IBM has launched Watsonx AI Labs, a New York City-based initiative designed to support AI developers and encourage AI adoption in businesses. The company acquired New York startup Seek AI again this week. It uses natural language to help analyse business data.
Launched in 2023, Watsonx created a powerful niche in the enterprise-generated AI landscape. AI Labs acts as a Startup Accelerator, providing expertise and access to Watsonx tools to AI developers' architectural business applications. The lab focuses on AI products that address enterprise challenges in areas such as customer service, supply chain optimization, cybersecurity, and responsible AI governance.
IBM said the choice to launch AI Labs in New York City would capitalize on the growth of the city's over 2,000 AI startups and the AI workforce. Seek AI will be housed in the same Madison Avenue Innovation Centre as AI Labs. In addition to being the basis of AI Labs' efforts, AI will work with IBM clients to deploy AI across the automation platform.
“By building the fundamentals of Watsonx AI Labs, we can combine the building expertise data agent with IBM's engineering depth to solve the most demanding AI challenges for our clients,” Sarah Nagy, CEO of Seek AI, said in a statement.
Suzanne Livingston, vice president of IBM's Watsonx and co-founder of AI Labs, said the company's goal is to encourage and support developers at every stage, from students to industry veterans.
“One of the challenges with adopting Enterprise AI is developing the best use cases and the best starting points,” Livingston said in an interview with Informa TechTarget. “There's a lot of interactions and discussion and discussion that happens when you're dealing with clients. We thought it would be helpful to have a lab where you can come – and it doesn't have to be a client or a partner, it may be a student doing a project in school, it may have access to a group that has expertise and gets their feedback.”
Although it retains a small portion of its overall market share, the company reports strong numbers for its generative AI business. In April, IBM CEO Arvind Krishna told investors its generative AI “business books are at a standard of over $6 billion, with over $1 billion quarterly growth.”
AI Hotspot Targeting
Vendor-funded incubator and lab ideas to encourage startups are not a new concept. Large tech companies have used similar strategies for many years, especially in Silicon Valley.
IBM is leveraging the supply of known companies and they want to be a preferred supplier. So it's certainly a win-win.
Bob O'DonnellCEO and Chief Analyst of Technology Research
Instead of Silicon Valley, IBM focuses on AI MindShare in New York City, according to Bob O'Donnell, president and chief analyst at Technalysys Research.
“IBM is leveraging the supply of known companies and they want to be the preferred supplier, so that's certainly a winner,” he said. “For many of these startups, IBM may not be the first name to come to mind in AI. This is a way to show that they are doing the latest and cutting edge.”
He added, “It's a strategically placed, progressive and positive investment.”
O'Donnell said he expects other companies using other companies in other hot AI spots to use other hot spots across the country.
Livingston said IBM's AI Lab in New York might be the first time for the company, but that may not be the last. “If you get this model correctly in New York City, you'll definitely get it if you go to another area,” she said.
A veteran journalist with over 20 years of experience, Shane Snider covers IT infrastructure with Informa TechTarget.
