The integration of artificial intelligence (AI) and large language models (LLMs) into the telecoms industry is accelerating at a rapid pace, driving significant changes across various areas of the sector. Telcos are increasingly relying on AI-powered solutions to enhance their offerings and introduce new, innovative services. While the use of AI in the telecoms space has been primarily focused on extracting insights from customer and network data, the emergence of generative AI tools such as ChatGPT and Claude is making it easier for telecom companies to automate a wide range of processes.
Recent data from a survey by AWS reveals that nearly half (48%) of telecoms will adopt AI solutions within the next two years. However, some of the biggest players in the industry are already taking steps to integrate these technologies. South Korea’s SK Telecom is one example of a company leading the way. Shortly after the release of ChatGPT, SK Telecom committed to embedding AI into its core business operations, raising its investments in AI from 12% to 33% by 2028. This move is focused on enterprise data, private networks, and personalised content. The company also joined forces with Deutsche Telekom to create a telecom-focused LLM, designed to help communications service providers (CSPs) deploy generative AI models efficiently.
The impact of AI on the telecom industry can be observed across several key areas. One of the most promising applications is in network optimisation. AI is enabling networks to become increasingly automated, minimising the need for human intervention. Software-defined networks can now self-build, optimise, and heal, responding dynamically to changing conditions. These systems adjust quality of service (QoS) in real-time based on user demand, ensuring efficient resource allocation and resolving potential issues before they escalate. AI-powered real-time analytics constantly monitor all aspects of a network, identifying and addressing inefficiencies. The use of digital twins, such as NVIDIA Omniverse, offers additional insights by simulating potential failures and allowing for more informed decision-making.
Another area that stands to benefit significantly from AI is business operations. With AI, telecom companies can reduce operational costs, improve supply chains, and optimise inventory management. AI-driven insights provide valuable data on customer behaviour, which in turn helps companies predict trends and make more informed business decisions. Products and services can be tailored to individual customers at the point of sale, maximising profitability while ensuring customer satisfaction. AI is also streamlining business support systems, automating tasks and allowing for natural language interaction between humans and AI systems. These developments have the potential to drastically improve efficiency, speed up product creation, and enhance customer experiences.
Customer experience is another domain where AI is making a substantial impact. AI chatbots, capable of understanding natural language, can handle customer inquiries quickly and accurately, providing efficient customer service. These chatbots are also integrated with emotion recognition technology, enabling them to tailor their interactions to the specific needs and preferences of each customer. Hyper-personalised marketing strategies, based on AI analysis of customer data, allow for more targeted product and service offerings. Additionally, predictive insights into customer behaviour enable companies to address issues before they arise, further improving customer satisfaction.
Despite these advancements, the idea of a fully AI-powered telecom business with no human employees remains unlikely in the immediate future. While AI can automate many processes, there are still challenges, such as the limitations of LLMs, which can produce errors or display bias. Furthermore, consumers remain sceptical about AI-generated content in customer-facing roles. Studies have shown that many people prefer interacting with humans, especially for more complex inquiries. However, when used correctly, AI can complement human-driven collaboration, improving overall efficiency without compromising customer satisfaction.
Telecoms is one of the industries most prepared for the AI-driven future, with a significant portion of its workforce already undergoing retraining to adapt to new technologies. Telefónica, for instance, runs Europe’s largest internal retraining programme. Nonetheless, the industry is still in the early stages of AI integration, and it will take time for suppliers to refine their AI offerings and establish secure practices for handling personal data. While many legal and ethical concerns still need to be addressed, particularly around the use of generative AI, there is no denying the transformative potential of these technologies.
Companies that embrace AI and LLMs will likely experience improvements in customer satisfaction and business efficiency, with the ability to predict and prevent problems before they occur. Security will also be enhanced, ensuring safer networks for all users. For those looking to take their first steps towards AI integration, adopting tools like Cerillion’s AI-powered Enterprise Product Catalogue could provide a competitive advantage, allowing for faster product development and deployment. AI is poised to reshape the telecom industry, and those who adapt will find themselves at the forefront of innovation.
AI is rapidly becoming a key player in the telecom industry, offering numerous opportunities to optimise operations, improve customer experiences, and drive innovation. While challenges remain, the potential benefits make it clear that AI will play an increasingly important role in the future of telecoms.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
