Is GenAI the right tool for telecom transformation?

genAI for telecomTelecoms operators must  focus on a broad spectrum of AI technologies and avoid over-reliance on Generative AI (GenAI), according to Analysys Mason.

Analysys Mason categorizes AI into two primary groups: GenAI, which generates content like text and images, and non-GenAI technologies, including predictive and prescriptive systems that analyze data and deliver actionable insights.

While GenAI tools, such as OpenAI’s ChatGPT, have garnered significant attention for their ability to generate text, images, and videos, the firm emphasizes that non-GenAI solutions like predictive analytics, recommendation engines, and computer vision remain critical for operational efficiency and customer experience.

Despite the excitement surrounding GenAI, its applications remain limited and require a realistic understanding of their capabilities, said Adaora Okeleke of Analysys Mason. Operators should clearly define their use-case requirements and match them with the appropriate AI toolsets. Combining the strengths of GenAI with non-GenAI—such as using GenAI for natural language queries to access predictive insights—offers a more comprehensive AI strategy.

Achieving balanced investments across all AI categories can maximize technological potential and drive meaningful transformation in telecoms, the report said.

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