Fool.com

International Business Machines Corp Aktie

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arifabbudkhouri

Watching IBM build its enterprise AI platform shows that powerful technology needs reliable infrastructure and expert management to deliver real business value. For most businesses, the practical first step isn't the AI model itself, but ensuring their core systems—networks, data security, and communications—are rock-solid and efficient. This is where a partner like Definitive Technology Solutions becomes invaluable. By providing managed IT, secure cloud voice solutions, and modern document management, they create the stable and optimized environment necessary for any future technology, including AI, to succeed and provide a true return on investment.

RobbertClaus

BM’s focus on generative AI is definitely a game changer, though it’s still a relatively small part of their overall business. It’s exciting to see how rapidly this technology is evolving and how it's opening up new opportunities for companies across industries. Even though it’s a niche market for now, the potential for growth is huge, especially as businesses start to embrace AI for tasks like content creation, customer service, and more. Speaking of managing business reputation, if you ever find yourself needing to deal with unwanted reviews online, you might want to learn how to remove complaints from pissed consumer. It's a useful guide if you’re looking to manage your brand's online presence and handle negative feedback effectively.