AI's impact on networks
A survey by NVIDIA indicates that 83% of telecom professionals believe AI will be extremely important for their business success in 2023. AI's contributions to wireless networks and telecom are significant.
AI can help identify network anomalies such as congestion, interference, or outages, allowing corrective actions like rerouting traffic, adjusting parameters, or deploying backup systems. This proactive approach also prevents network failures and optimizes performance. For example, AT&T has used AI to reduce network incidents by 30% and improve network availability by 15%.
AI simplifies and automates network operations, from planning and provisioning to configuration and troubleshooting. Optimizing resource allocation, energy consumption, and capital expenditure aids in reducing network costs. For example, Verizon utilized AI to cut network energy consumption by 15% and save $1 billion in capital expenditure over five years.
AI's involvement in creating new network capabilities, enabling software-defined networking (SDN) and network function virtualization (NFV), empowers telcos to configure and control network functions and services dynamically. It also supports edge computing, offering low-latency, high-bandwidth services.
T-Mobile's optimization of its 5G rollout, using AI to select optimal sites for deploying new equipment, exemplifies AI's contributions to the evolution of wireless networks.
AI is being used in wireless networks and telecom to improve efficiency, performance and customer satisfaction. One of the applications of AI is network slicing, which enables operators to create multiple virtual networks on a single physical infrastructure. This allows them to offer customized services and quality of service to different types of customers and devices. For example, network slicing can provide low-latency and high-reliability connections for autonomous vehicles or remote surgery, while also providing high-bandwidth and low-cost connections for video streaming or social media.
Another application of AI is network optimization, which involves using machine learning and data analytics to monitor, analyze, and adjust network parameters such as traffic load, congestion, interference and signal quality. This can help operators to reduce operational costs, enhance network performance and reliability, and prevent network failures and outages.
Source: Qualcomm
AI benefits for wireless customers
AI also enhances customer experience and retention in wireless networks and telecom. For instance, AI can provide personalized recommendations, offers, and services to customers based on their preferences, behavior, and feedback. AI can also be used to automate customer service processes such as chatbots, voice assistants and self-service portals, which can reduce waiting time, increase customer satisfaction and loyalty, and generate new revenue streams.
AI is transforming the telecommunications industry by enabling personalized and engaging customer experiences across various touchpoints with:
- Understanding customer preferences and needs: AI can analyze customer behavior, preferences, and feedback to provide relevant products and services that meet their needs. For example, AT&T uses AI to segment customers and offer tailored plans and bundles.
- Providing relevant products and services: AI can help telcos design and launch new products and services aligned with customer demand and market trends. For example, T-Mobile uses AI to optimize its network coverage and capacity.
- Improving customer service: AI can automate routine tasks and provide instant, everyday support to customers through chatbots and voice assistants. For example, Orange uses AI to handle 50% of its customer inquiries through its Djingo chatbot.
- Offering self-service options: AI can empower customers to manage their accounts, usage, billing, and preferences through self-service portals and apps. For example, Vodafone uses AI to provide personalized tips and offers to customers through its My Vodafone app4.
AI also empowers telcos to attract and retain customers through personalized offers, promotions, and recommendations. Some of the benefits of AI for telcos are:
- Increasing conversion rates: AI can help telcos increase sales by providing personalized recommendations, cross-selling and upselling opportunities, and dynamic pricing. For example, Orange increased its conversion rate by 40% by using AI to recommend the best offer for each customer.
- Increasing average revenue per user: AI can help telcos increase revenue by providing customized plans, bundles, and add-ons that suit customer needs and preferences. For example, Orange increased its average revenue per user by 15% by using AI to offer personalized bundles based on customer usage patterns.
- Reducing churn rates: AI can help telcos reduce customer attrition by providing proactive customer service, loyalty programs, and retention offers. For example, Sprint reduced its churn rate by 10% by using AI to predict customer churn and offer incentives to retain them.
AI enables personalized and engaging customer experiences across various touchpoints, from physical stores and online platforms to call centers and mobile devices. It achieves this by understanding customer preferences and needs, providing relevant products and services, improving customer service, and offering self-service options.
Additionally, AI empowers telcos to attract and retain customers through personalized offers, promotions, and recommendations. AI creates interactive and immersive customer experiences using voice recognition, natural language processing, computer vision, and machine learning. Voice assistants, chatbots, video analytics, and smart home solutions are becoming more sophisticated, improving the way customers interact with telcos.
Furthermore, AI enhances customer security by protecting data and identities from cyberattacks and fraud through advanced encryption, authentication, and verification techniques. It also allows telcos to monitor and prevent unauthorized access and misuse of customer accounts and devices.
AI empowers customers by educating them about products and services, giving them more control and choice over their usage, billing, and preferences. Features like Verizon's Tech Coach chatbot and Smart Family exemplify this approach.
AI creates interactive and immersive customer experiences using voice recognition, natural language processing, computer vision, and machine learning including these benefits:
- Enhancing voice interactions: AI can enable natural and conversational voice interactions between customers and telcos through voice assistants, voice biometrics, and speech analytics. For example, Comcast uses AI to power its Xfinity voice remote that allows customers to control their TV with voice commands.
- Enhancing text interactions: AI can enable natural and conversational text interactions between customers and telcos through chatbots, natural language understanding, and sentiment analysis. For example, Verizon uses AI to power its Digital Customer Experience platform that allows customers to chat with agents or bots via text or social media.
- Enhancing visual interactions: AI can enable rich and engaging visual interactions between customers and telcos through video analytics, facial recognition, and augmented reality. For example, SK Telecom uses AI to power its T Live Caster app which allows customers to watch live sports in 360-degree VR.
- Enhancing smart home interactions: AI can enable seamless and convenient interactions between customers and their smart home devices through IoT, edge computing, and cloud services. For example, Deutsche Telekom uses AI to power its Magenta SmartHome app that allows customers to control their smart home devices with voice or gestures.
AI enhances customer security by protecting data and identities from cyberattacks and fraud through advanced encryption, authentication, and verification techniques, including:
- Protecting data privacy: AI can help telcos encrypt and anonymize customer data to comply with data protection regulations such as GDPR. For example, Telefonica uses AI to anonymize customer data using differential privacy techniques.
- Protecting identity verification: AI can help telcos verify customer identity using biometric features such as voice, face, or fingerprint. For example, Telstra uses AI to verify customer identity using voice biometrics.
- Protecting fraud detection: AI can help telcos detect and prevent fraud such as SIM swapping, account takeover, or subscription fraud. For example, Airtel uses AI to detect fraud using behavioral analytics.
- Protecting network security: AI can help telcos monitor and secure their network infrastructure from cyberattacks such as DDoS or malware. For example, BT uses AI to detect network anomalies using machine learning.
AI empowers customers by educating them about products and services, giving them more control and choice over their usage, billing, and preferences. Some of the benefits of AI for telcos are:
- Educating customers: AI can help telcos inform and educate customers about their products and services using interactive guides, tutorials, and FAQs. For example, Verizon uses AI to educate customers about its 5G network using its 5G Lab app.
- Giving customers control: AI can help telcos give customers more control over their usage, billing, and preferences using smart alerts, notifications, and settings. For example, Verizon uses AI to give customers control over their family’s online safety using its Smart Family app.
- Giving customers choice: AI can help telcos give customers more choice over their plans, bundles, and add-ons using flexible and customizable options. For example, AT&T uses AI to give customers choice over their entertainment options using its WatchTV app.
