IBM is making a bold move by betting big on generative AI. The company’s CEO, Arvind Krishna, believes that despite the challenges posed by the current economic climate, technology spending will continue to outpace GDP. During an earnings call, Krishna stated that IBM has seen good revenue growth in software and consulting thanks to clients adopting their Watson AI and data platform as well as their hybrid cloud solutions.
In the last quarter, IBM’s total revenue increased by 4.6% to $14.8 billion, with data and AI revenue growing by 6% year-on-year. This success has prompted the company to make big bets on generative AI, in response to customer demand. Krishna highlighted three emerging use cases for AI: code modernization, customer service, and digital labor. IBM has released products to address these use cases in the past three months.
IBM’s focus on generative AI is driven by the desire to unlock productivity and operational efficiency for its clients. By utilizing AI technology, businesses can streamline their operations and achieve tangible benefits. This strategic move positions IBM as a leader in the AI field and sets them up for strong revenue and cash flow growth.
With its dedication to innovation and investment in generative AI, IBM is well-positioned to thrive in an increasingly competitive market. As businesses look for ways to optimize their operations, IBM’s AI solutions offer a compelling option. The company’s commitment to providing value to its clients and staying ahead of technological advancements ensures that IBM will be a force to be reckoned with in the future.
What do you think of IBM’s bet on generative AI? Do you believe that AI will truly revolutionize industries like code modernization, customer service, and digital labor? We would love to hear your thoughts and opinions on this exciting development. Leave a comment below and join the conversation!
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