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

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
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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