These days, it’s almost impossible to keep up with artificial intelligence (AI), but I try to stay updated by testing a new AI application every week to learn more about its potential.

This week, I tested SignGuard—an AI tool that uses deep learning to distinguish between genuine and forged signatures.  I’ve tried it a few times, and while it’s still not perfect, this tech will improve rapidly over the next few years. This might not seem that impressive on the surface, but signature verification is a $9.39 billion market. Every bank and legal office in the world needs this tech to prevent fraud.  

As AI continues to advance, we will see more and more companies integrate tech like SignGuard into their operations, and that $9.39 billion market is tiny compared to enterprise AI as a whole. Grand View Research estimated the global AI market size will reach $733.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.2% from 2020.

This increasing demand for AI solutions across various industries is what makes IBM’s latest announcement all the more intriguing. Last week, IBM unveiled its new generative AI platform, Watson X, the latest iteration of its AI platform that first launched in 2011.

Watson X will enable enterprises to design and customize AI agents specifically tailored to their operational and business needs. With Watson X, organizations can harness the power of AI to collaborate with customers, automate workflows, strengthen threat protection measures, and even advance their sustainability initiatives.

This platform represents a significant step forward in the enterprise AI landscape, offering companies the opportunity to leverage cutting-edge technology to drive innovation and achieve their business objectives. IBM even announced plans to replace 7,800 jobs with AI over time and paused hiring across various positions—that’s how serious they are about this tech’s impending takeover of our workforce.

However, I’m not so sure that Watson X will make a big difference to IBM’s bottom line. IBM is not the first to offer customizable AI solutions for enterprises. One analyst at Constellation Research, Andy Thurai, said IBM is just “catching up.”

IBM lacks a strong AI ecosystem compared to its rivals, which will stifle its ability to compete. One example is the Watson code assistant, which launched after Amazon’s CodeWhisperer, Google’s Bard, and Microsoft’s GitHub Copilot already stole the show.

Moreover, IBM reported only 3% revenue growth in its data and AI division during its latest earnings call. While management was optimistic about this growth rate, it’s not enough to serve as a major investment catalyst.

Despite more than a 10-year head starts with Watson, IBM is failing to prove its worth in the AI market. It has yet to capitalize on its early lead in AI and the division has made several mistakes, including a failed attempt to enter the healthcare sector after spending over $5 billion on acquisitions for a 7,000-employee department.

If you’re looking to capitalize on the $15.7 trillion market that artificial intelligence (AI) will create in the coming years, there are better options than IBM.

In fact, Nick Black has a list of four potential 10X to 100X investments in the AI space that are far more impressive than anything IBM is doing.

I’ll let Nick give you the whole story…

Take care,

Alex Kagin

Director of Technology Investing Research, Money Map Press


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