Telecommunications companies are increasingly adopting a cloud-native AI-powered approach in an era of rapid technological evolution. No longer beleaguered by legacy systems, telcos are empowered to work with industry partners to experiment, co-create and unlock new possibilities for the future.
From digitising key interactions to centralised data lakes, asset-light models are undoubtedly one of many advancements enabling telcos to leverage the AI hype and revolutionise the industry.
Building an AI-ready foundation requires much hard work, but these efforts will position telcos to adopt better and implement impactful AI and generative AI (GenAI) capabilities across all business segments. A cornerstone of this foundation is ensuring a mindset shift within the organisation where a telco’s digital function must step up to be a trusted business partner for AI topics internally and externally towards partners.
McKinsey & Company estimates that GenAI could add up to US$4.4 trillion ($5.75 trillion) to the economy annually, with the potential for telcos to achieve significant impact across all key functions. This underscores telcos’ critical role in delivering value to customers and contributing to the broader economy.
Transformative impact of AI and GenAI in telcos
Today, telcos are already harnessing AI to enhance their operations. For instance, AI-powered chatbots and virtual assistants enable network providers to deliver round-the-clock customer support, addressing queries and resolving issues promptly. Furthermore, personalisation is made possible through AI-powered tools that quickly tailor recommendations and services to individual customers, enhancing the overall customer experience.
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When it comes to the employee experience, AI and GenAI are modernising workflows by creating a constant feedback loop that helps our teams refine and personalise customer interactions. This empowers hyper-segmentation and personalisation across customer touchpoints. For example, telcos that use AI-driven analytics to streamline campaign management can empower marketing teams to develop more targeted and effective campaigns.
Beyond contributing to an uplift in the overall customer experience, GenAI is becoming an empowering force that elevates and streamlines team productivity, leading to a better employee experience. Co-pilot GenAI tools will soon become a part of everyday services and interactions across the board.
But AI is also working hard in the background. AI-enhanced network management enables telcos to analyse vast amounts of event data in real time to optimise service performance at scale, predict and prevent outages and dynamically allocate resources based on demand. This results in improved reliability, lower downtime and better overall network efficiency, ensuring telcos provide customers with the best connectivity and experience.
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Further, AI-driven analytics enable telcos to anticipate equipment failures and perform proactive maintenance, thereby reducing downtime and minimising costly service disruptions for customers. In addition to driving efficiencies, in an industry where network security is paramount, the advanced analytics capabilities of GenAI tools allow operators to dynamically detect and prevent fraudulent activities such as SIM swapping, identity theft, unauthorised access and more.
The symbiotic relationship between 5G and AI
Looking beyond the direct workings of telcos, the integration of AI with 5G is significantly catalysing innovation across industries. From smart manufacturing and healthcare to transportation and entertainment, AI-powered 5G solutions pave the way for groundbreaking advancements, revolutionising business operations, enhancing productivity and enriching consumer experiences.
Industry partnerships that aim to deploy AI-driven 5G networks in smart cities are a great example of the potential AI-powered 5G solutions bring to the table. As the backbone of smart cities, the telco industry propels economic growth and innovation. Beyond enabling greater connectivity, deploying and managing AI-powered 5G networks can help cities optimise energy consumption, reduce carbon emissions and empower smart city advancements.
By harnessing this convergence, telcos can contribute to the development of smart city solutions and unlock vast opportunities for differentiation and market leadership in a crowded industry. Embracing AI and 5G holistically revolutionises operations and catalyses telco growth in the digital age, empowering telcos to innovate, differentiate and capitalise on emerging opportunities.
A responsible AI-powered future
While AI solutions offer many benefits, they also present a double-edged sword if not used responsibly. Risks of scaling AI and GenAI tools in telecommunications include potential violations of regulations like the EU’s General Data Protection Regulation, customer privacy concerns and even the exploitation of technology to launch cyber-attacks on critical network infrastructures if the solutions fall into the wrong hands.
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Thankfully, there is no shortage of initiatives fostering critical AI ethics. For instance, the Global System for Mobile Communications Association’s (GSMA) AI for Impact initiative is developing global partnerships to accelerate action and achieve impact in alignment with the United Nations (UN) Sustainable Development Goals. This initiative, guided by a task force of 27 mobile operators and an advisory panel of 12 UN agencies and partners, defines the technical, commercial and ecosystem requirements to deliver viable, data-driven products and services adhering to principles of privacy and ethics. The government has also proposed a framework to foster trusted GenAI development in Singapore.
Internal roadmaps, training and proof-of-concepts are crucial for successful AI and GenAI deployment. Coupled with industry partnerships, such intra-organisational efforts are pivotal in ensuring AI technologies are developed and deployed responsibly within the telco industry, creating a framework that prioritises data protection and ethical considerations.
Individuals, communities, businesses and policymakers all have a role in influencing the trajectory and impact of AI and GenAI technologies. By engaging with technology providers, adhering to guidelines, advocating for regulation and investing in cybersecurity, we can ensure the responsible deployment of AI in the telco industry.
Responsible AI adoption not only safeguards against risks but also unlocks opportunities for innovation within the telco industry. Beyond enhancing efficiency, boosting employee productivity and delivering superior customer experiences with personalised services, AI and GenAI solutions will drive transformative growth, fostering a culture of innovation in the telco industry where technology and ethics go hand in hand.
Marko Cetkovic is the chief digital officer of M1
