Amdocs Research Reveals 90% of Service Providers Believe Generative AI is Critical for Achieving Business Goals, But See Significant Challenges with Implementation

Rhea-AI Summary

Amdocs (DOX) reveals survey findings on GenAI challenges and opportunities in the CSP industry. The research shows that while 90% of CSPs recognize the impact of GenAI on business goals, implementation is still in early stages. Key findings include expectations of significant changes, specific benefits like new revenue generation and reduced time to market, and critical challenges in data quality, LLM training, and regulatory compliance.

Insights

Market Research Analyst

Understanding the adoption curve of Generative AI (GenAI) in the communications service provider (CSP) industry is vital for predicting future market dynamics. The slow but growing implementation, with only 22% of CSPs having deployed GenAI solutions, suggests a market that is still ripe for innovation and investment. The focus on building in-house GenAI platforms indicates a trend towards vertical integration, which could reshape vendor relationships and competitive landscapes.

The emphasis on automation reflects a broader industry movement towards efficiency and cost reduction, which could lead to significant operational savings and improved customer experiences. However, the challenges of data quality and regulatory compliance must be addressed to unlock the full potential of GenAI. The shift towards GenAI could create opportunities for new entrants specializing in compliance solutions and high-quality data provision.

Telecommunications Industry Analyst

The telecommunications sector's interest in GenAI underscores the industry's push towards digital transformation. The potential benefits, such as new revenue streams and enhanced productivity, align with the sector's ongoing efforts to diversify services and improve operational efficiency. However, the integration challenges highlight a gap in existing capabilities within CSPs.

Training large language models (LLMs) with telecom-specific data is not trivial, signifying a need for specialized skills and knowledge in AI and machine learning within the telecom domain. This could lead to a surge in demand for AI talent within the industry. The anticipated deployment of GenAI via vendor B/OSS applications suggests a growing market for AI-enabled telecom solutions, which may drive innovation and partnerships between CSPs and technology providers.

Data Quality & Compliance Expert

The concerns over data quality and regulatory compliance as obstacles to GenAI implementation reflect broader industry issues around data governance. For CSPs, ensuring that data is accurate, consistent and usable for training LLMs is critical for the success of GenAI applications. The regulatory landscape is also a significant factor, as telecoms are heavily regulated and must navigate complex privacy and security standards.

Aligning GenAI initiatives with these regulations is not only a technical challenge but also a strategic one. It requires a deep understanding of both the technology and the legal frameworks governing data use. The need for compliance could drive the development of new compliance-as-a-service offerings, tailored to the needs of the telecom industry and the unique characteristics of GenAI technologies.

Survey of CSP leaders across the US, Europe and Asia found GenAI implementation still in its preliminary stages; challenges include data quality and regulation

JERSEY CITY, NJ / ACCESSWIRE / March 21, 2024 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today released research findings that give a deeper and surprising look into communications service provider (CSP) challenges, opportunities, and concerns around Generative AI (GenAI).

Amdocs commissioned Analysys Mason to carry out the research* titled,"GenAI Challenges and Opportunities." The results from the survey showed that there is a clear understanding among 90% of CSPs of the profound impact GenAI will have on business goals. However, deployment of GenAI is still in its preliminary stages, with just 22% of CSPs having already implemented GenAI solutions, 32% running proof of concepts (PoCs) and 29% looking to explore it in the next 12 months.

Findings from the research include:

CSPs expect significant changes with GenAI: Most respondents expect GenAI to have a high impact across a variety of domains, such as software development (84%), data management (82%), monetization (82%) and network operations (81%).

Specific benefits are expected: Generating new enterprise revenue (51%) and reducing time to market (40%) were leading use cases, followed by improved employee productivity (39%), new consumer revenue opportunities (35%) and improved customer experience (34%).

Automation is an area of critical importance: 75% of survey respondents expect that integrating GenAI with operational systems will expand the range of automated actions and tasks that operational systems can perform.

However, GenAI implementation is a struggle: 84% of CSP Data, AI and IT organizations say they face great challenges in acquiring the capabilities they need to deploy GenAI successfully. 81% consider GenAI integration with business processes as the largest challenge they face.

Most CSPs consider data quality, LLM (large language model) training and regulatory compliance as being the most challenging hurdles to overcome: Almost half (45%) of CSPs said alignment with compliance, privacy and security regulations were the biggest challenge, followed by training LLMs with telco specific data (43%), and access to high quality data (40%).

The path forward: Almost three-quarters (74%) of respondents are exploring what it takes to build their own GenAI platform. Further, 42% are using professional services providers to implement specific telecom use cases. Additionally, 84% of CSPs are expecting to deploy GenAI as an embedded feature via a vendor's B/OSS applications.

"Some CSPs are even implementing or considering building their own large language models (LLMs). However, building these platforms internally can be slow and costly, especially when skills and resources are scarce, at this point in the market, These CSPs will have to undertake the training and fine tuning of these models for the telecom environment on their own and this can present challenges if they do not have the required skillset in-house," said Adaora Okeleke, Principal Analyst, Analysys Mason. "Adopting a specialized telco-focused LLM platform from a single vendor that consolidates capabilities from multiple LLM providers can accelerate adoption. Once generative AI becomes an integral part of core business processes, it has the potential to bring additional value and can transform CSPs' performance, speed, and operating costs."

"GenAI relies on a vast array of web data, but it lacks access to the data associated with the telecom technology ecosystem, creating a crucial gap and lack of context. To address this challenge, expertise is required to unlock access to pertinent telco data sources, comprehend the intricate telecom taxonomy, and draw necessary, correct conclusions," said Gil Rosen, Chief Marketing Officer at Amdocs. "Through Amdocs' amAIz TelcoGPT platform, CSPs can seamlessly incorporate GenAI to enhance network efficiency, elevate customer service, and drive overall business improvement. Additionally, they can effectively manage costs, security, scalability, and efficiency while optimizing use of tokens."

Amdocs recently unveiled new capabilities of its GenAI platform, amAIz, which combines carrier-grade architecture, leveraging hyperscalers' and open-source technology with large language models embedded into monetization, experience, business, and operational systems. This enables CSPs to benefit from the immense potential of GenAI, including telco-native copilots, innovative use cases, and business efficiencies, along with flexibility, security, and compliance.

*Survey of 114 CSP leaders in North America, Europe, and Asia, who are responsible for their organization's plans and deployment of GenAI.

Supporting Resources

• Read more about the research and Amdocs amAIz
• Keep up with Amdocs news by visiting the company's website
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About Amdocs

Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers' innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and enterprise customers. Our approximately 29,000 employees around the globe are here to accelerate service providers' migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.89 billion in fiscal 2023. For more information, visit www.amdocs.com

Amdocs' Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macro-economic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other global or regional events such as the recent attacks in Israel and evolving conflict and the COVID-19 pandemic, as well as the current inflationary environment, and the effects of these conditions on the company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the company's customers, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the company's offerings and operations and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2023 filed on December 13, 2023 and our Form 6-K furnished for the first quarter of fiscal 2024 on February 20, 2024.

Media Contacts

Michael Zema
Amdocs Public Relations
E-mail: mzema@amdocs.com

Emily Holt
PAN Communications for Amdocs
Email: amdocs@pancomm.com

SOURCE: Amdocs Management Limited

View the original press release on accesswire.com

FAQ

What are the key challenges faced by CSPs in implementing GenAI according to the survey commissioned by Amdocs (DOX)?

According to the survey, CSPs face challenges in acquiring the capabilities needed for successful GenAI deployment, with 84% of organizations struggling in this aspect. Additionally, 81% consider integration with business processes as a major challenge.

What are the expected benefits of GenAI implementation for CSPs based on the research findings by Amdocs (DOX)?

The expected benefits of GenAI implementation for CSPs include generating new enterprise revenue (51%), reducing time to market (40%), improving employee productivity (39%), creating new consumer revenue opportunities (35%), and enhancing customer experience (34%).

How many CSPs have already implemented GenAI solutions according to the survey conducted by Amdocs (DOX)?

Only 22% of CSPs have already implemented GenAI solutions, while 32% are running proof of concepts (PoCs) and 29% plan to explore GenAI in the next 12 months.

What percentage of survey respondents expect that integrating GenAI with operational systems will expand automated actions and tasks?

75% of survey respondents expect that integrating GenAI with operational systems will expand the range of automated actions and tasks that operational systems can perform.

How many CSP leaders were surveyed in North America, Europe, and Asia by Amdocs (DOX) regarding GenAI?

The survey included 114 CSP leaders in North America, Europe, and Asia who are responsible for their organization's plans and deployment of GenAI.