Artificial intelligence in telecom

Main article: Artificial Intelligence

• Global Telecom Trends
• Telecommunications Services (Global Market)

History

2024: Introduction of artificial intelligence generates tens of billions of dollars for telecom

Many telecommunications companies have begun introducing generative artificial intelligence (GeniI), generating significant cost savings in areas such as marketing, sales and customer service. These technologies can provide industry participants with a significant revenue increase, as stated in the McKinsey review published on October 18, 2024.

It is noted that telecom market players are facing increasingly tough competitive pressure from rapidly developing technology companies. To stimulate revenue growth, operators are forced to develop new areas such as the Internet of Things (IoT), SaaS (software as a service) and streaming video platforms. In addition, companies are entering related industries including insurance, financial services and healthcare to offer new B2C and B2B services. McKinsey analysts say that in the resulting macroeconomic situation, AI technologies give telecom operators the opportunity to rethink themselves, optimize business processes and, ultimately, stimulate growth.

The McKinsey report said that for telecoms companies, the goal is to introduce AI into all aspects of the business. We are talking about improving customer experience, optimizing internal operations and infrastructure, as well as reducing costs by automating certain tasks. At the same time, it is emphasized that industry participants need to focus on responsible use of AI (Responsible AI, RAI). This is an approach involving the design, evaluation and deployment of AI systems in compliance with the principles of security, reliability and ethics. As AI is widely adopted, ensuring privacy and protecting personal and business information are becoming more important and complex tasks. Therefore, the concept of RAI is extremely important for gaining customer trust and preventing threats.

According to McKinsey estimates, AI can increase the profits of telecommunications companies by 3-4% in two years and by 8-10% over five years (until the end of 2029). At the same time, the implementation of RAI best practices can bring up to $250 billion by 2040. Analysts emphasize that like all AI deployments, RAI can significantly improve business processes and optimize technology integration to reduce costs. Effective RAI can also strengthen the brand's reputation, and higher customer acquisition and retention rates often drive revenue growth. In addition, RAI can help reduce commercial and reputational risks across the spectrum of AI tools and applications by ensuring that they operate at the highest level of accuracy. For example, thanks to RAI methods, the company's customer support chatbot will not use biased or incorrect language and will never recommend a competitor's product or service.

Telecommunications companies can benefit from RAI in several ways. Among them, McKinsey specialists name: improved business results, competitive advantage, sustainable growth, increased customer confidence, improved operational efficiency, attracting qualified specialists and financial benefits. Market participants acknowledge that robust control of the RAI serves as an "effective brake" that allows "moving faster" to harness the full potential of AI while reducing risks. However, one of the most significant barriers to RAI deployment is the lack of industry standards.^[1]

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