The information provided in Jefferies’ report isn’t new nor groundbreaking but it’s a strong signal that Wall Street is beginning to pay more close attention to the challenges facing IBM Watson. I’ve listened to my fair share of IBM earnings calls and it’s clear the market has been focusing too heavily on short run growth and not enough on long term technological or strategic sustainability. It seems perfectly reasonable that IBM shot out of the gates like a rocket in a mostly sterile AI market selling to CTOs and newly minted chief data officers with just enough anxiety to open check books. But the reality is that AI isn’t an amorphous black hole that sucks in unstructured data to produce insights. A solid data pipeline and a domain specific understanding of the AI business problem at hand is table minimum.

https://techcrunch.com/2017/07/13/jefferies-gives-ibm-watson-a-wall-street-reality-check/