AI's 'let 1,000 flowers bloom' era is over

IBM experienced a significant earnings miss as customers reduced spending on its AI-related products to invest in AI-critical solutions from competitors. The article highlights a shift in corporate AI spending priorities, with companies reallocating budgets amid shareholder pressure and the 'educational friction' phase of AI adoption. IBM's leadership acknowledged execution shortfalls in its AI strategy while maintaining confidence in its long-term approach.