Summary Bullets:
• The complexities of implementing generative AI (GenAI) and integrating it with existing systems present a challenge to enterprises; most organizations report that deployments take much longer than originally anticipated.
• Telefónica Tech is wise to expand its AI offerings for business customers and to offer tools focused on data management and governance.
On June 18, 2024, Telefónica Tech announced it was expanding its partnership with IBM to help businesses in Spain adopt artificial intelligence (AI), including GenAI. The companies will offer Shark.X, a platform designed for data management, analytics, and AI. The platform will incorporate key technologies from IBM, including IBM Cloud Pak for Data and IBM watsonx AI and Data. However, the partnership is not limited to hardware and software: The companies will work together to provide training and educational programs as well as to develop use cases and to help customers implement pilot projects.
Telefónica Tech is wise to implement a strategy that helps businesses of all sizes adopt GenAI. Across the globe, enterprises are eager to reap the benefits of the new technology, and Spain is no exception. According to GlobalData’s GenAI forecast, the market opportunity for the technology in Spain is expected to grow from $19 million in 2022 to $425 million in 2027 at a CAGR of 86%.
GenAI can be used in a range of applications, including to summarize documents, speed research, improve chat bots, translate language, write code, create synthetic data, and enhance fraud detection. Many enterprises report that it is the line of business teams, rather than IT departments, that are pushing for more widespread adoption of the game-changing technology.
However, enterprises face numerous challenges when it comes to adopting GenAI. They are unsure of which large language model (LLM) to work with, whether to experiment with small language models, and how to implement retrieval-augmented generation (RAG) to improve query results. Many are experimenting with open-source models but have security concerns and limit their use to specific applications. Furthermore, most businesses don’t have internal teams with experience in GenAI in place and are having difficulty identifying consultancies with adequate levels of expertise. As a result, the complexities of implementing the technology and integrating it with existing systems present a challenge, and most enterprises report that deployments take much longer than originally anticipated.
Another commonly cited hurdle to broader adoption of GenAI is developing a robust data management and governance strategy. The importance of data quality to analytics outcomes has been widely touted but can’t be emphasized enough. Poor quality inputs will lead to poor quality outputs. GenAI has exposed the dangers of weak data governance structures to corporate security. In what may possibly be a silver lining, GenAI has made the importance of robust data management abundantly clear to those outside of IT departments, spurring much-needed investment.
Telefónica Tech is already known for partnering with vendors, such as sherpa.ai and C2RO, to bring emerging solutions to customers. Expanding its portfolio to include data management and access to GenAI platforms fits neatly into its existing strategy. Additionally, it has relationships with the mid-sized organizations that are eager to adopt AI but don’t have the deep pockets to engage with top-tier consulting organizations. By making tools more accessible, and augmenting them with training and professional services, Telefónica Tech is positioning itself as a trusted partner. When the time is right – and businesses are ready to expand their cloud connectivity, deploy AI at the edge, invest in additional storage, incorporate latency-sensitive applications, or expand networks to capture additional data points – Telefónica will already be well-placed to grow the customer relationship.
IT Connection 