The telecommunications industry stands at a pivotal juncture, with Generative AI (GenAI) promising to revolutionize the sector. Telecom giants, known for their sprawling networks and cutting-edge hardware, are now grappling with software that can think, create, and innovate. Telecom companies are adapting their hardware-centric mindset to embrace the fluid, creative potential of GenAI. At Comviva, our latest research, “From Now to Next – Crafting the Future of Marketing with GenAI,” offers a comprehensive look at how telecom companies are approaching this transformative technology.
The Current GenAI Landscape in Telecom
Our findings reveal that the telecom sector is approaching GenAI with a mix of enthusiasm and caution. The current landscape shows a diverse range of engagement:
- 29% of companies are in the initial exploration phase, assessing the potential of GenAI.
- 30% are developing strategic plans for GenAI implementation.
- 15%are assessing vendors and technology solutions to secure the right partnerships.
- 17% have progressed to pilot testing, gaining hands-on experience with GenAI applications.
- 9% have moved to full-scale deployment, setting benchmarks for the industry.
But it’s not all smooth sailing. The telecom industry is facing severe hurdles in its GenAI journey:
- The Skills Gap: A staggering 42% of telecom companies report needing in-house expertise as their primary hurdle, surpassing the 35% cross-industry average.
- The ROI Puzzle: 20% of telecom companies rank uncertainty around return on investment as their top concern. This is notably higher than the 12% average across all industries, reflecting the capital-intensive nature of telecom operations.
- The Data Dilemma: For 35% of companies, safeguarding customer data is a paramount challenge. The vast amounts of sensitive information telecom providers handle make this a critical issue.
- The Use Case Conundrum: 28%of companies are still unsure how to apply GenAI to achieve measurable business outcomes.
Turning the Tide: How Telecom Can Win with GenAI
To overcome these challenges and harness the full potential of GenAI, telecom companies need to take decisive action:
- Bridge the Expertise Gap: Companies must prioritize upskilling their workforce and attracting new talent with AI expertise. This might involve partnerships with educational institutions or creating in-house training programs.
- Start with Small Wins: Rather than attempting immediate large-scale transformation, use GenAI for manageable projects such as personalizing customer interactions or optimizing network performance.
- Enhance Data Management: Robust data governance frameworks and advanced security measures are essential. These not only protect customer information but also build trust, a crucial asset in the telecom industry.
- Create New Use Cases: Telecom companies should actively test new GenAI solutions, from intelligent customer service chatbots to predictive network analytics. Collaboration with technology partners can further accelerate innovation.
The Road Ahead
The telecom industry’s cautious approach to GenAI isn’t a sign of reluctance – it’s a testament to their commitment to getting it right. However, to truly harness the power of GenAI, telecom companies need to step up their game. It’s time to move from cautious observation to bold action.
The future of telecom with GenAI isn’t just about fancy new tech – it’s about reimagining what’s possible. It’s about creating experiences that wow customers, streamlining operations in ways we never thought possible, and setting new standards for the industry.
At Comviva, we are excited to witness and support this ongoing transformation. Telecom companies that embrace GenAI with open arms and dare to innovate and disrupt will lead the charge into this exciting new era. The future of telecom is being rewritten, and GenAI is holding the pen. The question is, who will be brave enough to help write the story?
