Navigating AI's Impact on Telecom Industry: Prospects and Obstacles
AI's potential in the telecom industry is staggering, handling operational efficiencies, network management, and improving customer interactions. However, the hype surrounding AI features often falls short, with telecom software vendors offering little value. Yet, the transformative power of AI isn't lost on carriers—they just need to tap into it wisely.
Trust issues, compliant regulations, and strategic capability gaps are the primary concerns slowing down AI deployment in the telecom sector.Data protection, data management, transparency, and human oversight are the critical components the industry must address.
Balancing security, data protection, and transparency is a tricky task. Telecoms must keep sensitive customer information safe while providing insight into their AI systems and data usage. To achieve this, AI models focusing on data protection and compliance are essential. The shift towards hybrid cloud strategies and targeted AI models trained on specific internal datasets will help minimize risks related to data leakage and compliance issues.
The Business Support System (BSS) behind telecom operations must adapt to the sophistication offered by AI. Focusing on AI solutions delivering tangible returns on investment (ROI) and solving specific business problems becomes crucial for widespread AI adoption.
Human oversight must be pragmatic to avoid hindering AI's benefits. Allowing AI systems to operate autonomously within predefined safety and ethical boundaries is ideal.
Industry collaboration will help lower barriers to market in AI implementation. Efforts like the UKTIN's AI Expert Working Group are fostering cooperation among industry experts, helping establish common standards, best practices, and strategic opportunities for AI adoption in telecoms.
To unlock AI's full potential, further regulation is needed to build trust among service providers with clear, pragmatic guidelines. By fostering a regulatory environment that balances innovation with oversight, the telecom sector can confidently adopt AI. The focus should remain on AI solutions delivering tangible business outcomes and driving innovation, paving the way for a more efficient and customer-centric future in telecommunications.
Article by Liz Parry, the CCO at Lifecycle Software
Note: The European Union's AI Act entered into force on 1 August 2024, with various obligations applying on a rolling basis. Beginning from 2 February 2025, requirements related to AI literacy and prohibitions on specific AI practices take effect. Obligations for General-Purpose AI (GPAI) models apply from 2 August 2025, while obligations for high-risk AI systems (that may include certain telecom applications) are scheduled from 2 August 2026 and 2 August 2027.
- The telecom industry, with its ambitious AI projects focused on finance, technology, and customer interactions, can benefit significantly from regulations that enhance trust, like the European Union's AI Act.
- To maximize the returns on AI investments in the telecom sector, it's crucial to prioritize collaboration within the industry, leveraging groups such as the UKTIN's AI Expert Working Group, for the development of standardized practices and identification of strategic opportunities in artificial-intelligence deployment.
