Sales and marketing Value: drive business growth, differentiate customer experience Marketeers strive to reach the right person with the right message at the right time, but limitations around content creation and the diversification of digital channels have, so far, made this impossible. GenAI addresses these challenges by providing the required channel and content sophistication. While traditional AI-driven digital advertising solutions already perform advanced customer segmentation in B2C channels, combining traditional AI and genAI allows for hyper- personalized content and customer journeys. These tools refine customer segmentation at a low cost, tailoring messages to individual needs and maximizing the impact of every interaction. Traditional AI and genAI enhance B2B lead enrichment by analysing prospect attributes to prioritize leads and recommend the most suitable solutions or services, improving efficiency across B2B sales teams. In direct sales, genAI assistants can support sales agents with insights via personalized sales scripts and intelligent recommendations on the products and pricing to better engage the customer. These use cases rely on historic customer data, which can perpetuate biases or prejudices across sales actions or recommendations. To mitigate this, businesses must introduce close data monitoring, extensive testing and guardrails to protect consumers. Driving sales with Telefonica’s Next Best Action AI Brain BOX 1 Telefonica’s Next Best Action AI Brain uses an in-house Kernel platform to revolutionize customer interactions with precise, contextually relevant recommendations. It analyses both contextual and non-contextual customer data, integrating behavioural patterns and preferences to anticipate needs. This allows for hyper-personalization of product, service or action offers, boosting conversions and customer satisfaction. Initial implementations have shown sales increases of nearly 20% and conversion rates of around 30%. The result is an enhanced customer experience, increased loyalty, and superior ROI in commercial and marketing efforts. Product and services Value: drive business growth, differentiate customer experience The shift from telco to techco hinges on the ability to expand a service offering beyond connectivity to offer personalized portfolios and configure network QoS to meet expectations. For connectivity-based services, real-time service configuration powered by genAI can dynamically adjust network settings or service configurations to enhance the customer experience through a unified central interface. For example, it can adjust bandwidth allocations in real time to meet specific needs, such as streaming or gaming services. Traditional and generative AI can help SMB and enterprise clients curate customized service packages aligned with their business goals, adapting these offerings to the company’s evolving needs.AI can support precise predictive customer segmentation models, enabling real- time customer management and product development based on complex data sources. Once segmentation personas are identified, AI can refine pricing decisions through elasticity models and propose need-based service bundles. These outcomes must be tested to reduce bias and discrimination. As CSPs build their own AI assets and capabilities, they can also capitalize on existing trusted customer relationships and the convenience of a unified bill to offer white-labelled versions of in-house AI services, such as chatbots or security solutions. These AI-enabled products and services can be bundled into a comprehensive offering alongside communications products where appropriate. Within B2B, extensive opportunities exist for CSPs to provide AI-related offerings across infrastructure, AI capabilities and end-industry solutions. These are detailed in Section 2.2. AI can support precise predictive customer segmentation models, enabling real-time customer management and product development. 12 Artificial Intelligence in Telecommunications

Artificial Intelligence in Telecommunications 2025