As the telecom industry undergoes rapid transformation, driven by emerging technologies and shifting market dynamics, telecommunication companies (telcos) find themselves at a pivotal crossroads. For telcos, there is only one way forward: adapt and thrive, or resist and fall behind the competitive curve. This article, the first installment of a larger three-part series on the various influences shaping the new era of telecom, will take a deep dive into the transformative role of artificial intelligence (AI) and other adjacent technologies, like generative AI (gen AI), machine learning (ML), large language models (LLMs), etc.
Streamline operations and boost efficiency
Perhaps one of the most significant benefits of AI is its ability to streamline operations, accelerate productivity and automate repetitive tasks. While these benefits are not unique to telcos, the incredible power of AI to modernize overly complex and outdated processes is undeniable. Telecom companies face highly complicated supply chains, requiring coordination between suppliers, manufacturers, distributors and other entities. Telcos can use AI and ML algorithms to modernize supply chain management by having these technologies analyze historical data and accurately forecast demand, thereby avoiding stock-outs or excessive inventory.
A report covering telcos and gen AI from Oliver Wyman, a global management consulting firm, notes that AI will help enhance efficiency in telco operations, specifically via the use of autonomous digital agents powered by gen AI. These digital agents (particularly agentic models) will supercharge employee efficiency, acting as co-workers who can do anything from managing tasks and handling large workloads to building software features and troubleshooting issues. By automating these various workflows, humans can dedicate more time and energy to complex tasks or projects, increasing organizational efficiency.
Revamp customer experience
Another area where telcos continue to use AI is in customer interactions. It’s no secret that telecom has had a poor reputation from a customer service perspective. As recently as last year, the telecom industry received low scores in the American Customer Satisfaction Index Telecommunications Study (ACSI). Interestingly, the ACSI’s study noted that one of the main points of customer dissatisfaction with telcos came from interactions with their call centers. Telcos are aware of these criticisms and have begun using AI to enhance the customer experience through chat and other self-service features embedded in their apps and websites.
The possibilities of AI in customer service settings are immense. For example, gen AI and LLMs can transcend the capabilities of traditional chatbots by engaging in free-flowing and lifelike dialogs with consumers, explaining different services, answering billing questions and finding the best deals. Likewise, AI-driven customer service solutions can support specialized call center agents with real-time information look-ups and post-call analyses. gen AI and LLMs can also personalize customer interactions by leveraging preference and behavior data to ensure they deliver the most appropriate outcomes, whether interacting with a business owner or a less tech-savvy individual. The more data telcos feed these solutions, the more personalized and individualized interactions will become, boosting cross-selling and upselling opportunities.
Create a new portfolio of products and services
AI’s advanced capabilities—specifically its ability to analyze usage patterns, behaviors and preferences–allow telcos to create personified products, services, and experiences that improve customer loyalty, especially with families. AI and data will drive hyper-personalization for each individual and the broader family unit. Imagine a scenario where a representative of a family interacts with an AI-powered customer support agent. In this interaction, the virtual agents ask this person questions, such as, how many people are in your home? What devices do they use? Does your household have any gamers? How much time do they spend on their devices? Then, the AI solution provides customized product recommendations that satisfy everyone’s unique needs.
Additionally, AI will enable telcos to build portfolios of unique products that open additional revenue streams, driving business in other verticals like connected homes and gaming. Some telcos have partnered with leaders in the connected home space, like equipment manufacturers, to provide bundled security offerings and in-home management (e.g., energy management systems) based on the customer’s behavior with their mobile device. For gaming, telcos leverage AI to analyze network consumption and connectivity utilization data to create propositions and bundles targeted to gamers. Telcos are even starting to partner on game launches or provide custom gaming devices with a bundle.
Aligning transformation with business goals
AI and peripheral technologies are powerful enablers that will change every facet of an organization. A successful implementation will, however, require telcos to build a roadmap that connects advanced AI technologies with business goals, such as reducing costs, improving services and accelerating growth. Moreover, telcos must factor in other elements that affect an AI deployment, from legal and ethical concerns to data security and implementation challenges, including considerations for customers and other stakeholders. By taking the time to cart the way forward, telcos can unlock incredible business value, propelling themselves to the forefront of this next era of telecom.
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