It's true that we (as in everyone working on these problems - not just IBM) don't have this working. Two points, though: 1) This is probably the most active area of research in machine learning/AI at the moment. The same type of progress that was made in image understanding 2 years ago using deep learning techniques is now being seen in NLP. See for example[1]. 2) It isn't at all clear that "making connections" of the type he talks about is needed to generate the types on insights that he claims. For example, the work StitchFix is doing combining analogy reasoning on words along with other non-textual data[2] indicates to me that the current state-of-the-art absolutely…
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could "understand" that Bob Dylan wrote about themes that were associated with anti-war sentiment. [1] "Teaching Machines to Read and Comprehend" http://arxiv.org/abs/1506.03340 [2] http://multithreaded.stitchfix.com/blog/2015/03/11/word-is-w..., https://github.com/stitchfix/context2vec,