Report:
Magic Quadrant for AI in CSP Customer and Business Operations
How does Gartner define the AI in CSP Customer and Business Operations market in 2024?
Gartner defines the market of AI in communications service provider (CSP) customer and business operations as commercial off-the-shelf (COTS) products. They are either capabilities embedded in CSP-specific operational technology (OT) applications (such as channels, CRM and other business support system [BSS] applications) or industry-agnostic horizontal applications delivering AI/machine learning (ML)-based customer and business operations in CSPs. CSP customer and business operations refer to marketing, sales, customer acquisition, customer journey, billing and revenue management, revenue assurance, and related risk management. The scope of AI products covers data readiness, life cycle management of algorithms and their application to CSP customer and business operations.
Key Facts for Magic Quadrant for AI in CSP Customer and Business Operations in 2024
- Publication Date: 4 June 2024
- Document ID: G00808857
- Coverage: Global
- Authors: Pulkit Pandey, Amresh Nandan
- Core Purpose: This Magic Quadrant helps communications service providers identify and evaluate AI vendors for their customer and business operations. It will guide CSP CIOs and technology leaders toward the right AI vendor choices in a rapidly evolving market.
Strategic Planning Assumptions
No strategic planning assumptions provided.
How was the AI in CSP Customer and Business Operations market evolved in 2024?
- AI in CSP customer and business operations helps CSPs utilize AI/ML to generate insights and automate business processes across marketing, sales, customer journey, billing and revenue management, revenue assurance, and fraud/risk management
- The market comprises commercial off-the-shelf (COTS) products either embedded in CSP-specific operational technology applications or industry-agnostic horizontal applications
- Generative AI has been a key driver in AI initiatives, with CSPs exploring GenAI as a catalyst for projects
- AI offerings range from specialized solutions to wider solutions including additional features such as security and data storage
- The market includes three broad categories: customer journey, marketing and sales, and revenue management
- Standard capabilities include data readiness, algorithm development, version control, life cycle management, and data application
- Nine vendors were evaluated in this Magic Quadrant: Amdocs, AsiaInfo, Comviva, Flytxt, Huawei, Subex, Tecnotree, and Whale Cloud Technology
- Leaders demonstrate ample ability to support numerous AI use cases with consistent delivery and significant product innovation
- Most AI deployments focus on marketing, sales, and customer journey use cases, particularly in emerging markets
What product features are required to be included in this year's evaluation?
- Product/service component for data readiness (e.g., data collection, data cleansing, processing, metatagging, distribution).
- Product component for algorithm development (development of algorithms for CSP customer and business operations as mentioned in the Market Definition and the Purpose Summary).
- Product component for algorithm version control
- Product component for algorithm life cycle management (management of algorithms for training, efficiency, relevance and retirement).
- Product component for data application and output (application of AI models for one or more use cases in CSP customer and business operations).
- At least one of the functional capabilities listed in the "Optional Capabilities" (i.e., the functional capability of marketing and sales use cases in CSPs/customer journey use cases in CSPs/revenue management use cases in CSPs).
What are the common features of top products in the AI in CSP Customer and Business Operations space?
- Marketing and sales (e.g., content customization, personalized ads, ML-based CRM, lead generation, send-time optimization, cross-sell/upsell marketing and recommendations, etc.).
- Customer journey (e.g., customer acquisition, customer care, service desk and contact-center-related operational use cases).
- Revenue management (e.g., personalized tariff planning, pricing, discounting, billing, security and regulatory compliance, fraud/risk management and revenue assurance).
- Professional services around AI/ML consulting, implementation and related services.
Scope Exclusions
- Products that have only an indirect or implied impact on customer and business operations
- Network operations solutions
- Enterprise operations solutions
- Vendors without five or more CSP commercial deployments
- Vendors without presence in at least three Gartner-defined geographies
- Vendors whose products are not directly associated with CSP customer and business operations use cases
Inclusion Criteria
Vendors must, among other requirements:
- Commercial deployments with five or more communications service providers (CSPs)
- Deployments must span at least three or more Gartner-defined geographies
- Commercial deployments must be of AI/ML products directly associated with CSP customer and business operations use cases
- Products must have direct impact on customer and business operations (not indirect or implied impact)
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - Medium
- Sales Execution/Pricing - Medium
- Market Responsiveness/Record - High
- Marketing Execution - High
- Customer Experience - High
- Operations - Low
Completeness of Vision — Relative Weighting
- Market Understanding - Medium
- Marketing Strategy - Medium
- Sales Strategy - Medium
- Offering (Product) Strategy - High
- Business Model - Medium
- Vertical/Industry Strategy - NotRated
- Innovation - Medium
- Geographic Strategy - Low
FAQs
Q: What does this research cover?
A: This research covers the AI in CSP Customer and Business Operations market, evaluating vendors that provide commercial off-the-shelf AI/ML products for communications service providers. The scope includes data readiness, algorithm life cycle management, and application to CSP operations across marketing, sales, customer acquisition, customer journey, billing and revenue management, revenue assurance, and fraud/risk management. The research evaluates nine vendors across multiple criteria including product capabilities, market execution, innovation, and strategic vision.
Q: Who should use this research?
A: This research should be used by communications service provider (CSP) CIOs, technology leaders, and business executives who are responsible for selecting and implementing AI solutions for customer and business operations. It is particularly valuable for organizations evaluating AI vendors to support marketing automation, customer journey management, revenue optimization, fraud detection, and overall digital transformation initiatives. The research helps buyers understand vendor strengths, cautions, market positioning, and strategic fit for their specific operational requirements and geographic needs.
Q: What are the mandatory features of vendors included in this market?
A: Vendors must provide: (1) Data readiness components for collection, cleansing, processing, and distribution; (2) Algorithm development capabilities for CSP customer and business operations; (3) Algorithm version control; (4) Algorithm life cycle management for training, efficiency, relevance and retirement; (5) Data application and output components that apply AI models to use cases; and (6) At least one functional capability area covering marketing/sales, customer journey, or revenue management use cases in CSPs. The service component can be delivered by the vendor or through a partner company.
Q: What are some reasons for not being included in this report?
A:
- Fewer than five commercial CSP deployments
- Presence in fewer than three Gartner-defined geographies
- Products not directly associated with CSP customer and business operations use cases
- Products with only indirect or implied impact on customer and business operations
- Focus on network or enterprise operations rather than customer and business operations
- Insufficient public domain information about vendor's product play when vendor did not respond to Gartner surveys
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute measures a vendor's current market performance and operational capabilities, including product quality, sales effectiveness, customer experience, and financial viability. It focuses on what vendors are delivering today and how well they execute in the market. Completeness of Vision assesses a vendor's strategic direction and future potential, including market understanding, innovation plans, product roadmap, business model soundness, and geographic expansion strategy. It evaluates how well vendors anticipate and prepare for future market evolution.
Reference
- Gartner, Magic Quadrant for AI in CSP Customer and Business Operations, 4 June 2024, ID G00808857
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