Back to top

Image: Bigstock

IBM Launches Watsonx.governance to Optimize AI Management

Read MoreHide Full Article

International Business Machines Corporation (IBM - Free Report) recently unveiled watsonx.governance, a new addition to its WatsonX AI solution suite, aimed at enhancing the management and monitoring of AI models, whether generated from IBM or other open-source communities.

Despite numerous benefits, multiple issues contribute to reluctance among enterprises regarding AI capabilities. Advanced large language models and machine learning models that power generative AI come with certain risks and complexities. These models often need substantial amounts of data for training, and the presence of biased data in the model input can lead to unfair or discriminatory outcomes. This lack of transparency also raises concerns about accountability, making it difficult for analysts to comprehend the reasoning behind a model's specific decisions.

The watsonx.governance effectively addresses these concerns. It enriches enterprises with necessary toolkits that automate AI governance processes, enabling corrective actions to mitigate risks and biases. Integration of this cutting-edge software will augment visibility and streamline the deployment of any mix of LLM models into business operations.

As many organizations deal with confidential information in their daily operations, malicious activities can manipulate input data and impact model outcomes, which can have real-world consequences. IBM also recognizes the evolving regulatory environment and compliance requirements in the context of AI usage. To address these challenges, it is combining the automated governance capabilities with its expert consultants and strategic partners to craft a human-centric design. This approach significantly improves accountability and transparency in the AI ecosystem and simplifies risk management while addressing cybersecurity and regulatory concerns.

IBM is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting segments. The company’s growth is expected to be driven primarily by analytics, cloud computing and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability.

IBM is betting big on the Watsonx platform, which is likely to be the core technology platform for its AI capabilities. Watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI: the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store, built on an open lake house architecture, and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.

The stock has gained 4.1% over the past year compared with the industry’s rise of 2.4%.

Zacks Investment Research
Image Source: Zacks Investment Research

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

Stocks to Consider

Model N Inc (MODN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 3.33%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance.

NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1, delivered an earnings surprise of 9.79%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 29.19%.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus has evolved from PC graphics to artificial intelligence-based solutions that support high-performance computing, gaming and virtual reality platforms.

Arista Networks, Inc. (ANET - Free Report) , presently carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.

ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.

Published in