Analysts Predict Growth of IBM’s AI Consulting Business

IBM projects related to the development and other activities in the sphere of artificial intelligence will become the basis for the further development of this company.

Analysts Predict Growth of IBM’s AI Consulting Business

Bank of America confirmed the rating of the purchase of shares of the specified manufacturer and supplier of hardware and software, IT services, and consulting services. The financial institution paid special attention to the defensive portfolio of this company, the attractive dividend yield, and the artificial intelligence portfolio, which was characterized as undervalued.

Bank of America analysts led by Wamsi Mohan noted that IBM has been working on artificial intelligence apps for specific verticals for several decades. In May of this year, the company presented Watsonx, a machine intelligence and data platform through which customers can produce basic AI models and generate forms of digital thinking. In this case, artificial intelligence configurations are managed in one place in any cloud environment. This platform was developed in order to significantly simplify the deployment of artificial intelligence capabilities. Watsonx also allows you to make machine intelligence more scalable for businesses.

Bank of America kept the target price of IBM shares at $160. Analysts believe that artificial intelligence will become something like a factor of favorable impact on the consulting business of this company over the next two years. They predict that in 2024, this area of IBM’s activities will grow by $1 billion in financial terms. In 2025, analysts believe, there will be an increase in business in the amount of $2 billion.

Global investment bank RBC Capital, headquartered in Canada, has also started publishing about IBM with an outperform rating. Analysts of this financial institution were optimistic about the Watsonx platform, which is not only of purely technological importance but is also the basis for the company’s development in the long term. Also, the experts of the mentioned investment bank speak about the significant potential of IBM in the field of automation in the digital transformation of large firms. The probability that these forecasts will become reality is high since in this case, a company with large-scale capabilities operates in an obviously promising sphere.

In September, IBM released a new version of Watsonx. A set of innovations for this configuration of the artificial intelligence platform includes a technical preview of watsonx.governance, new AI information processing services coming to, and planned integration of basic models for individual software and infrastructure projects.

At the end of August, IBM and Salesforce announced the beginning of cooperation. The purpose of these partnerships was to provide businesses with assistance in implementing artificial intelligence for managing customer relationships. The companies stated that they are striving to accelerate the process of integrating machine intelligence and at the same time provide a high level of data protection.

As part of the cooperation, IBM Consulting will apply its experience and service delivery models. In this case, the company will guide customers to integrate and adopt the artificial intelligence technology of Salesforce. Consumers will also be able to get help through Watsonx.

Matt Candy, IBM Consulting’s global managing partner for generative AI, says that there is currently an exponentially growing need to increase employee productivity while simultaneously increasing the quality of customer service through speed, personalization, and convenience.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.