IBM has launched watsonx AI Labs in New York City, an innovation hub designed to accelerate AI adoption and co-create AI solutions with clients.

Located at One Madison, the lab aims to collaborate with startups and enterprises to develop domain-specific AI applications that address challenges in customer service, supply chain optimization, cybersecurity, and responsible AI governance.

Over the next five years, IBM will support local startups by providing access to technical experts, mentorship, and potential investment from IBM Ventures and its $500 million Enterprise AI Venture Fund.

This initiative has been recognized as a significant investment in New York's innovation ecosystem, enhancing the city's status as a global hub for responsible AI development.

AI job roles in New York have increased by 39% from January 2023 to January 2024, reflecting the city's growing importance in the AI sector.

New York City is home to over 2,000 AI startups and has seen a 25% growth in its AI workforce from 2022 to 2023, solidifying its position as a key player in the global AI landscape.

Since 2019, more than 1,000 AI-related companies in New York City have collectively raised $27 billion in funding, showcasing the robust investment environment.

Ritika Gunnar, IBM's General Manager for Data & AI, emphasized that watsonx AI Labs will provide AI developers with access to top-tier engineering talent and resources to build transformative business applications.

The lab's focus on Agentic AI, which connects generative AI models to various applications and data sources, aims to enhance data utilization and effectiveness.

The concept of co-design in AI projects may shift financial risk to clients, as it involves joint development of solutions between clients and vendors.

Following the challenges faced by Watson, IBM restructured its AI strategy in 2023, shifting its focus to the watsonx platform, which has positively impacted the company's growth.

IBM's previous AI system, Watson, gained fame in 2011 but encountered significant setbacks, including a failed cancer treatment project that cost $62 million.