UPDATED 01:22 EDT / NOVEMBER 02 2016

NEWS

IBM acquires Watson-based cognitive shopping assistant XPS

IBM Corp. has acquired Watson-based cognitive shopping assistant Expert Personal Shopper from digital commerce firm Fluid Inc. for an undisclosed sum.

Built using machine learning and artificial intelligence to deliver expert advice that sounds like it’s coming from an actual human, XPS is aimed at assisting customers in their research before making a purchase.

“Understanding that Watson and other AI technologies could mimic human thinking and decision making, we focused on where the most human retail experience was–and that was in a physical store,” Fluid explained in a blog post. “We knew that shoppers in-store could receive expert assistance in discovering products for their specific needs, which was much more labor-intensive when the shopping happened online.”

The platform delivers a two-way, real-time conversation where shoppers can express what it is they want and then receive help and recommendations based on what they have asked, including product details and recommendations based on data the platform has gathered through previous interactions and from data provided by the retailer.

According to ZDNet, the platform will be offered as part of IBM’s software as a service portfolio within the IBM Interactive Experience division and the acquisition includes XPS team members who will join IBM iX. XPS clients The North Face Inc. and 1-800-Flowers.com Inc. will also be coming across with the deal.

Expansion

The acquisition of XPS is part of a broader push by IBM to expand the range of services available on Watson, including through strategic investments and in-house development.

“IBM is, in many respects, wagering its business future on Watson, the well-known technology platform that uses artificial intelligence and machine learning to glean insights from large amounts of unstructured data” SiliconANGLE Media’s theCUBE co-hosts John Furrier and Dave Vellante said on a discussion panel at the IBMWOW conference last week.

“Moore’s Law is not the same driver it used to be … [rather] it’s the combination of AI, mobile and big data that are reshaping the innovation curve,” Furrier said.

While noting that IBM can’t go head-to-head with Amazon’s cloud, the pair noted that they are instead competing up the stack in high-margin business. “While some companies may have more advanced AI, IBM is mopping up the floor … with its services and industry focus and its cloud. If it can get traction in AI, it’s going to be so much more ahead of the game,” Vellante added.

Here’s the full video of Watson’s importance and place in IBM’s future:

Image credit: Clockready/Wikimedia Commons/ CC 3.0

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