Endava plc (NYSE:DAVA) Q4 2023 Earnings Call Transcript

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John Cotterell: Yeah. So good question. I’ve touched on that a little bit at the last earnings call and also in my opening remarks this time. So one of the areas is all around data and preparing your data, getting data lakes ready, et cetera, that actually give you the foundations of information upon which to train models and so on. I touched on earlier, the synthetic data which covers the areas where it’s very difficult to get real data to actually train models in order for models to be excellent, they need huge volumes of data, as you know. And when you’re training edge cases, such as that manufacturing example that I gave, where there’s actually very few production defects you’re trying to get a machine to spot, then the use of synthetic data helps with that.

So you put those together, and there’s quite a lot of foundation work that we’re seeing come through. We are seeing work come through and a lot of interest from clients. It’s more at the ideation phase in terms of actually using some of the AI models in order to look at things like claims management and so on across their organizations. And we do think that will start to scale as clients get their heads around what’s possible. There’s also still a huge nervousness in the market around IT liability for using someone else’s IP and inadvertently or losing your own IP because you get absorbed into a model in some way. We do believe that that the market will get through that fairly quickly as the AI models advance. The other area that we’re very excited about is the other aspects of AI rather than just generative AI, and whether that’s computer vision related activities and so on, and we’re seeing as much — probably more actually activity in those other areas of AI than in just the generative AI space, which, of course, has historically been true as well until the generative AI hit market recognition back in November.

Maggie Nolan: Thank you very much.

John Cotterell: Thanks, Maggie.

Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to the management team for any closing remarks.

John Cotterell: Thank you, and thank you all for joining us today. We’re excited actually about the market opportunities over the medium to long term from all of the technological waves that continue to emerge, some of which we outlined on this call, and we’re gearing Endava to continue as a leader as these tech waves gather strength. I look forward to speaking to you again at our next earnings call.

Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.

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