IBM Designs AI-Powered Project for Nedgia, But Erste Group Remains Concerned

International Business Machines Corporation (NYSE:IBM) is one of the 10 Best AI Software Stocks to Buy Now. On July 14, International Business Machines Corporation (NYSE:IBM) reported that it had designed and implemented a digital evolution project for Nedgia.

Nedgia is a gas distributor of the Naturgy Group. IBM designed the digital evolution project that uses generative AI agents. The project creates an innovative contact center supported by virtual agents and is a cutting-edge application of generative AI. This solution strengthens customer service by integrating digital agents into the company’s standard telephone and digital customer service channels.

IBM’s digital solution allows Nedgia to replicate and scale automation use cases to resolve most interactions. The automation process includes services such as appointment management for periodic inspections and access to meter reading information. In the future, the solution will also offer the ability to modify supply data points. All these solutions will allow customers to manage their appointments automatically.

While IBM continues to serve in AI technology, Hans Engel from Erste Group sees IBM’s trouble with its revenue growth as a contest of broader sector technology performance. On August 14, Engel downgraded IBM from Buy to Hold. Engel has shown concern about the company’s current P/E ratio, which it considers high given the company’s growth outlook. The company’s 2025 forecast reflects moderate revenue growth of almost 5% from a year ago, while the P/E ratio of the stock is high in view of the below-average growth prospects.

International Business Machines Corporation (NYSE:IBM) offers integrated services and solutions to enterprises. The company is a leading provider of global hybrid cloud and AI, and consulting expertise.

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Disclosure: None. This article is originally published at Insider Monkey.