Amdocs is making agentic AI a core growth strategy for telecommunications, developing next-generation BSS/OSS platforms that can automate, self-heal and manage operations with less human intervention. The company is exploring adjacent opportunities including edge computing, security, virtualization and AI governance, potentially enabling telecom providers to offer managed inference and AI services to enterprise customers. Early deployments show significant potential: one European customer's agentic WhatsApp system handled 97% of interactions without human escalation, while another network project reportedly cut annual operating costs by 60%.
Amdocs (NASDAQ:DOX) is positioning artificial intelligence as a central component of its long-term strategy, with a focus on agentic software for telecommunications providers, expansion into adjacent markets and internal operational transformation, Group President of Technology and Head of Strategy Anthony Goonetilleke said during an Oppenheimer discussion. Goonetilleke said the company has been realigning its vision and strategy following the transition to a new CEO, identified in the discussion as Shimie. The effort is focused on the next one, three and five years rather than near-term quarterly objectives, he said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be "We're really grabbing all of this convergence of technology from connectivity to AI, to cloud acceleration, to the edge," Goonetilleke said.
Amdocs is seeking to deliver value for large customers while balancing the cost implications of technology deployments, he added. Goonetilleke described Amdocs' strategy as three main pillars supported by an internal transformation effort. Agentic transformation for telecommunications: Amdocs plans to continue investing in its business support systems and operations support systems, or BSS and OSS, while developing a next-generation agentic platform.
Goonetilleke said the company sees a future in which software can increasingly "auto-heal," evolve and manage changes with less manual IT intervention. Expansion into another complex vertical: The company believes its experience building mission-critical, always-on software for a heavily regulated industry can be applied to another sector with similar requirements. Goonetilleke did not identify the potential vertical.
Adjacent opportunities in emerging technology markets: Amdocs is evaluating opportunities related to edge computing, workload management, security, virtualization and monetization. The company has been discussing edge mesh-grid concepts with NVIDIA, he said. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand On the edge opportunity, Goonetilleke said telecom providers possess distributed sites that are powered, air-conditioned and connected by fiber. These locations could potentially support compute capacity closer to enterprises and consumers, but would require software to manage workloads, security, partitions, virtualization and commercial models.
He said Amdocs does not intend to broadly enter unrelated sectors, but is evaluating adjacent applications for technologies it has already developed. For example, the company has been working on post-quantum cryptography compliance for its enterprise applications and sees potential relevance beyond its own operations. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company is also pursuing what Goonetilleke called an internal "customer zero" approach to becoming more agentic. He said Amdocs is a major user of Cursor and is deploying AI tools across functions including development, marketing, legal and human resources.
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