Amdocs Advances Generative AI Strategy with Key Partnerships

Amdocs achieves record revenue of $1.25 billion in Q2 2024, up 2.0% from the previous year, driven by its generative AI strategy in the telecommunications industry. The company partners with NVIDIA to integrate generative AI, achieving advancements in latency, accuracy, and token consumption.

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Amdocs Advances Generative AI Strategy with Key Partnerships

Amdocs Advances Generative AI Strategy with Key Partnerships

Amdocs, a leading provider of software and services to communications and media companies, has made significant strides in advancing itsgenerative AI strategyin the telecommunications industry. The company achieved record revenue of $1.25 billion in Q2 2024, up 2.0% from the previous year in constant currency. Amdocs' non-GAAP operating margin also improved by 60 basis points year-over-year and 30 basis points sequentially, while its non-GAAP earnings per share were $1.56, consistent with the midpoint of its expectation.

Why this matters: The integration of generative AI in the telecommunications industry has the potential to transform customer experiences and drive operational efficiencies, ultimately leading to cost savings and improved services for consumers. As the industry continues to evolve, the adoption of AI technology will play a critical role in shaping its future.

Amdocs is leveraging its unique blend of telco industry expertise, generative AI leadership, and cloud-native agility to drive innovation in the $1.7 trilliontelecommunications sector. The company has partnered with NVIDIA to integrate NVIDIA's full-stack AI foundry service with its own generative AI platform, amAIz. This collaboration has focused on harnessing generative AI to transform customer experiences and deliver operational efficiencies.

Through their collaboration, Amdocs and NVIDIA have achieved meaningful advancements in latency, accuracy, and token consumption, paving the way for true carrier-scale production. Amdocs leveraged NVIDIA DGX Cloud to test and tune multiple models, and NVIDIA NIM microservices to rapidly deploy models for seamless, scalable inference with industry-standard APIs. "These achievements are not just milestones but are critical in reshaping the telecommunications landscape," said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs.

In addition to its partnership with NVIDIA, Amdocs is expanding its cloud and digital modernization efforts, with significant deals signed with AT&T, T-Mobile, Charter, and Comcast Business. The company is supporting its customers' next-gen multiyear modernization investments, with a focus on cloud-native agility and cutting-edge innovation. Amdocs has also partnered with Microsoft, AWS, and others to drive innovation in the telco industry and support its customers' digital transformation projects andmodernization efforts.

Amdocs' 12-month backlog reached a record $4.3 billion, up approximately 3% from the previous year. Joshua Sheffer, President and CEO of Amdocs, stated,"I believe our record 12-month backlog reflects Amdocs' market leadership and healthy sales momentum as we are repeatedly chosen as the technology partner best equipped to support our customers' next-gen multiyear modernization investments."

Amdocs' collaboration with NVIDIA supports its advanced LLM routing capabilities, ensuring that generative AI tasks are matched with the 'best fit' LLM, and improving outcomes as a result. "By combining Amdocs' generative AI platform and telecommunications industry expertise with NVIDIA's full-stack AI foundry service including NVIDIA NIM, we are enabling meaningful scale of generative AI in telcos, accelerating time to value, and driving positive return on investment,"said Chris Penrose, Global Head ofTelco Business Developmentat NVIDIA. The goal is to prove the business value of generative AI, including driving down costs, improving accuracy of results, and delivering tangible benefits to service providers and their customers.