AI in Telecom: Why Acting Now Matters

Why AI, and why now?

Most industries, telcos included, see AI as an opportunity to transform their future. With so much cost-saving potential and revenue-generating opportunities, entire departments are already seeing vast improvements. It's no wonder that 70 percent of 1,600 telcos surveyed by SAS have either fully implemented the tech or are looking at how they can introduce it to their business.

The more telco service providers work with AI, the more competitive they become compared to those not using it. It's important to act quickly to experience the tool's long-term business benefits:

• Cost optimization: AI can automate operations to lower labor costs and rapidly analyze swathes of data to help reduce expensive bottlenecks.
• Cost avoidance: AI-powered tools can crunch data from all sorts of sources—network telemetry, CRM records, even customer sentiment—to spot early warning signs of churn and step in with targeted offers and better support.
• Revenue generation: Advanced analytics, intelligent customer insights, personalized marketing and IoT solutions all reveal new profit opportunities.

AI can also have a big impact when it comes to looking after those most vulnerable in our society. Enhanced customer support tools don't just boost satisfaction, they also fight increasingly intelligent threats—look no further than our partner Virgin Media O2, whose 'Daisy' AI tool stalls scammers. Activities like these don't just keep customers safe; they also increase telcos' Net Promoter Scores (NPSs).

With AI unlocking countless new possibilities, innovation moving at an unprecedented pace and industries setting new benchmarks for customer experiences, the message is clear: AI adoption is no longer a choice; it's a necessity. 

If AI is so great, why aren't all telcos using it?

While AI is vital for long-term success, some businesses think it's not the easiest technology to implement or justify the upfront costs and return on investments (ROIs). AI's constant reinvention can make it hard to integrate with traditional security, for example, but it shouldn't mean you have to halt your plans. You just need to take a closer look at those potential challenges to understand how you can overcome them.

Cost implications

Being a versatile, end-to-end technology, AI implementation costs can quickly ramp up. Part of this is because AI adoption in telcos can take many forms, from casually experimenting with open-source tools to committing to building larger infrastructure. Most will land somewhere in between—be it cheaper, off-the-shelf AI solutions or pricey, pre-trained models for building custom applications.

On top of that, making AI work for a specific need often means reworking data, which can quickly drive up costs. Suddenly, getting board-level buy-in for AI investments isn't so straightforward.

Unclear ROI

Better efficiency, stronger security, and faster processes are everywhere in AI use cases. However, it's often hard to pin down just how much ROI this creates, like in security threats, where successful defences save an unknowable amount of money. Not having concrete numbers can make pitching for AI business use more difficult.

More often than not, though, the real value of AI comes from a compound effect, where multiple AI use cases need to work together before companies break even. It's important to remember that AI adoption also brings broader benefits—shaping company culture, driving innovation and even improving talent retention. These impacts might be harder to measure, but they're just as crucial for long-term success and shouldn't be overlooked.

Security friction

According to Dave Dewalt, CEO and Founder of NightDragon, $50 billion has been invested in AI applications between late 2023 and late 2024. In that same period, just $200 million went into security apps; that's 0.4 percent of the amount that went towards AI. Numbers do not lie—it is clear that security is not getting the level of attention it deserves and needs when it comes to AI.

This comes with its own set of challenges, from the familiar territory of infrastructure security—protecting data sources and enforcing access controls, for example—to making sure pre-trained models meet regulatory and internal security standards. As AI continues to evolve, so do the security risks.

How can telcos overcome AI challenges?

We've established that AI adoption is no longer a question of if but when. But the real challenge for telcos is figuring out how to approach it in a way that drives revenue and long-term growth. With its potential to cut costs and generate future income, the opportunity is clear, but so are the barriers to entry.

From unpredictable costs to complex implementation challenges, getting started isn't always easy. This can leave decision-makers feeling overwhelmed and sometimes losing sight of the technology fundamentals that truly matter.

AI is undoubtedly a significant investment, but the right partner can make all the difference in helping telcos navigate their journey—understanding where they are, where they need to go and how to get there. 

At World Wide Technology, we bring over 35 years of experience, deep industry expertise and insights from leading partners to support telcos at every stage of their AI adoption. Our approach brings all AI tech and its uses together to help support your strategy. And covers key steps such as use case ideation, data and model preparation, customization, and more to ensure a smooth and impactful AI transformation.

Ready to make AI-powered progress?

AI has quickly become a necessity for competitive success in the world of telecommunications. Most telcos have already adopted it or are planning to, meaning that the later you join them, the higher the risk of falling behind in areas like security, customer experience and operational efficiency.

The best way to get ahead is with a trusted technology partner who will work alongside you to navigate your biggest challenges and opportunities when it comes to AI implementation.

If you're interested in capitalizing on AI and getting the biggest return possible, there are several options to get started. You can learn more about our AI Proving Ground, join our AI training day, or reach out to our team's Chief Technology Officer, Simon Dumbleton, for more information.