IBM's AI Business Soars as Watson and Consulting Drive Growth
• IBM's artificial intelligence (AI) business is booming, driven by its Watson AI platform and consulting services to help clients implement AI.
• Demand for IBM's generative AI offerings has soared, with hundreds of millions in client commitments.
• IBM is leveraging its AI software and consulting to solve problems like helping banks maintain old COBOL code.
• AI is still a small part of IBM's business but has major growth potential, with Gartner forecasting $300B in AI software spending by 2027.
• IBM stock remains inexpensive compared to its cash flows, and success in AI could accelerate growth.