Telecom Industry Embraces Generative AI for Enhanced Services and Operations

67% of Telecom Execs See GenAI Enhancing IT Services | PYMNTS.com

Telecom companies are adopting generative artificial intelligence (AI) and driving a shift in the industry. Initially focused on efficiency, this technology is set to change operations, customer service and market positioning. Telecoms are deploying generative AI to cut costs, focusing on automation and streamlining operations. According to the report, 67% of telecom executives believe that generative AI can significantly enhance IT service provision. More than half of communication service providers (CSPs) are exploring AI solutions like chatbots and virtual assistants to optimize customer service and internal operations. Despite this efficiency drive, telecom leaders may be overlooking the potential for AI to spark broader industry transformations. Consider just 18% of telecom operators have implemented generative AI across multiple company processes, while 70% have pilot programs underway. Over time, the value of these AI applications is projected to increase dramatically, from $350 million today to an estimated $20 billion by 2030, signifying the long-term growth potential of AI integration in telecom. Generative AI is already reshaping telecom operations, driving new levels of network performance and customer interaction personalization. Telecom providers are integrating AI to enhance service offerings and streamline complex operations. For instance, a telecom operator in the Asia-Pacific region deployed AI-driven customer value management systems, achieving a 10% reduction in customer churn and a 20% increase in cross-selling. Given these promising results, AI adoption is spreading, with 87% of telecom executives seeing high potential for AI to positively impact both customer experience and relationship management. But concerns about privacy and security risks remain. Consider 80% of telecom leaders express concerns about the security implications of generative AI, particularly regarding cyberthreats and large language models (LLMs). Despite these challenges, 53% of telecom companies have created centers of excellence for AI initiatives. Telecoms are focusing on localizing AI solutions to better serve regional markets. NTT, for example, introduced Tsuzumi, a generative AI platform tailored to the Japanese market with advanced language processing capabilities. This trend is not unique to Japan -- global partnerships like that between SK Telecom and Deutsche Telekom highlight the importance of developing AI systems suited to multilingual and diverse regional needs. As telecom companies implement these localized AI solutions, they are also managing a complex regulatory environment. According to the report, 61% of telecom companies express concern about data security and governance issues, especially given the growing divergence in AI regulations between markets. For instance, the European Union's stringent AI regulations, including the EU AI Act, pose a challenge to telecom operators, who risk penalties for noncompliance. Meanwhile, U.S. regulators are taking a more developer-friendly approach, which adds to the challenge for global telecom operators, who must adjust to varying regulatory environments.

AWS role in driving the gen AI for telecom paradigm - SiliconANGLE

Generative AI meets telecommunications: AWS redefines network agility and customer experiences As industries evolve in the digital age, few sectors exemplify transformation as vividly as telecommunications. Key cloud players, such as Amazon Web Services Inc., are leveraging gen AI for telecom to overhaul network operations, business creation and customer experiences. "We think in terms of flywheels -- if you think about the normal telco flywheel at this point, it's like usage, and usage drives revenue, and usage drives the network build-out," said Chivas Nambiar (pictured), general manager of the telco business at AWS. "Then the network build-out and the capabilities there allow you to go out and build better products. In that entire business process, generative AI is helping you think through at the network operations level, at the business and the product creation level, at the actual customer experience level." Nambiar spoke with theCUBE Research's John Furrier for theCUBE's "Cloud AWS re:Invent Coverage," during an exclusive broadcast on theCUBE, SiliconANGLE Media's livestreaming studio. They discussed the convergence of generative AI, scalable cloud solutions and business model innovation to accelerate value creation in telecommunications. AI-driven insights, such as those from Amazon's Bedrock, provide telcos with the tools to modernize applications and create scalable, API-accessible systems. This ensures that insights gleaned from vast data pools can be quickly acted upon, enhancing agility and operational efficiency, according to Nambiar. "You need that agility," he said. "You have all the insights coming from the gen AI work, but for you to act on it, you actually need systems that are addressable via APIs and that can scale up and down. Those are the three areas in the telco business itself, and then we're seeing revenue growth opportunities and adjacency." Moving beyond technical innovation, there's also a broader shift in telco business models. Historically reliant on heavy capital expenditures, telcos are now embracing cloud-enabled agility to drive revenue growth and operational flexibility, Nambiar noted. "We announced that Comcast, for example, has moved their 5G core over to run on AWS, and that comes on the backs of an announcement with Telefónica, where they've moved a million subs over to a region in Frankfurt," he said. "You can tell that the 5G network core is now something that's a part of what we do."