Earlier quoted context omitted.
I deny that the human brain IS algorithms. It is neurons connected by dendrons/synapses. Right? Small bits of it can be algorithmically simulated. Large processes can be algorithmically simulated. But to call the algorithm "intelligence" is sympathetic magic. Algorithms work in a different way; they break in a different way; they are hard-coded so don't change. They are a simulation.
No disrespect intended but, I think you are lacking a fundamental understanding of machine learning, genetic algorithms, neural networks and AI in general. I was introduced to Watson when I took a sub-project from IBM related to Watson, I had no idea what it was untill taking the contract, at which point I was introduced to Watson and it is an impressive feat, it is with out a doubt the state of the art in NLP AI. Su…
Machine learning is really computational statistics - it applies fairly standard and well understood techniques to fit a function to a noisy data set. Genetic algorithms and neural networks are really fancy words for optimization algorithms - they're merely a set of tools (not unlike hill-climbing) for searching a large space. The de-facto books on AI are PAIP and PPAI. I've read both, and example programs there, while very interesting, are not much different than a combination of reasonably clever techniques.
"Generating new code" is the same thing as generating a data structure and running a predefined interpreter over it. These systems do that, but in a much more restricted way than you imply. They certainly don't design new algorithms in an intelligent fashion, merely use a set of predefined inference rules, not unlike any other rewriting system.
I don't know anything about Watson, but it is a well understood fact that every AI system to date is nothing more than a clever marionette (and it's very unlikely that this will change for a very long time). You can't just throw terms around - show an example. In every case so far a result that initially appears impressive, when understood, is immediately disappointing. They're all clever, but they're a far cry from "self-learning systems" for any reasonable definition of the word "learning".