Ep 109 – The power of agentic AI with Appledore Research (John Abraham)

Agentic AI represents a significant evolution beyond traditional AI systems. According to industry analyst John Abraham, it has two distinct capabilities: reasoning and action. Unlike earlier AI that simply generated content or identified patterns, agentic AI can actually stop to think and reason through problems. It shifts from copilot to autopilot mode, meaning it can handle tasks autonomously without requiring human intervention. These systems are highly proactive rather than reactive, and they can operate in dynamic, multivariable environments by generating their own code or designing alternative paths when conditions change. Essentially, agentic AI thinks and acts more like a human.

Three major topics will dominate MWC 2025 according to Appledore Research. First, enterprise solutions are gaining focus as operators seek new revenue growth and need frameworks to solve the order-to-cash puzzle. Second, monetization through API exposure and network assets is attracting significant investment, with particular attention on charging functions and billing modernization. Third, agentic AI will be everywhere—expect to see it “splattered all over the show floor” as vendors unveil their AI agent strategies. The shift toward AI-native systems and outcome-based pricing models represents a fundamental transformation in how telco software is developed and sold.

Totogi’s BSS Magic is an AI platform built on TM Forum’s open digital architecture and APIs that makes an entire telco stack work as one unified system. Unlike proprietary vendor solutions where AI agents only work within their own systems, BSS Magic creates an AI-powered universal translator that understands all vendor systems. It recognizes when different systems use different terminology for the same concept and translates seamlessly. Because it’s built on industry standards rather than proprietary protocols, it works with any vendor systems, eliminating vendor lock-in. Totogi is already using BSS Magic in deployments, and recently helped a North American operator replace a $250,000 billing system with AI-generated code at essentially no cost.

Research shows telcos spend approximately 80% of their IT budget on integration and customization, leaving only 20% for innovation. For monetization systems specifically, Appledore Research found that around 70% of spending goes toward maintaining legacy systems that don’t have a future. This creates three fundamental problems: expensive initial setup with customized interfaces, ongoing maintenance headaches when vendors upgrade software out of sync, and changed operator behavior where they add adjunct systems rather than properly integrating new capabilities. This accumulation of siloed systems makes it nearly impossible to adopt new technologies like AI effectively.

Telcos should look for two critical elements when evaluating vendor AI claims. First, vendors must have a framework with AI at the center—what’s called “AI native”—rather than AI bolted onto the side of existing systems. The AI must be fundamental to how the system operates, not an add-on feature. Second, leading-edge vendors should be moving toward outcome-based pricing, shifting from software-as-a-service to service-as-a-software models. Read the article from Sequoia Capital about this evolution. This pricing approach demonstrates vendor confidence that their agentic AI can actually deliver results autonomously without constant human intervention.

While other major vendors like Amdocs are building AI agents that work only within their proprietary systems, Totogi takes a fundamentally different approach with BSS Magic. Rather than creating another vendor lock-in situation, Totogi built an intelligent layer on top of TM Forum open standards that works with any vendor systems. This means operators don’t need 15 different proprietary AI agents siloed in individual vendor systems—they need one intelligent layer that understands their business and makes everything work together. Watch Danielle Rios’s talk, “Building an AI-first telco,” from the Gen AI Summit at MWC25.