In the current digital era, Communication Services Providers (CSPs) have a great opportunity to expand and diversify their revenue streams far beyond just connectivity. While their traditional role was limited to enabling voice communication and data exchange, they can now provide a wide variety of innovative services to their B2C and B2B customers globally.
Several advanced technologies are playing and will continue to play a growing role in making this efficiently possible. At the top of the list of these technologies, artificial intelligence (AI), and specially its revolutionary flavor — generative AI (GenAI), offers transformative potential for CSPs.
Analysts also agree that GenAI will be a catalyst for growth for telcos after a period of stagnation, as long as they can adapt and transform to embrace such innovations with agility. In February 2024, a McKinsey article shared insights from a survey of leaders from 130 telcos, where more than 85% of executives are cautious to attribute more than 20% revenue or cost savings impact by domain to GenAI.
Understanding GenAI
Now let us take a step back to understand what GenAI really is. Generative AI (GenAI) refers to machine learning models that can create new data from text and images to audio and code. They do so by learning from large datasets. Unlike traditional AI, which focuses on pattern recognition and decision-making, GenAI mimics human-like creativity. Recent innovations like Generative Pre-trained Transformers (more commonly known as GPT) and image-generation models are examples of GenAI’s growing capabilities.
In telecom, there are mainly 7 domains where GenAI can have a big impact: customer operations, IT and software engineering, network planning and operations, training and development, product innovation, sales and marketing, and business operations. In each of these domains, GenAI is mainly positioned as a value generation assistant that can save time, manual efforts and even costs.
GenAI in action: In the telecom industry
The current phase of GenAI for telcos is quite focused on developing and rolling out replicable use cases in different domains, aiming to enhance efficiency, saving time and costs, and supporting the generation of new revenue streams.
Among these use cases, we will focus on the following in the first phase:
1. Customer service automation
Telcos have large volumes of customer queries related to billing, service outages, and technical support. GenAI-powered chatbots and virtual assistants are significantly improving customer experiences by offering personalized, human-like interactions in real time. These AI tools reduce call-center loads and shorten response times, leading to higher customer satisfaction. Moreover, they continuously learn and improve, reducing operational costs while scaling support services.
2. Network optimization and management
Managing massive telecom networks requires constant monitoring and optimization. GenAI can analyze network performance data, predict issues, and automate problem resolution. For instance, AI models can forecast demand surges, allowing telcos to allocate resources proactively, thereby avoiding bottlenecks. This application is particularly crucial as 5G networks roll out, providing more complex and data-heavy services.
3. Fraud detection and prevention
Telecom companies face increasing risks from fraud, especially in mobile payments and identity verification processes. Generative AI models can identify unusual patterns, detect potential fraud, and predict emerging threats with greater accuracy than traditional rule-based systems. This predictive capability allows telcos to respond to threats faster and implement more effective security measures.
4. Marketing and personalization
GenAI enables telcos to create personalized marketing campaigns by analyzing customer behavior and preferences. AI models can automatically generate unique marketing content — such as offers, emails, and advertisements — that resonate with individual customers. This level of customization fosters stronger customer relationships and improves retention rates.
5. Content generation for media services
As telcos diversify into media and entertainment services, GenAI’s ability to create or enhance digital content (for example, videos, music, or promotional content) opens new revenue streams for them. AI-generated content can reduce production costs and help companies cater to a broader audience through personalized media experiences.
Change the game with AI
At Eviden, I lead the telecommunications, media and technology portfolio engagement. Armed with around five accelerators, I have seen these solutions and services adapted to fulfill clients’ requirements for a secured, sovereign and ethical deployment. These accelerators integrate with partners’ platforms and solutions to boost telco’s operations.
Take a look at some of the accelerators that are game changers in the AI space:
- Industry accelerator with pre-packaged use cases for different industries
- Builder accelerator to build, manage and optimize solutions
- Model accelerator to leverage the latest GenAI frameworks
- Performance accelerator for localized low-latency, dedicated infrastructure with our HPC / BullSequana products
- Security accelerator to guarantee secured AI operations
Connect with me and let’s discuss how you can adopt GenAI as a part of your business strategy for extensive, secure and sovereign use.
Learn more about Eviden’s GenAI offerings and prepackaged use cases for different industries, including the telecom space.
