Operators step up AI solutions to overcome revenue crisis

Telecommunications operators are leveraging artificial intelligence (AI) to provide innovative solutions that help enterprises enhance efficiency, reduce costs, and drive digital transformation.

Smartphone user in Malaysia
Smartphone user in Malaysia GSMA

GSMA Intelligence said mobile operator capex during 2024–2030 will be $1.3 trillion. It did not reveal the size of operator investment in AI.

The telecom industry has been at the forefront of AI adoption, utilizing it in network operations, energy optimization, customer call centers, and retail. Operators are increasingly leveraging AI to improve efficiency, combat sophisticated threats, and meet evolving customer expectations.

Early deployments have primarily focused on internal solutions to enhance network performance and customer service operations, such as network fault detection and automation in customer-care centers. For example, China Unicom and ZTE have developed an AI-driven anti-fraud system to strengthen network defense, while Vodafone, in partnership with Google, is applying generative AI to optimize the network lifecycle.

However, there is a growing shift toward developing AI solutions for external customers, particularly in the enterprise segment. This transition is driven by the need for new revenue streams and the increasing demand for AI-powered tools that can enhance business operations across various industries.

Each level of AI provides different capabilities. Core AI applies intelligence to machines, machine learning enhances decision-making with large datasets, and generative AI (genAI) enables content creation without predefined input parameters. The value of AI for operators depends on selecting the right approach and technology for each specific use case.

These AI-driven initiatives span various industries, including finance, agriculture, tourism, and public services. Below are examples of operator-led AI solutions:

China Mobile

China Mobile is focused on integrating AI into the financial industry’s production and operational processes to optimize efficiency and reduce costs. The operator is collaborating with financial regulators and institutions to implement national strategies aimed at accelerating digital finance adoption. This initiative strengthens China Mobile’s role in AI-driven financial solutions and enhances its competitiveness in the sector.

Indosat Ooredoo Hutchison

Indosat Ooredoo Hutchison has partnered with India-based AI and data analytics company AIonOS to develop AI applications tailored for the Indonesian market. The collaboration emphasizes AI solutions in smart agriculture, AI talent development, and tourism, supporting the country’s digital transformation efforts.

LG Uplus

LG Uplus plans to invest up to KRW3 trillion ($2.1 billion) to position itself as a leader in AI transformation. Under its ‘All in AI’ enterprise services strategy, the company aims to generate KRW2 trillion ($1.4 billion) in annual revenues by 2028. The operator seeks strategic partnerships with technology giants to bolster its AI capabilities and expand its enterprise AI solutions.

Orange

Orange Business introduced a multi-LLM (Large Language Model) solution called Live Intelligence. This plug-and-play AI service facilitates enterprise and government adoption of AI technologies by simplifying implementation. Initially launched in France, the service will expand across Europe, reinforcing Orange’s role in AI-driven digital transformation.

Rakuten Mobile

Rakuten Mobile has introduced a generative AI (genAI) service for enterprises in Japan to support digital transformation with cost-effective and accurate AI models. A Rakuten Group survey revealed that only one in six small and medium-sized enterprises (SMEs) in Japan currently use AI, with 40 percent unaware of its benefits. The operator aims to extend this AI service to its 18,000 enterprise clients and Rakuten Group’s broader corporate customer base of 630,000 companies.

Singtel

In October 2024, Singtel launched its AI cloud service in partnership with Silicon Valley-based Scale AI. This initiative enables enterprises to deploy and scale generative AI applications efficiently. By integrating cutting-edge AI infrastructure, Singtel is positioning itself as a key enabler of enterprise AI solutions in Asia.

Swisscom

Swisscom has developed the Swiss AI Platform to provide AI infrastructure and applications for local enterprises. This initiative has seen significant demand from the financial and public sectors. Notable applications include an AI-powered chatbot for bank employees to query internal instructions and an automated transcription system for emergency calls, demonstrating AI’s potential in critical operations.

Telefonica

Telefonica Tech has introduced the Telefonica Tech GenAI Platform, designed to help organizations build customizable virtual assistants. These AI-driven assistants can resolve complex queries, automate repetitive tasks, and optimize internal processes, offering enterprises an intuitive and powerful AI solution.

Verizon

Verizon has unveiled Verizon AI Connect, an integrated suite of AI solutions designed to help enterprises deploy AI workloads at scale. The platform provides businesses with the necessary AI tools to enhance efficiency, automate operations, and improve decision-making capabilities.

As AI adoption continues to rise, operators are poised to play a crucial role in enabling enterprise AI transformation globally.

Baburajan Kizhakedath

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