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4 A Letter from the Chairman
Cognitive includes—but is broader than—
artifi cial intelligence, machine learning and natural
language processing. And its embodiment
is Watson.
Watson has come a long way since it won
on the American quiz show Jeopardy! in 2011.
Back then, it did one thing: natural language Q&A,
powered by fi ve technologies. Today, Q&A is
just one of more than 30 Watson capabilities—
all of which have been turned into digital services,
or application programming interfaces (APIs),
delivered via the cloud. This means that we can
literally build cognition into everything digital.
With Watson, every digital application, product
and process can understand, reason and learn.
You can see why cognitive is becoming the
heart of our solutions businesses. What started
as one Watson unit is now a growing family:
the core Watson team, which continues to build
new capabilities and nurture its expanding
ecosystem; and individual Watson businesses,
aimed at particular industries or professional
domains, such as IBM Watson Health and
IBM Watson Internet of Things. Each business
brings together Watson capabilities with industry
expertise, vast data sets and an ecosystem
of partners and clients, and each is powered
by the IBM Cloud.
Our Solutions Are Cognitive Data is the world’s
new natural resource, and it is transforming
all industries and professions. IBM has been
building and acquiring the capabilities
necessary to lead in data and analytics,
deepening our industry expertise and growing
partnerships and ecosystems. Today, our data
and analytics business is the industry leader,
generating revenue of $18billion in 2015.
This is a strong and growing business—
but its potential is actually much greater.
That potential lies in the 80percent of the
world’s data that is unstructured: everything
we encode in language—from textbooks
and formulas to literature and conversation—
plus all digital video, audio and images. This
unstructured data has been essentially
invisible to computers. They can capture, store
and process it, but they cannot understand
what it means.
But with cognitive technology, we can now
probe this “dark data.” Cognitive systems
can ingest it all, and they can understand its
meaning, through sensing and interaction. They
can reason about it, generating hypotheses,
arguments and recommendations. And unlike
any computing system we have known, they
are not programmed. Rather, they learn—from
training by experts and from their own
experience. In fact, they never stop learning.