Communication service providers (CSPs) are used to innovation and the evolution of business models, but the speed of change during the past few years has been particularly significant. Balancing static – and in some cases decreasing – revenues with the need for massive investment in 5G just to keep pace, let alone surge ahead, is a real challenge. It is likely that we will see some business failures in the near future if CSPs cannot see ways to balance the books.
Up until very recently, when ‘network investments’ were mentioned, this was often referring to infrastructure, operations and maintenance. New ways of extracting the most value from a network are now emerging, and these are being driven by the emergence of AI as a key component of an CSP’s toolbox. Arguably the most powerful is generative AI (GenAI), which has the potential to revolutionise the telco industry in the true sense of the word. GenAI will change the way we communicate, reshape the way services are provided, optimise network performance to new levels of efficiency, improve network management, and overall enhance the customer experience.
Whereas ‘standard’ AI uses algorithms to analyse and make decisions based on data that has been provided, GenAI uses a variety of prompts (existing text, audio, or images), as well as artificial neural networks to identify patterns in existing data to create new content. GenAI becomes more intelligent over time, learning from existing material and continuing to evolve as more information is provided. This enables it to perform creative tasks and predict outcomes in much the same way as a human – but much, much faster.
GenAI is already accelerating transformation across industries, and network operators are no exception. A survey conducted by Capgemini Research Institute, found that 96% of telecom company leaders are strong advocates of GenAI. The report also shows that almost 70% of telecom executives surveyed believe that the benefits of using GenAI outweigh associated risks, and 12% believe GenAI will significantly disrupt their industry.
Almost 50% of telecom executive respondents currently have ongoing GenAI pilots, with more than a third of those having a dedicated team and budget. Among large telecom companies, more than 70% of the surveyed respondents are using, or are planning to use, GenAI for IT functions.
Improving network performance is one of the most significant ways that GenAI can transform the telecom industry. Optimising networks and making them more efficient means faster network speeds, better reliability, and lower costs.
Networks have become increasingly complex with the proliferation of devices and the demand for high-speed, low-latency connectivity. GenAI algorithms can analyse vast amounts of data to predict network congestion, optimise routing, and enhance overall network performance. With its ability to constantly adapt to changing conditions, GenAI can help to ensure seamless connectivity and improve end user quality of service, as well as making networks more reliable though its predictive capabilities. By anticipating equipment failures before they occur, GenAI can alert operations teams so proactive measures can be taken to avoid network failures.
GenAI can create virtual assistants that can rapidly respond to customer questions with accuracy, giving CSPs the ability to greatly enhance their customers’ experiences. With these GenAI-driven virtual assistants, customers will receive 24/7 personalised interactions and services tailored to individual preferences, with precise responses given in natural language.
By analysing data for anomalies, patterns, and compliance, GenAI can be hugely valuable in cutting fraud and increasing business assurance. With 24/7 monitoring and collaboration with human experts, GenAI will enable CSPs to deliver better levels of fraud prevention and enhance service quality. With the vast amounts of sensitive data that telecom networks handle, security is a top concern across the industry. Implementing GenAI means anomalies can be detected in network traffic, fraud-like SIM card cloning identified, and unauthorised billing highlighted, so CSPs can proactively counter security threats. This will have a positive impact on brand integrity and, in turn, levels of customer trust.
Used across content generation and marketing activities, GenAI can create personalised content based on user preferences and behaviours. This level of automated customisation – which can be used across all media to create relevant, targeted content – will greatly enhance the power and effectiveness of advertising campaigns. This gives CSPs a higher return on their marketing investment as well as being a much more efficient way to create a constant variety of engaging content.
GenAI is arguably the most powerful catalyst for change that today’s CSPs will see in their lifetime. With the ability to make network operation and maintenance more efficient, customer interaction more productive, fraud prevention and security more robust, and marketing and advertising more effective, it has the power to drive the telecoms industry forward into a new era of investment where profitability is far more easily achieved.
Article by Harsha Angeri, a VP of corporate strategy and head of AI business, at Subex
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