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The graph shows on the
horizontal axis the percentage

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of questions answered,
and on the vertical axis,

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the percentage of answers
that were correct.

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When Watson started, the graph
that shows its performance

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is shown here.

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In 2007, we observed that the
performance of Watson improved,

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and it is shown there.

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And then successively
from 2008 May to 2010,

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we see the successive
improvement of Watson

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in this graph that shows a
trade-off between questions

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answered and precision.

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This is the area of
the best human players.

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Observe that they answer
a high number of questions

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and they answer a very high
number of questions correctly.

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So it was at that time--
2010-- that the people that

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controlled the decision
decided that Watson

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is ready to enter
the competition.

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So the games were scheduled
for February 2011.

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Two games were
played, and the winner

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would be the contestant with the
highest winnings over the two

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games.

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Once we got into the game, it
was nerve-wracking, frankly.

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Brad, if you're ready,
make your first choice.

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Let's take "Alternate
Meanings" for $200, Alex.

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"4-letter word for a
vantage point or a belief."

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Brad.

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What is a view?

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Yes.

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After the first clue of
the game, which Brad won,

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I had just this horrible
feeling at that moment

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that he was as good as
everyone said he was,

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and he was just going to
run the whole board on us.

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"Alternate Meanings," $400.

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"4-letter word for the iron
fitting on the hoof of a horse

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or a card-dealing
box in a casino."

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Watson.

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What is shoe?

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You are right.

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We actually took the lead.

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We were ahead of them.

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But then we started getting
some questions wrong.

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Watson.

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What is leg?

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No, I'm sorry, I
can't accept that.

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What is 1920s?

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No.

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What is chic?

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No, sorry.

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Brad?

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What is class?

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Class, you got it.

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Watson.

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What is Sauron?

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Sauron is right,
and that puts you

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into a tie for the
lead with Brad.

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A lot of people
were feeling good

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because Watson held his own
and was doing pretty well.

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But I wanted to be winning.

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Too close for comfort.

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Ken, you're in third place.

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That means you go first
in "Double Jeopardy."

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The "Double Jeopardy" round
of the first game I thought

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was phenomenal.

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Watson went on a terror.

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Watson.

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Who is Franz Liszt?

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You are right.

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What is violin?

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Good.

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Who is The Church Lady?

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Yes.

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Watson.

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What is narcolepsy?

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You are right.

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And with that, you
move to $36,681.

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After the first game, we have
a pretty good commanding lead,

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but we've seen enough
Jeopardy to know

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that this is not a lockout.

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Welcome to the deciding game
in the IBM Challenge here

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on Jeopardy!.

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The second game was
a whole other story.

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We struggled some
at the beginning.

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"Actors Who Direct" for $1,000.

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"A Bronx Tale."

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Brad.

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Who is Robert De Niro?

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Correct.

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That was an awful
category because Watson

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got every single one right,
but was just a little too slow.

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Ken.

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Who is Denzel Washington?

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You got him.

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Ken and Brad were getting
the answer in a second.

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"Rocky II", "III", & "IV."

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Brad.

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Who is Sylvester Stallone?

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Correct.

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Even with 2,800 cores, it took
us 2 1/2 seconds or 3 seconds,

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and that just gives you a sense
of how incredible the human

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brain is-- how quickly it
could understand the category,

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what's being asked.

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Boom!

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And get the answer.

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Who is Sean Penn?

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Right.

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Ken was doing very well.

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And the risk was if Ken gets
a "Daily Double," that's big.

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Gets it right, he's
going to be well ahead.

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And then with that kind of lead
going into "Final Jeaoprady"--

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if he bets enough, he could
end up winning the match.

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"A camel is a horse
designed by this."

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Ken.

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What's a committee?

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Good.

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"Familiar Sayings" for $2,000.

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We've gotta find that
last "Daily Double."

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I was nail-biting.

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It was just intense.

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Because these guys were good.

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Ken.

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Who is the brain?

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Brain, yes.

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There was a crucial
moment in the game.

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There was still a "Daily
Double" on the board

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and it was starting to
become pretty clear that it

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was in the "Legal E's" category.

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Let's go to "Legal
E's" for $1,200.

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"This person is
appointed by a testator

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to carry out the directions
and requests in his will."

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Watson.

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What is executor?

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Right.

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Same category, $1,600.

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Answer-- "Daily Double."

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That was the moment
when I knew it's over.

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Let us look at the
results of the game.

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Looking at these numbers,
it is fair to say

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that Watson's victory over
the two best human players

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has been a decisive one.

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In the first day,
Watson's winnings

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were more than double the sum
of the winnings of both players.

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And in the second day, it
was more than their sum.

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Overall, the winnings for
Watson were almost double

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the sum of the winnings
of both players--

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a rather decisive victory.

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So what's next for Watson?

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So Watson is ideally suited
to answer questions which

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cover a wide range
of material and often

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have to deal with inconsistent
or incomplete information.

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This makes it particularly
appropriate for applications

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like medicine.

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Note that the amount of
medical information available

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is doubling every five
years, and a lot of the data

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is unstructured.

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As a result, Watson has been
utilized for cancer diagnosis

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and selecting the best
course of treatment.

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And Watson has
been in discussions

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with MD Anderson and Memorial
Sloan-Kettering Cancer Centers

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to apply the Watson technology
for cancer diagnosis

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and selecting the best
course of treatment.

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So what is the analytics
edge of Watson?

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First, we have observed that
the major technology of Watson

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is to combine many
algorithms that

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increase the accuracy
and the confidence

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of the overall outcome.

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Any one of these algorithms
would not have worked,

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but their combination gives
Watson a considerable edge.

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The second important observation
that gives Watson an edge

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is that it approaches the
problem in a very different way

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than how a human
approaches a problem.

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A key aspect of the technology
is hypothesis generation,

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and then using different
and distinct algorithms

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to explore this hypothesis
and combining them,

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it leads to answers
that provide an edge.

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Finally, and quite
importantly, Watson

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has a considerable
ability to deal

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with massive amounts of data,
often in unstructured form.

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And the vast majority of the
data-- 90% of it-- is, in fact,

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unstructured.

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So the combination
of these ideas

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give Watson a significant edge.

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It is no accident that IBM has
invested so far more than $24

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billion to invest in
Watson technologies,

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and it has created
a company within IBM

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called Watson Solutions,
whose key objective is

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to apply the Watson
technology and the edge

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that it creates to a variety
of verticals, one of which

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is medicine.