The past few months have seen an explosion in media articles, conference panel discussions, and watercooler conversations about AI. Generative chatbots such as ChatGPT—and Google and Microsoft’s own ensuing versions—have everybody fascinated with how AI could shape our futures.
Focusing less on chatbots and image-generating, but also seeing a growth in AI-related conversation, is the telecom sector. AI was one of the hot topics at this year’s Mobile World Congress in Barcelona, featuring as a talking point in many major keynotes. Even wireless technology giant Qualcomm also announced the inclusion of native support for AI applications on smartphones for their future R&D focus, emphasizing the role of AI in 5G Advanced in terms of design and operations.
AI-based technology advancements in telecom are poised to grow to keep up with the growth of network complexityto make more informed operational decision required to optimize network resources. So, what are the top trends for AI in telecom in 2023 that will keep you ahead of the race?
1. AI is already here, and it’s delivering results
The majority of telecom industry professionals responsible for implementing AI technologies reported using or planning to use AI, according to a recent survey. Specifically, 34% said their company had been using AI for more than six months, 31% were in the research or assessment phase, and only 5% said their company was not using or planning to use AI. This, unsurprisingly, shows that AI isn’t some hypothetical future state of telecom—it’s already here delivering benefits for the earliest adopters.
Telecom companies that have trialed or implemented AI have seen real impacts on both profits and cost reduction; 73% of respondents said their companies had seen increased annual revenue, and 80% said they had seen reduced costs. While AI won’t replace most jobs, it certainly offers another means to cost-cutting efforts through downsizing retail headcounts, such as by limiting certain services in store and forcing digital transactions.
The biggest areas of focus for the next year were network operations and customer experience optimization. Even now, AI is being introduced daily by network operators and telecom retail businesses as a customer service function. There are some compelling use cases for telecom operators looking to optimize customer-service operations and improve decision-making through predictive analytics.
As this technology scales, it is likely that soon we will see the end consumer being able to manage their carrier services and wireless retail experiences themselves, via AI-powered tools. This will have a significant impact on those laggards who have not yet even implemented omnichannel solutions such as buy/reserve online, pick up in-store (otherwise known as BOPIS/ROPIS). In fact, digital transformation could experience a second renaissance that could widen the gap in brands’ capabilities, depending on how their current tech stack is serving their consumers. Telecom retail operators not at the forefront of these technologies risk being left behind.
2. AI will be used to fight growing rates of scams and cyber-attacks
The rate of cyber-attacks around the world is increasing rapidly. Cybersecurity provider Radware reported a 203% surge in volumetric DDOS attacks in the second half of 2022 compared to the first half. Additionally, there has been a significant increase in spam and scam SMS messages and robocalls in recent years, prompting the FCC to consider implementing regulations that would require service providers to block potentially fraudulent traffic.
The sheer volume of malicious and fraudulent activity has many companies investigating AI for implementation of more advanced cybersecurity solutions that can use AI to block malicious network activity. AI also can provide early detection of threats, allowing human cybersecurity teams to respond quickly to threats as they emerge.
3. Regulation of AI will become more common as regulators catch up with real-world impacts
Apparently, there is some controversial arguments around serious problems with AI implementation, as with any new technology. What would happen when AI is applied without due consideration for ethics and potential real-world impacts? Some of the most widespread concerns to be aware of regarding increased use of AI technologies are concerns about privacy, ethics, and increased algorithmic bias.
Out of all of these, algorithmic bias is perhaps the most concerning as it is already causing real world harms. Commercial facial recognition systems have been shown to discriminate based on race, resume screening systems discriminate on gender, and AI-driven clinical health tools display both socioeconomic and racial bias.
Given these impacts, it’s unsurprising that the number of laws being passed about AI are on the rise. A survey of legislative records in 25 companies showed that the number of bills containing “artificial intelligence” passed into law went from just 1 in 2016 to 18 in 2021. In addition to legislation, there are also 173 AI ethics frameworks and guidelines in place around the world.
As both the telecom and retail industries grapple with AI and its possibilities, it is necessary to understand what’s happening and how it is impacting the world to better plan your own business strategies. These three trends just provide a glimpse of what is to be expected in this area; more game-changing applications will inevitably emerge.
