diff --git a/pkgs/development/python-modules/ibm-cloud-sdk-core/default.nix b/pkgs/development/python-modules/ibm-cloud-sdk-core/default.nix
index 65ddf3d5c071..277836600a5d 100644
--- a/pkgs/development/python-modules/ibm-cloud-sdk-core/default.nix
+++ b/pkgs/development/python-modules/ibm-cloud-sdk-core/default.nix
@@ -1,13 +1,15 @@
-{ lib
-, buildPythonPackage
-, fetchPypi
-, pyjwt
-, pytestCheckHook
-, python-dateutil
-, pythonOlder
-, requests
-, responses
-, setuptools
+{
+  lib,
+  buildPythonPackage,
+  fetchPypi,
+  pyjwt,
+  pytestCheckHook,
+  python-dateutil,
+  pythonAtLeast,
+  pythonOlder,
+  requests,
+  responses,
+  setuptools,
 }:
 
 buildPythonPackage rec {
@@ -22,11 +24,9 @@ buildPythonPackage rec {
     hash = "sha256-CqbZcEP1ianvRRpx527KBjQTjvGBzlSmoKY1Pe5MXRA=";
   };
 
-  nativeBuildInputs = [
-    setuptools
-  ];
+  build-system = [ setuptools ];
 
-  propagatedBuildInputs = [
+  dependencies = [
     pyjwt
     python-dateutil
     requests
@@ -52,6 +52,10 @@ buildPythonPackage rec {
     "test_retry_config_external"
     # assertion error due to requests brotli support
     "test_http_client"
+  ] ++ lib.optionals (pythonAtLeast "3.12") [
+    # Tests are blocking or failing
+    "test_abstract_class_instantiation"
+    "test_abstract_class_instantiation"
   ];
 
   disabledTestPaths = [
diff --git a/pkgs/development/python-modules/ibm-watson/default.nix b/pkgs/development/python-modules/ibm-watson/default.nix
index c15ec2005a29..74ce5e988452 100644
--- a/pkgs/development/python-modules/ibm-watson/default.nix
+++ b/pkgs/development/python-modules/ibm-watson/default.nix
@@ -1,21 +1,23 @@
-{ lib
-, buildPythonPackage
-, fetchFromGitHub
-, ibm-cloud-sdk-core
-, pytest-rerunfailures
-, pytestCheckHook
-, python-dateutil
-, python-dotenv
-, pythonOlder
-, requests
-, responses
-, websocket-client
+{
+  lib,
+  buildPythonPackage,
+  fetchFromGitHub,
+  ibm-cloud-sdk-core,
+  pytest-rerunfailures,
+  pytestCheckHook,
+  python-dateutil,
+  python-dotenv,
+  pythonOlder,
+  requests,
+  setuptools,
+  responses,
+  websocket-client,
 }:
 
 buildPythonPackage rec {
   pname = "ibm-watson";
-  version = "8.0.0";
-  format = "setuptools";
+  version = "8.1.0";
+  pyproject = true;
 
   disabled = pythonOlder "3.7";
 
@@ -23,10 +25,12 @@ buildPythonPackage rec {
     owner = "watson-developer-cloud";
     repo = "python-sdk";
     rev = "refs/tags/v${version}";
-    hash = "sha256-p2LyR7Fxd0Ny6QCypAWIusnINuhWAhWOnRfZ14FKvro=";
+    hash = "sha256-r7A5i17KIy1pBrj01yeknfrOFjb5yZco8ZOc7tlFM7k=";
   };
 
-  propagatedBuildInputs = [
+  build-system = [ setuptools ];
+
+  dependencies = [
     ibm-cloud-sdk-core
     python-dateutil
     requests
@@ -40,9 +44,7 @@ buildPythonPackage rec {
     responses
   ];
 
-  pythonImportsCheck = [
-    "ibm_watson"
-  ];
+  pythonImportsCheck = [ "ibm_watson" ];
 
   meta = with lib; {
     description = "Client library to use the IBM Watson Services";