AI in Telecom: Examples and Impact on the Industry

Artificial intelligence has become an in-demand technology in the telecom sector. It transforms the industry through NLP, ML, and DL. Service providers use this tech to get insights and increase revenue. Moreover, it’s one of the best ways to optimize workflow. The telecommunication sector is at the forefront of embracing cutting-edge technology in an evolving landscape that extends beyond fundamental services, notably with the advancements of 5G and Internet of Things (IoT). By 2027, AI in the industry worldwide is expected to grow to $14.99 billion. In the article, we’ll touch on AI in telecom, revealing its primary use cases and prospects for your firm.

Exploring What Is AI in Telecom

A computer or a robot under computer control that can carry out activities that would typically need human intellect or decision-making is known as artificial intelligence (AI). It’s applicable across the whole process of a telecom company’s operation. As a result, communication providers can make greater use of the vast quantity of data at their disposal. AI’s importance in telecom operations management and optimization will only increase with the introduction of additional technologies. Here, we’re talking about autonomous 5G, Open RAN, IoT, migration to edge computing, and increasing automation. As a result, more automation should be possible as it is essential to the coordinating age.

Adoption of AI technology gives telecom providers several advantages:

Better network infrastructures. AI-enabled hardware and software use dependable, fast networks. They provide real-time data access and increase scalability and performance.
Management of virtual networks. AI in telecom is essential in managing virtual networks with the development of 5G, SDN, and NFV. It guarantees practical, and adaptable network administration.
Assurance of revenue. AI automates reconciliation procedures and prevents revenue leaks and billing mistakes. Thus, it amps up telecom operators’ financial performance.
Optimization of networks. AI algorithms optimize network resources dynamically. They spruce up productivity, cut expenses, and boost Quality of Service (QoS). It facilitates the implementation of cutting-edge technologies like edge computing and 5G.

With the advent of 5G, AI integration is indispensable to provide customers value and investigate new significant data-driven income sources. It’s especially true for international telecoms. Operators have the perfect opportunity to unleash the power of the formidable combo right now. As an illustration, with GlobalCloudTeam services, you may aim to get scalable platforms for custom content management and distribution, as well as IoT architecture design, implementation, and testing.

Due to the rapid industry advancement, telecom companies lacking profound business intelligence encounter challenges in scaling digital operations. Gartner predicts an 80% failure rate by 2025 in organizations expanding digital ventures without modern data and analytics governance. Therefore, business intelligence proves pivotal in telecom. It enables effective data asset management for accurate and timely decision-making.

We are confident that we have what it takes to help you get your platform from the idea throughout design and development phases, all the way to successful deployment in a production environment!

Why Is AI in Telecom Important?

Accenture estimates that by 2035, AI may skyrocket average profitability by 38% and generate $14 in economic growth. Here are a few reasons why your company can benefit from these technologies:

Cloud service providers like Google Cloud and organizations like Meta drive open-source ecosystems. They provide deployable machine learning APIs, such as the Natural Language API on Google Cloud, and generative AI solutions, like ChatGPT, via APIs. AI in telecom is becoming more accessible to businesses thanks to this.
Telecom companies now have access to previously unheard-of volumes of data. It comprises user behavior analytics, reviews of the customer experience, and data that can be shared with partners. Operators need to invest in fostering digital trust. We’re talking about ethical AI and strong cybersecurity to solve privacy issues.
AI-native businesses worldwide are accomplishing vital goals – cost reduction, smooth interactions, and customized customer experiences. You may learn from the best in the business, from streaming services that offer tailored content suggestions to top insurance providers who use AI assistants to save costs and improve client experiences.
Investors and corporate executives generally agree that technology investment is crucial to the company’s profitability. Despite economic concerns, IT investment is expected to increase by more than 5% in 2024. It underscores technology executives’ need to demonstrate measurable effects on business financials.
Operators proactively position themselves as cost-effective, experience-focused, or ecosystem-focused companies as networks and products merge. Operators may outpace rivals and achieve hypercharge with AI use cases customized to each strategic emphasis.

The industry must adopt the idea of an AI-enabled company to benefit from this change entirely. It entails integrating technology into the very process of the business.

AI in Telecom: Examples and Impact on the Industry

Business Areas Where AI Adoption Is Advantageous

Let’s now investigate some particular technical areas where AI in telecom excels. Understanding these crucial AI-driven sectors is vital to businesses providing telecom services to succeed:

Network optimization. It allocates traffic and workloads within the telecommunications infrastructure to deliver the best quality services at the most affordable price. Automation frees up network engineers to focus on other crucial tasks.
Marketing and sales powered by data. AI plays a crucial role in telecom by leveraging customer data for strategic decisions in marketing telecommunications and sales. Telecom companies collect extensive data from customer interactions, transactions, and usage patterns. AI analyzes this data and extracts valuable insights to drive personalized marketing and sales campaigns.
Fraud detection and security. Telecom companies, handling vast data, are prime targets of cyber threats. AI is crucial in fraud detection. It analyzes patterns in real time to spot potential breaches swiftly. This enables providers to respond promptly and safeguard both infrastructure and customer data. AI’s adaptive nature makes it an essential telco tool in security.
Automation of robotic processes (RPA). Robotic Process Automation (RPA) is always at the top in digital transformation projects. It speeds up corporate processes and reduces document processing times. It provides instant concrete benefits when used strategically. If you enhance RPA’s effectiveness with AI, you may get more profound impacts like anomaly identification and (semi-)automatic mistake correction right from the start.
Preventive maintenance. AI and ML gather essential data and quickly make judgments from value prediction to client segmentation. Predictive telecom analytics encourages proactive maintenance by alerting users to possible hardware problems. It augments the general customer experience by reducing the number of help queries.
Virtual assistants. Telecom companies are rapidly replacing human operators with virtual assistants and AI-driven chatbots. They aim to reduce costs and provide customers with a quicker, more comfortable method to get answers to their inquiries. It became particularly crucial when the pandemic severely restricted the ability of large-scale call centers to operate.

With its outstanding abilities in mining, processing, and analyzing data, more than 65% of telecom companies have embraced AI. Today, AI applications in telecom extend beyond data analysis. They contribute to improving services, cutting costs, and enhancing the overall user experience.

Globally-Known Examples of AI in Telecom

Now, let’s look into the practical uses of AI in the telecom sector through inspiring case studies. They highlight the technology’s revolutionary potential. These examples offer concrete insights into the effects of AI on the telecom industry.

China Mobile

The largest mobile service provider in the world, China Mobile, is fighting fraud with big data and AI-enhanced solutions. They just launched Tiandun. It’s a brand-new, big, data-driven anti-fraud technology. This cutting-edge technology can detect and tell fraudulent activity apart from legitimate ones. It makes intercepting spam messages or calls possible.

Vodafone

With the launch of TOBi, a virtual assistant app, Vodafone Group, a global British telecoms company, has improved customer service. TOBi personalizes the sales process to each customer and adds a personal touch to client involvement. As a text bot, TOBi is excellent at responding to consumer inquiries quickly. It fixes typical problems and makes product recommendations that suit better. This kind of service is a quickly developing trend in the telecom industry.

Deutsche Telekom

They are making substantial investments in artificial intelligence across multiple aspects of their business. Tinka, their newly unveiled AI-driven chatbot, boasts the capability to deliver over 1500 responses to consumer inquiries simultaneously. Additionally, they are integrating AI into both their infrastructure and services, along with deploying intelligent business planning tools.

Tips and Reminders on Using Artificial Intelligence in Telecom

Creating revolutionary AI necessitates a systematic approach. Let’s look into the following fundamental ideas and considerations:

Develop fundamental AI skills in a reusable, modular framework. You should be able to apply it to many operator scenarios. As an illustration, a contact center and a retail setting might use the same fundamental forecasting engine. It’ll cut down on deployment time and eliminate task duplication. Moreover, it’ll increase the return on investment (ROI) of your AI investment.
Enhance value generation and encourage reuse. Tightly connect AI capabilities using a model architecture strategy incorporating several AI models. Several customer-facing models might use the digital propensity model as their primary model as input.
The foundation of any AI should be digital twins. They are digital copies of real-world entities like people, processes, or assets centered around data products. The data in the digital twin has been purposefully arranged and modeled. It facilitates simple, reusable, and manageable usage for all requirements and acts as a single source of truth for all models.
Use machine learning operations (MLOps) to increase model stability and reduce the length of the analytics development lifecycle. Automating the integration and deployment of the code that powers AI capabilities is a common task of MLOps.

To sum up, creating transformational AI necessitates a systematic and comprehensive strategy. These guidelines improve productivity and set the foundation for long-lasting and significant AI deployments in various operational scenarios.

Summing Up

AI adoption is an efficiency-rising process. The key is to develop a strategic vision that motivates and unties your team. It’s critical to ensure the smooth performance of your operational model and change management for implementation. Make sure everyone is on board. You will see the broad adoption of AI inside your telecom firm as you embrace devotion and navigate through the path. Although the process may be lengthy, operators who take the AI-based approach will undoubtedly become leaders in the upcoming revolutionary stage.

AI solutions at GlobalCloudTeam are dependable partners for media and telecom companies. They streamline processes, improve customer support, and help you navigate the digital world. Our services are efficient and innovative for network optimization or creating unique content management. Prepared to accelerate your digital growth? Join GlobalCloudTeam to unleash the full power of AI and build a connected, efficient future for your company.