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United StatesHealthcare and life sciences2014–2017

The University of Texas MD Anderson Cancer Center

Oncology Expert Advisor built on IBM Watson

MD Anderson spent $62 million on a Watson cancer advisor that never went live, a university audit found

StoppedRegulator, audit or court

Problem

MD Anderson wanted an AI system to support oncologists' treatment decisions, starting with leukemia. It chose IBM's Watson as the basis for an "Oncology Expert Advisor".

Approach

The project paid IBM and the consultancy PwC, largely from donor gifts, and later shifted its focus from leukemia to lung cancer. A University of Texas System audit published in February 2017 found that it had bypassed normal IT procurement, that fees were set just below the level that required board approval, and that $11.59 million of gifts had been spent before they were received. The system had been tested but never used to treat patients; IBM support ended in 2016, and the centre put the project on hold.

Results

$62Mpaid to IBM and PwC for the project, according to the auditRegulator, audit or court[1][2]
$11.59Mdonor gifts spent before they had been receivedRegulator, audit or court[1]
0patients treated with the system's advice outside test and evaluation useRegulator, audit or court[1]

Takeaway

The audit found failures in project management and procurement; it did not assess Watson's medical performance. The hospital had meanwhile moved to a new electronic health record system, and the audit noted that restarting the project would require integrating with it and updating outdated drug and trial data.

Categories

Business function
IT and R&D
Evidence
Regulator, audit or court

Sources

Source summaries

[1]The Register20 Feb 2017

The Register summarizes a University of Texas audit of MD Anderson's Oncology Expert Advisor. It reports that $62 million went to IBM and PwC outside normal procurement, that fees sat just below the board-approval threshold, and that $11.59 million of gifts were spent before receipt. The project never went live, IBM ended support in 2016, and restarting would require integration with a new records system and updated trial data.

[2]Engadget20 Feb 2017

Engadget reports that MD Anderson put the Watson-based advisor on hold after the audit found spending problems and a shifting strategy, with the focus moving from leukemia to lung cancer. It says the centre paid $62 million itself, that a change of medical records software made Watson incompatible without major rework, and that the centre planned to seek competitive bids.

Full details are in the original sources.

Added 25 Oct 2026 · Updated 25 Oct 2026
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