Telecoms embrace AI revolution for future growth

• Telecom companies worldwide plan to prioritize artificial intelligence investments until 2025, focusing on network automation, customer service, and data analysis
• The shift towards AI is expected to drive efficiency, enhance customer experience, and support the rollout of 5G and 6G technologies

What happened

Telecoms.com Intelligence has once again conducted its annual industry survey, inviting telecom professionals to look back to 2024 and look ahead to 2025 and beyond. The Telecom survey, published on November 27, shows that AI will be a top investment priority by 2025. Collecting data from a wide range of players, including communications service providers (CSPS), vendors and system integrators, the report examines telecom business performance in 2024 and prospects in 2025 to reveal hot and cold spots in the industry.

About one-third of telecom operators say AI will be a key focus area for their investments in the coming years. The survey found that these companies are particularly interested in AI’s potential to improve network automation, enhance customer service, and drive data analytics. The adoption of AI technologies is seen as critical for increasing operational efficiency and staying competitive, especially with the deployment of 5G networks. AI tools, such as machine learning and predictive analytics, are expected to play a vital role in optimizing network performance, diagnosing issues, and automating customer interactions. These investments are not only expected to streamline operations but also provide telecoms with the agility to respond to rapidly evolving consumer demands.

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What it’s important

The decision to prioritize AI investments through 2025 reflects a broader trend in the telecommunications sector, where companies are under increasing pressure to adapt to rapidly evolving technological landscapes. AI is seen as an essential tool for managing the complexity and high costs of next-generation networks, especially with the ongoing rollouts of 5G and the forthcoming 6G technologies. In a world where consumers demand seamless connectivity and instant customer support, telecom companies must find ways to optimize their operations and enhance the user experience to remain competitive. AI promises to achieve this by automating routine tasks, improving network efficiency, and providing personalized services.

The positive aspect of this trend is that AI could enable a level of innovation that disrupts the industry. Smaller players may be able to leverage AI as a way to improve niche services, differentiate themselves, or even partner with tech startups specializing in AI to compete more effectively with larger operators. A notable example is Mister Telecom, a small UK-based telecom operator that partnered with AI startup Uptake to enhance its customer service with machine learning tools. This move allowed Mister Telecom to deliver smarter, faster customer support without the hefty costs typically associated with large-scale AI integration.