Watson is an artificial intelligence system developed by IBM. It is designed to analyze large amounts of data and provide insights, making it useful in various fields such as healthcare, finance, and customer service. Watson gained fame for its performance on the quiz show Jeopardy!, where it competed against human champions and won in 2011. Watson uses natural language processing and machine learning to understand and respond to questions in a conversational manner. Its capabilities include data analysis, language translation, and even assisting in medical diagnoses, showcasing the potential of AI in enhancing decision-making processes across different industries.