Growth Opportunities for Telecommunications Service Providers in Artificial Intelligence, 2024

Growth Opportunities for Telecommunications Service Providers in Artificial Intelligence, 2024

AI-powered Innovation Unlocks New Revenue Streams, Operational Efficiency, and Customer Value

AI refers to technologies that emulate human intelligence and assist decision-making with self-learning capabilities. Machine learning (ML) is a sub-field of AI that focuses on imitating how humans learn and includes the development and use of algorithms that can learn and adapt without following explicit instructions.

Telcos have emerged as essential channel partners for procuring AI technology. Their ability to work closely with enterprises to build solutions, offer professional and managed services, and integrate AI-based tools and platforms make them crucial ecosystem participants.

All major telcos have started implementing AI technology; however, they are at different stages of maturity—from proofs of concept to deploying multiple AI use cases in scale. A clear strategy and roadmap articulation are critical in AI adoption. Few telcos have architectures that support integrated enterprise data pools, including data gathered from real-time sources, indicating low data readiness to support AI applications. This results in difficulty training AI models for GenAI applications and ineffective AI outcomes.

This report highlights emerging AI use cases across telcos and horizontal business functions, drivers, and restraints impacting the AI market. It also offers telcos opportunities to explore industry-specific AI solutions and data management.

Frost & Sullivan conducted detailed primary interviews with telcos that stand out in different regions to generate a competitive profile and understand relevant AI developments, strategies, and value propositions. In addition, we performed extensive secondary research across our internal database and other public information sources, such as financial reports, industry associations, statistic agencies, and specialized websites.