Is IBM Watson ‘outgunned’ in Artificial Intelligence battle?

The scathing report comes from Wall Street analyst firm Jefferies & Co.’s James Kisner, who argued that IBM is being “outgunned” in the battle for artificial intelligence, even though he says Watson is one of the “most complete” AI offerings in the field.

“Our checks suggest that while IBM offers one of the more mature cognitive computing platforms today, the hefty services component of many AI deployments will be a hindrance to adoption,” Kisner, Jefferies’ senior vice president of IT hardware and communications infrastructure equities research, said in a research note. “We also believe IBM appears outgunned in the war for AI talent and will likely see increasing competition. Finally, our analysis suggests that the returns on IBM’s investments aren’t likely to be above the cost of capital.” Read the full article here.