Ash and his friends are walking through a forest, unaware that Team Rocket is watching them. The plan for the day is to make a pitfall to capture Pikachu with. However they're interrupted by a tall man who challenges them to a Pokemon battle. They accept and get out their PokeBalls, then a red shape leaps at them from the trees, and they scream.
Ash stops, he heard the screaming and wonders what's going on. Team Rocket's Arbok, Weezing and Meowth have all been defeated, and they run away. The man says to himself that Pokemon trainers aren't what they used to be.
Again Ash hears something and sends Pikachu to check it out, when a large red bug type Pokemon lands on the path in front of them. Pikachu and Ash prepare to attack but Brock tells them that their opponent looks strong and is waiting for them to make the first move. The tall trainer appears and the Pokemon returns to him; Pikachu collapses from the stress. Misty berates the trainer for letting his Pokemon run loose, and Brock has to drag her away. The trainer introduces himself as Mr. Muromasa, and his Pokemon is a Scizor, the formidable evolved form of Scyther. He is impressed with Ash and Pikachu and invites them to the training center that he runs, where trainers from all over the world come to strengthen themselves and their Pokemon. Brock is impressed by the school, and one of the students tells him that Mr. Muromasa was once a top trainer and he created the school to pass on what he had learned. His Scizor was known as The Crimson Streak because it was so fast.
Another boy comes out, it is Shingo, the school's top student. Ash introduces himself and Shingo uses a laptop to get the relevant data. Shingo says his laptop contains data on all worthy trainers, their Pokemon and their strategies. Team Rocket is listening in, and they plan to steal the laptop so they can use the data.
Shingo doesn't think much of Ash's profile but Ash insists that he's a much better trainer now than he was and challenges Shingo to a match. Shingo declines, saying his data predicts that Ash would lose. There is no point for him to battle any more because his computer can help him learn more about Pokemon than battling can. He will only battle someone who can teach him something he doesn't already know. Mr. Muromasa is disappointed with Shingo's attitude; all he studies are statistics and he has forgotten about the spirit of Pokemon training. Ash vows that he'll get Shingo to battle him somehow.
Ash goes up to Shingo's room and finds him using his computer. He challenges Shingo again but is turned down. As long as Shingo has his computer he doesn't need to battle. Ash insists and grabs his arm. While the boys are distracted, Meowth peeks in the window and hooks a data cable to the laptop so James can download the information. However Jessie is impatient and hauls on the cable, pulling the laptop out the window. Meowth grabs it and gets dragged along the ground until the cable is cut by the Scizor. Ash and Shingo hear their screams and run outside. Everyone confronts Team Rocket and they release all their Pokemon. Shingo runs to get his computer, Arbok attacks him but he's saved at the last moment by the Scizor. Then Shingo looks up Team Rocket in his database but there's nothing there. TR acts haughty and says that his data is incomplete if it doesn't include anything about the great Team Rocket, therefore it isn't worth stealing.
Shingo gets angry and opens a Pokeball, he has a Scizor that he calls Blade, and he claims it's better than Muromasa's Scizor. Then he opens his laptop again and activates a built-in camera that scans TR and their Pokemon. All the Pokemon attack, including Meowth, but his laptop informs him that their reaction time is too slow. His Scizor defeats them all in one move and sends TR blasting off. Ash goes to Shingo and tells him it's a waste for him not to battle since only data can predict neither the outcome of a match nor the effect on the Pokemon and their trainers. Finally Shingo agrees to a match. This is a one-on-one match, Blade vs. Ash's Heracross. Shingo starts off with a Quick Attack, Ash has Heracross try a Leer attack but Blade is moving too fast for Heracross to see and Heracross gets dealt a lot of damage. Then Blade tries a Metal Claw move and tries to throw Heracross into the air but Heracross successfully counters it, much to Shingo's surprise. Then Heracross does a Horn Attack and while Blade manages to dodge it gets injured. Shingo is amazed at Heracross' quick defense and Brock says that many trainers battle on instinct, which makes most battles unpredictable.
Heracross attempts a Take Down and Blade responds with Agility. Ash tells Heracross to relax and let Blade come to him. Shingo gets confused as to why Heracross is just standing there and tries to do a search on his computer, but can't keep his attention on the computer and the battle at the same time - he's putting his trust in the data instead of himself.
Eventually Blade gets worn down and Heracross goes in with a Fury Attack. Shingo tries to counter by having Blade do Metal Claw again but he's not quick enough and Blade goes down hard. Blade struggles to stand, Heracross Fury Attacks again and Shingo notes that it is faster than his data had predicted. He finally sets his computer aside and starts to call the shots on his own. The spectacular battle continues and Heracross eventually wins with a few unexpected moves.
Shingo realizes now that he doesn't need his computer any more. He says he's learned a lot from Ash and the two boys promise they'll battle again someday. Facts and figures don't give the real story about Pokemon, only experience does.