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IBM Unveils Watson Data Kits to Speed Up Adoption of AI Apps

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International Business Machines Corporation (IBM - Free Report) recently unveiled Watson Data Kits that is aimed at accelerating artificial intelligence (AI) development. The first of the lot will cater to food, travel and transportation industries.

The company plans to make Watson Data Kits available by the second quarter of fiscal 2018. These will be powered with points of interest (POI) across various categories, such that users can zero-in-on the specific service they are searching.

As the name suggests, the data kits incorporate ‘clean’, ready-to-use organized industry-specific data. According to Kristen Lauria, General Manager of Watson Media and Content, "IBM Watson Data Kits can help bridge that gap by providing the machine-readable, pre-trained data companies require to accelerate AI development and lead to a faster time to insight and value.”

The clientele will also benefit from improved user engagement and well-versed decision making which is likely to lead to higher business value. Considering a broader outlook, the aforementioned features will create a hassle free environment for rapid AI adoption as the data kits strengthen the AI based applications with POI.

For Investors Know-How

IBM’s stock has lost 10.5% of its value over the past year, narrower than the industry’s decline of 11.6%.



Per a 2017 CloudFlower report, data scientists spend around 51% of their time collecting, labeling, organizing and cleaning data. Hence, a considerable amount of time is required to be able to obtain meaningful insights. This significantly decelerates the process of large scale implementation of AI adoption.

Furthermore, the report states that 48%, 51% and 60% of data scientists dislike collecting, labeling and “cleaning and organizing” data respectively. IBM’s new data kits provide the remedy to these problems by empowering the clientele with ready and cleansed data.

We must note that the number of companies using enterprise AI is increasing. Huge volume of data is being generated through a wide range of sources. The companies want to leverage AI to provide specific solutions and enhance solutions’ capabilities. IBM’s new Watson Data Kits provide a sorted ready-to-use data platform to the companies accelerating their AI processes.

Per a ResearchandMarkets report, the global AI market of food and beverage (F&B) industry is projected to grow at a CAGR of 42.18%. The forecast period is from 2017 to 2021.

Meanwhile, AI in transportation market is projected to grow at a CAGR of 17.87% from 2017 to 2030, per a MarketsandMarkets report.

The reports strengthen the prospects of Watson Data Kits. IBM recently launched Cloud Private for Data platform and formed a Data Science Elite Team to aid its clientele leverage AI.

To Conclude

The company is exploring the length and breadth across intertwined AI layers by providing solutions pertaining to specific industries. IBM is well poised to benefit from its growing presence in the enterprise AI market on an increasing clientele.

Zacks Rank & Key Picks

IBM currently carries a Zacks Rank #3 (Hold).

Veeva Systems Inc, (VEEV - Free Report) , DST Systems, Inc and Analogic Corporation are better-ranked stocks in the broader technology sector, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva Systems, DST Systems and Analogic Corporation have a long-term earnings growth rate of 17%, 10% and 7%, respectively.

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