IBM Launches New Lightweight AI Engine Targeting Enterprises and SMBs

IBM has introduced a new “Lightweight Engine” for its WatsonX.ai service, aimed primarily at enterprise users but also designed to provide a secure and scalable solution for small to mid-sized businesses (SMBs), especially in emerging sectors like fintech. This innovation enables companies to deploy generative AI in-house, effectively sidestepping potential regulatory hurdles that cloud solutions may face.

The generative AI market has been a significant driver of revenue growth in the tech sector during the first half of 2024. Just a decade ago, the rapid expansion of this sector, propelled by the popularity of large language models such as OpenAI’s ChatGPT and Anthropic’s Claude, was difficult to predict.

Before the advent of ChatGPT, many experts in AI and finance questioned the reliability and accuracy of large language models like GPT-3 for high-stakes applications in finance and other precision-dependent fields. Despite advancements following ChatGPT’s 2023 release, AI models trained on public data for general use continue to exhibit unpredictability.

To evolve beyond basic chatbots with limited coding capabilities, these AI models require specialization. For example, JPMorgan Chase recently acquired enterprise access to OpenAI’s ChatGPT for its 60,000 employees, allowing for customization with internal data and the implementation of specific guardrails. This acquisition underscores the financial services industry’s increasing adoption of generative AI.