Data Modernization Crucial for AI's Future, Amdocs Study Reveals

A new global study by Amdocs and IDC emphasizes the necessity of data modernization for leveraging AI technologies. Despite recognition of its importance, only 19% of communications service providers have implemented necessary processes fully. The study notes a substantial 78% of service providers foresee the need for new investments in data cleaning and quality over the next two years to maximize AI's potential.

Generative AI's rapid adoption has propelled 65% of providers to shift toward cloud-first data architecture. Furthermore, 76% anticipate significant business model transformations through agentic AI, which drives automated decisions and forecast capabilities, demanding increased data modernization investments.

While AI offers transformative potential, the study reveals a challenge: Only half of the internal data is accessible for AI analytics. This underscores the need for improved data standardization and governance strategies.