Artificial intelligence (AI) is both a helpful technology and an incredibly complicated one. AI agents take both qualities to the next level. These AI programs don’t execute detailed instruction prompts. Instead, they pursue a defined goal autonomously. They break down their job into several smaller tasks and can take many steps of problem-solving action to reach the destination.
I suppose anyone can manage a handful of these AI agents. But what if your business deploys them on a large scale? A virtual army of specialized AI agents can get a lot of work done, perhaps even collaborating when their project goals intersect. Training, targeting, and tracking these agents can become difficult in a hurry.
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And that’s where International Business Machines (NYSE: IBM) comes in. Big Blue just released an AI agent management platform called Watsonx Orchestrate. This tool will help enterprise-class companies create, direct, and evaluate the performance of AI agents. It even taps into the Watsonx.data system to select the right business data to use for each AI agent project.
Is this just another collection of AI buzzwords, or a game-changing innovation? Let’s take a look.
Image source: Getty Images.
IBM Watsonx Orchestrate is built for the big leagues
The Watsonx Orchestrate platform will be available in June 2025. It wasn’t designed for hobbyists or small businesses, but for deep-pocketed enterprise customers. This heavyweight solution can run on IBM’s mainframe systems, or on a connected network of high-end x86 servers.
That makes sense, since the client also needs some beefy hardware to run the resulting AI agents. Keeping the whole setup close to the customer’s most important business data also puts the whole orchestration system at the heart of the data center.
Again, this platform isn’t a toy. It was built to support the business decisions and operations of very large companies.
What sets Watsonx Orchestrate apart
The company certainly treated this launch with respect. I attended a remote chat presentation featuring IBM CEO Arvind Krishna, no less. And why not? If AI agents are the future of business-class artificial intelligence, then Watsonx Orchestrate becomes the core of any full-featured AI shop.
And this tool features the business-oriented qualities that set the Watsonx generative AI platform apart from competitors in the first place. Users can track how data moves through this system from raw sensor outputs and sales trends to actionable business recommendations. Building a new AI agent can be done in minutes, relying on a large portfolio of predefined templates. The whole system is wrapped in ironclad data security — you won’t find Watsonx Orchestrate’s AI agents leaking sensitive business information outside the office.
Wall Street shrugs, but you might want to pounce
IBM’s stock posted a modest gain of 1.7% on this announcement. The broader stock market was pretty quiet as the S&P 500 (SNPINDEX: ^GSPC) index rose by just 0.5% on the same day.
So Wall Street didn’t necessarily see a game-changing product announcement here, but that could be a mistake. Other tech titans will surely come up with their own AI agent management tools over time, but I don’t think they will match IBM’s strict focus on data quality and security. IBM claimed that 90% of enterprise data is unstructured and distributed across messy systems like email or video presentations. Funneling this disorganized information into large language models (LLMs) can make it all searchable and easy to analyze with AI agents — but most corporations have barely started to explore this idea.
Watsonx Orchestrate and its AI agents can help, and I think this will be a significant business driver in the coming years. IBM’s AI strategy is one of those overnight successes that were years in the making, and it’s going through those formative years of innovation right now. The investor-friendly payoff will come later, and I highly recommend grabbing some undervalued IBM shares before the market rush arrives.
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Anders Bylund has positions in International Business Machines. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.
