IBM’s Watson AI Platform Gains Industry Reach



Watson AI platform

International Business Machines (IBM) is gaining market traction in the AI (artificial intelligence) technology space, driven by its cutting-edge Watson AI platform. The company’s growing cloud business is embedded with AI technology.

IBM’s Solutions Software product offerings, which are part of the Cognitive Solutions segment, are driven by Watson Health, Watson Financial Services, and Watson IoT. Watson Financial Services is buoyed by the RegTech (regulatory technology) and Commercial Payments offerings. Large financial institutions such as JPMorgan Chase (JPM) are using AI for risk management and portfolio optimization.

Growing demand for the Watson AI platform in the health and financial service industries remains a key driver of the Cognitive Solutions segment. From the graph above, we can see the revenue growth of the Cognitive Solutions segment for IBM in the last four quarters. 

In the last two quarters, IBM witnessed a stable growth trend driven by the Watson AI platform. With growing adoption across the industry, IBM can boost its Cognitive revenue growth.

In 4Q17, segmental revenues grew 2.5% YoY (year-over-year) to $5.4 billion triggered by security and transaction processing software. However, the Solutions Software unit fell 1.0% YoY, despite strong growth in Watson solutions and security.

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Watson Health

IBM’s Watson Health is the company’s most successful AI platform. It possesses huge amounts of data—nearly 210 million records on clinical trials and claims. The demand for Watson Health is growing in local government agencies, as well as in life sciences and oncology.

In fiscal 2017, the AI health platform has already covered around 115,000 people, and Watson AI on Oncology is now available in more than 150 hospitals and health organizations. Daimler, the leading manufacturer of commercial vehicles, is also using Watson AI IoT for its self-driving car routes.


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