• IDC
  • About IDC
  • IDC Media Center
  • Current: IDC: 62% of Communication Service Providers Reallocate Budgets to Generative AI Initiatives in Asia/Pacific
Press FAQ

Publication date: 18 Jun 2024

IDC: 62% of Communication Service Providers Reallocate Budgets to Generative AI Initiatives in Asia/Pacific

Contact

For more information, contact:

SINGAPORE, 19 June 2024 – In an IDC report, Generative AI Readiness: Are Telcos Geared Up for the Generative AI Revolution?, IDC reveals that communication service providers (CSPs) in Asia/Pacific are increasingly inclined towards generative AI (GenAI) solutions. This report examines key considerations that CSPs must consider before integrating GenAI and provides a strategic road map to kick-start the transformation journey for CSPs using GenAI.

CSPs, in their quest for transformation, are prioritizing AI/ML investments. The industry has been utilizing predictive AI and interpretive AI in their ecosystem, examples include AIOps for network automation and AI-powered chatbots for customer experience. However, there is a gradual shift to exploring and utilizing GenAI across the value chain, as GenAI can generate content and learn patterns from data used for training. This is underscored by the shift to leverage GenAI into CSP operations and to gain competitive advantage, resulting in over 50% of CSPs already allocating IT budgets for GenAI in 2024. However, most of the budget will come from reallocating the IT budget currently assigned to DX or other AI initiatives.

This IDC report also highlights IDC's generative AI framework value creation through generative AI use cases and covers key metrics for assessing the maturity of CSPs to gain maximum benefit from GenAI deployments. The report leverages data from the IDC AI Council and Future Enterprise Resiliency & Spending Survey, Wave 1, January 2024.

"CSPs are methodically exploring feasible business use cases by leveraging GenAI, conducting trials, and allocating funds toward GenAI solutions. However, prior to embracing GenAI, it is crucial to assess their readiness for its adoption," says Swathi Arunaa, Senior Research Analyst, Telecom and Internet of Things, IDC Asia/Pacific.

Other Highlights of the report include:

  • Strategic partners for GenAI deployment: GenAI solutions is not an out-of-a-box solution and the expertise that their partner ecosystem brings is key in unlocking the benefits of GenAI deployments.  
  • GenAI workload management: Data management, cost and multicloud interoperability are key considerations for deployment across on-prem or public infrastructures.  
  • Adoption challenges: Incorporation of GenAI by communications service providers in the region underscores the need for privacy and security policies and telco-specific models.
  • Platform capabilities: GenAI's conversational capabilities and bolstering automation make AI platform adoption more desirable, enabling use cases to enhance internal operations.
  • Continuous Improvement: Generative AI models will evolve to transform use cases in network, operations support system (OSS) and business support systems (BSS) by optimizing internal processes and enriching end-user business offerings. 

For more information on this IDC document, please contact Swathi Arunaa at sarunaa@idc.com. For media inquiries, please contact Miguel Carreon at mcarreon@idc.com or Michael de la Cruz at mdelacruz@idc.com.

*Asia/Pacific including Japan

-Ends-

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



Coverage


Regions Covered

Asia Pacific


Topics Covered