AI technology is becoming a significant focus in the Telecommunications industry, with discussions centred around its applications. Telcos are using AI, which encompasses Deep learning (DL), machine learning (ML), and natural language processing (NLP), to discover valuable information, enhance customer satisfaction, streamline operations, and boost revenue. Telcos must consider whether they are utilising this technology effectively to address their business needs. We unpack this in more detail below.
Innovation in the Telecom Industry
In recent years, the Telecommunication industry has experienced significant changes and a shift in focus towards innovation, with artificial intelligence (AI) playing a central role, which is crucial for staying competitive and meeting the evolving needs of mobile operators and their customers.
Previously, Telcos primarily offered basic telephone, internet, and mobile network services. However, today’s Telcos are tasked with providing and managing a wide range of services, products, and solutions while targeting specific consumer segments and delivering exceptional customer service. In an increasingly competitive market, Telcos must exert great effort to meet customer expectations, as numerous alternative service providers are available for consumers.
To ensure that Telcos are meeting customers’ service delivery and experience needs, Telcos have turned to AI technologies. These technologies are being used to gain critical insights into every aspect of the Telco business, from operations to network quality to customer behaviour, and the list goes on.
How big is this market? A recent report states that the global artificial intelligence in Telecommunication market size was valued at USD 1.45 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 28.2% from 2023 to 2030. This clearly shows that Telcos see immense value in using this technology.Â
Challenges The Telecoms Industry Are Facing Today
As mentioned above, the growth in the AI market size within this industry is directly linked to its value. How do we determine its value? The value primarily lies in solving several challenges within the Telecommunications industry. We explain this in more detail below:
Challenge: Increasing operational expenses
How AI solves this: Intelligent Process Automation (IPA) incorporates various technologies such as AI, Computer Vision, Cognitive Automation, and Machine Learning to enable Robotic Process Automation. This technology automates lengthy procedures, such as billing, order management, and data processing, benefiting Telcos in several ways. By leveraging these technologies for automation, Telcos can enhance operational efficiency, optimise cost management, minimise resource requirements, and mitigate the risk of human error, ultimately resulting in reduced operational expenses.
Challenge: Managing and interpreting Big Data
How AI solves this: Data is one of Telcos’ most significant assets, but your data is only as good as the insights you get from it. With so much data coming from different data streams, managing, interpreting and extracting relevant and valuable insights is often tricky and time-consuming. AI simplifies extensive data analysis by automating the data process, including data preparation, visualisation, predictive modelling, and other complex analytical tasks that provide the insights needed for effective decision-making.Â
Challenge: Changing customer demands
How AI solves this: Customers want to engage and connect more with Telcos and find out information or get answers to queries fast. AI is being used to automate the processes related to customer service messaging and help customers find the information they need when they need it through an omnichannel experience. In this way, Telcos can reduce frustration and enhance customer experience while cutting down on call centre resources.
Challenge: Security and data breaches
How AI solves this: In today’s world, the prevalence of online criminal activity, particularly fraud, poses a substantial risk to Telcos. It is estimated that the global revenue loss has reached a staggering 2.2% or $40 billion due to fraud. Advanced algorithms in AI technology play a crucial role in identifying and anticipating any unusual activities occurring within the network. This allows Telcos to swiftly identify and respond to any security or data breaches. Adopting this technology dramatically enhances Telcos’ ability to respond to potential threats quickly, protecting systems and data before detrimental consequences or losses can occur.
Challenge: Network quality and optimisation
How AI solves this: AI technology assists with predictive maintenance. This allows a Telco to predict future trends and patterns based on historical data to identify network and operational malfunctions, as well as the misuse of resources. In this way, Telcos can predict hardware failures before they occur, allowing a Telco to be proactive in maintaining its equipment and improving overall network quality and customer experience.Â
Challenge: Effective product planning and marketing
How AI solves this: AI is used for predictive analytics. These analytics allow Telcos to extract valuable insights from massive amounts of data. By using this data to examine customer behaviour, life cycles, purchasing decisions, etc., a Telco can gain insight into what customers are looking for and plan products and solutions to meet these needs and demands. These analytics also provide the insight needed to market and upsell to customers effectively.
AI in the Telecommunications industry is setting a new standard for excellence, especially where network infrastructure, traffic and resource management is concerned. It must be noted that AI is only as good as the data it is built on, which means you need to ensure that the data you receive is credible and complete.
From the above, it is clear that AI technology assists in fulfilling the need for highly sophisticated and intelligent network solutions. By implementing these artificial intelligence solutions, Telcos can enhance their service efficiency and network reliability, minimise operational expenses, and improve customer satisfaction. These factors are crucial for boosting profitability and staying competitive in a highly competitive market.
The Impact of AI in The Telecoms Industry
Undoubtedly, there is value in utilising AI technology within the Telecommunications industry today. As illustrated above, this technology is used to answer several industry challenges. As with all technology, it is set to evolve over the next few years, with AI specifically seeing a boom within this industry.
A key driver for this boom is an increasing demand for autonomously driven network solutions. With Telecommunications networks expanding rapidly, they are becoming more complex and challenging to manage. By creating AI-powered network solutions, Telcos can reduce network congestion and improve network quality and customer experience, which is vital in reducing customer churn and increasing revenue. Over and above this, we expect to see the following trends coming to the forefront of the industry:Â
- 5G Deployment and Management – AI can play a crucial role in optimising the deployment and management of 5G networks. This includes dynamic resource allocation, efficient spectrum usage, and intelligent traffic steering.
- Virtual Assistants and Chatbots – AI-driven virtual assistants and chatbots can handle routine customer queries, freeing up human resources for more complex issues. This improves customer service efficiency.
- Edge Computing and AI – The combination of AI and edge computing is essential for low-latency applications like augmented reality (AR), virtual reality (VR), and Internet of Things (IoT) devices, enhancing user experiences.
- Resource Optimisation – AI algorithms can optimise the use of resources, including energy consumption in telecom networks, leading to more sustainable and environmentally friendly operations.
- Regulatory Compliance – AI can assist in monitoring and ensuring compliance with regulatory requirements, reducing the risk of legal issues and financial penalties.
- Collaboration with Other Industries – Telecom operators can collaborate with other industries, leveraging AI to contribute to developing smart cities and industries through improved connectivity and data exchange.
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Integrating AI in the telecoms industry is a continuous and evolving process with the potential to enhance efficiency, improve customer experiences, and drive innovation across various aspects of Telecommunications. As this technology advances, further opportunities and challenges will likely emerge, shaping and impacting the future landscape of AI in the Telecommunications sector.
Conclusion
AI technology is here to stay and will continue to significantly impact the Telecommunications industry as we know it. AI has already made inroads in assisting Telcos in increasing revenue, meeting customer demands, enhancing operations, managing the network and improving customer service. To gain the most out of AI and truly leverage its power, you must ensure you have the right AI solutions. This is where Adapt IT Telecoms comes in to assist. With our Advanced Analytics solutions, we can collect, clean, interpret, analyse and structure your data to make the AI process completely seamless. In this way, our solutions ensure the quality of your data to provide accurate and correct insights critical for informed decision-making across the business. For more information on this subject, download our Whitepaper here.
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As the Product Manager of Advanced Analytics within the Adapt IT Telecoms division, I bring 16 years of Telecommunications expertise to the table. Over the past 8 years, my focus has been on Product Development. My responsibilities encompass identifying customer needs, monitoring industry trends, and driving our Advanced Analytics strategy. I’m deeply passionate about leveraging big data for analytical insights and product evolution through machine learning and AI. My experience extends to Mobile Network Events, Mobile Financial Services, and supplementary services.
