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June 25, 2018 05:25 pm

Layoffs at Watson Health Reveal IBM's Problem with AI

Last month IBM, which has staked much of its future on its flagship AI Watson, announced a major round of layoffs in the division. Now the engineers who had been let go allege that the move shows that difficulties IBM is facing in turning its AI into a profitable business. A report on IEEE Spectrum says: "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: Phytel, Explorys, and Truven. These companies, acquired between 2015 and 2016, brought with them hefty troves of healthcare data, proprietary analytics systems to mine the data for insights, as well as their customers. The report adds: Two laid-off engineers from Phytel spoke to IEEE Spectrum in depth. They allege that IBM's leadership mismanaged their company since its acquisition, and say the problems at Phytel are emblematic of IBM's struggles to make Watson profitable. Several other Phytel employees corroborated the basic facts of their accounts. Both engineers worked for Phytel since before its 2015 acquisition, and say they were excited to become part of Big Blue. "Everyone expected that we would join IBM and be propelled by their support, that it would be the beginning of great things," says the first engineer.

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