These new focus areas put telecommunications companies under immense pressure to redefine their operations and find new offerings. Fortunately, generative AI is poised to reconstruct how telecommunications companies approach every aspect of their business, from operations to sustainability to unlocking new revenue streams.
For those who think generative AI is just for creating content and chatbots, think again. Generative AI is reshaping traditional business models for many industries in unimaginable ways. Its attributes of innovation and efficiency are a powerful combination that will change how telecommunications operate, engage with customers, and deliver services. The possibilities for GenAI in telecommunications are immense, with global growth set to expand at a CAGR of 51% through 2033.
Generative AI presents new opportunities for intelligent operations and customer-centric service delivery. Efficiency gains include autonomously configuring networks and optimizing resources with unmatched precision and efficiency. The technology’s hallmark innovative capabilities will also personalize customer interactions, products and service offerings.
Approximately 69% of the global population has a mobile subscription, making the demand for efficient network performance more critical than ever. Telecommunications companies are turning to generative AI to manage and optimize their networks.
Generative AI analyzes network traffic data, predicts patterns, identifies bottlenecks and suggests routing strategies. It can even change cell tower and network parameters to optimize coverage and quality in real time. This technology reduces operational costs by intelligently managing network data traffic with minimal human intervention.
Generative AI’s ability to learn and anticipate network needs means businesses can consistently deliver a robust digital infrastructure. While only 55% of telecommunications companies use generative AI for network management, the potential cost savings and improved network performance gains will likely prioritize this use case in the coming year.
Generative AI is making the telecommunications industry rethink its processes for network expansion. Expanding a network requires extensive manual effort, with experts analyzing various factors to determine optimal locations and configurations. However, with the advent of generative AI, companies can now leverage advanced algorithms to automate and optimize this process.
By simulating multiple scenarios and analyzing different data types in real time, generative AI can identify the most efficient network expansion strategies, significantly reducing the time and costs required. This technology accelerates deployment and enhances decision-making accuracy, allowing telecommunications operators to allocate resources more effectively. Integrating generative AI in network planning offers tremendous benefits, including improved service coverage, reduced operational expenses and a more agile approach to meeting consumer demands.
Approximately 32% of call center traffic are repeat calls; this is problematic, considering 65% of customers change carriers due to a bad customer experience. The good news is that generative AI can quickly customize any customer journey.
Generative AI can craft tailored solutions for each customer. From service plans to proactive troubleshooting advice, the technology delivers highly targeted experiences. It is also proficient at handling multiple calls at once and references a standard resolution database so every caller gets consistent and up-to-date information. Additionally, companies no longer need to navigate language barriers as generative AI can translate multiple languages in real time.
With all these benefits, it is no wonder that the telecommunications industry, like many other industries, already uses generative AI for this use case. Nearly 80% of telecommunications companies use or are testing generative AI for automated customer service.
Generative AI is most widely associated with the creative process. However, this creativity extends to business use cases. This powerful capability can simulate multiple alternatives in minutes that traditionally would take weeks to uncover, if at all. Generative AI helps businesses explore untapped potential, particularly in unlocking new or redefined revenue streams.
Most telecommunications companies define their business as providing a valuable service — connectivity. However, the value of the data that telecommunications companies already have cannot be overstated. If leveraged correctly, this data can unlock significant value without major investments.
Generative AI presents an opportunity for telecommunications to transform raw data into insightful, actionable intelligence that becomes a valuable product. Data can help companies create personalized customer experiences, enhance service offerings and offer network management and optimization “services.”
The best AI solutions require large datasets. The good news is that telecommunications companies have a lot of data, which is growing daily — one person can generate up to 15 TB of data daily by searching, texting, scrolling, etc.
This scenario makes telecommunications well-positioned to mine that data for new offerings, unlocking revenue streams through AI-as-a-Service (AIaaS). Telecoms are beginning to understand that their data can become revenue, redefining their market position by delivering data-driven solutions that cater to a digital customer base.
Imagine telecommunications not merely as connectivity providers but as enablers of smart solutions, offering AI-driven analytics, customer support automation and predictive maintenance services. These solutions include optimizing network efficiency, reducing energy consumption and delivering tailored customer experiences with unparalleled precision. Such data-driven offerings can generate significant income for telecommunications companies.
For companies starting with generative AI, exploring partnerships and collaborations with AI companies is an excellent option to quickly innovate and diversify their revenue opportunities. By aligning with industry leaders in artificial intelligence, companies can tap into cutting-edge technologies and expertise that can open doors to new markets and customer segments.
Collaborations enhance a company’s product offerings and bring about opportunities that can lead to groundbreaking solutions. Strategic AI integration can transform traditional business models, making them more adaptable and future-ready.
For example, partnerships can lead to solutions that optimize energy consumption and reduce carbon footprints and network costs. Such initiatives align with global sustainability goals and attract eco-conscious consumers, creating a potential new market for network operators.
The integration of generative AI presents both opportunities and challenges. Overcoming technical hurdles, such as ensuring robust data accuracy and managing the data processing requirements, is just the beginning.
One significant hurdle is integrating AI models with legacy systems, which often need more flexibility to support advanced machine learning algorithms. Additionally, the quality and quantity of the data required to train these models can be daunting, and businesses must ensure they have access to diverse and comprehensive datasets to avoid biased outcomes. Datasets have also changed, no longer containing only structured data, requiring strategies to address these new valuable data assets.
The computational power required to process and analyze vast datasets can strain infrastructure, necessitating hardware upgrades and investments in cloud solutions. Maintaining the security and privacy of sensitive data during the AI training and deployment phases is another critical issue, as any breach or misuse could have severe repercussions. Addressing these challenges requires strategic planning and cross-functional collaboration.
Like any new technology, starting small and scaling up gives teams time to learn what the technology can do and how to extend the benefits throughout the organization. Incorporating generative AI into telecommunications requires a strategic approach that balances innovation with practicality. Here are some things to consider when getting started with generative AI:
Telecommunications operators can start using generative AI in various cases, such as network optimization, cost savings, improved network reliability and much more.
Generative AI is reshaping every aspect of an industry once bound by wires and frequencies. Soon, AI-driven networks will autonomously manage load balancing, ensuring seamless connectivity across even the most remote landscapes. AI will also help inform service offerings and redefine what is possible. Leveraging generative AI will help telecommunications transform vast amounts of data into actionable insights, charting new paths in service delivery and operational excellence.
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