Layoffs at Watson Health Reveal IBM’s Problem with AI

Axed engineers say IBM isn’t always smart about artificial intelligence

IBM, a venerable tech company on a mission to stay relevant, has staked much of its future on IBM Watson. The company has touted Watson, its flagship artificial intelligence, as the premier product for turning our data-rich but disorganized world into a smart and tidy planet.

Just last month, IBM CEO Ginni Rometty told a convention audience that we’re at an inflection point in history. Putting AI into everything will enable businesses to improve on “an exponential curve,” she said—a phenomenon that might one day be referred to as “Watson’s Law.”

But according to engineers swept up in a major round of layoffs within IBM’s Watson division last month, the company’s promotions of its “cognitive computing” platform mask its own real difficulties in turning its AI into a profitable business.

“IBM Watson has great AI,” one engineer said, who asked to remain anonymous so he wouldn’t lose his severance package. “It’s like having great shoes, but not knowing how to walk—they have to figure out how to use it.”

The layoffs at the end of May cut a swath through the Watson Health division. According to anonymous accounts submitted to the site Watching IBM, the cuts primarily affecting workers from three acquired companies: PhytelExplorys, and Truven.

All three companies, acquired in 2015 and 2016, brought with them hefty troves of healthcare data as well as proprietary analytics systems to mine the data for insights. The companies also brought existing customers: healthcare providers that used the analytics to improve both their care and their finances.

By Eliza Strickland | IEEE Spectrum

Illustration Credit: IEEE Spectrum

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About Peter Coffaro 524 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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