Executive summary This white paper explores artificial intelligence’s (AI) transformative potential in the telecommunications industry, addressing sector-specific opportunities and challenges. It provides actionable insights to help industry leaders navigate this period of change. The sector faces a challenging landscape, with service commoditization leading to global revenue stagnation, a lack of core service differentiation and a requirement to diversify to drive growth. Technological advancements require that communication service providers (CSPs) manage complex multi-vendor network architectures and defend against sophisticated, AI-powered cybersecurity threats. The resulting operational complexity has already surpassed what traditional, manual processes can support. As the industry reaches an inflection point, AI will play a critical role in its reinvention. Following extensive experience with traditional AI and a period of experimentation with genAI, there is an industry- wide focus on scaling use cases to achieve four key imperatives: –A new model of telecommunications is emerging, whereby AI-enabled automation of network management and technology is reducing cost-to-serve. Worker efficiencies will be improved through the democratization of data and knowledge sharing tools. –GenAI capabilities are enabling sales and marketing personalization to drive business growth, with opportunities to diversify revenue streams through AI infrastructure provision and AI-as-a-service (AIaaS) offerings. –Natural language capabilities are transforming customer service, unlocking innovations in digital service, including AI-powered retail assistants and natural language chatbots. A clear pathway is emerging towards a new unassisted, proactive and cross-channel service model in the future. –In response to a growing cybersecurity threat, CSPs are using AI to ensure secure and reliable operations by automatically identifying and patching vulnerabilities, detecting and responding to incidents and preventing fraud. To realize this potential and prevent isolated implementations, CSPs require a cohesive strategy for enterprise-wide transformation, including a clear value-based prioritization model, appropriate data foundations and technical architecture, workforce capabilities and responsible AI principles. Continued re-evaluation of these transformation pillars will be essential as AI continues to evolve. Collaboration opportunities will be crucial for CSPs, including partnerships within the industry itself, with technology infrastructure providers, application developers, those driving enterprise-wide transformations, and with the public sector through public-private partnerships (PPPs). AI is an essential enabler within telecommunications, with the potential to drive efficiency, improve customer experience and deliver against emerging growth opportunities while remaining secure in the face of growing cybersecurity threats. To maximize the benefit, CSPs need to develop an end-to-end strategy across the organization, including data and technology architecture, organizational model and partnerships with a clear value calculation to drive decision-making.AI is poised to transform the telecommunications sector, unlocking business opportunities, enhancing operational efficiency and delivering a truly customer-centric experience. Artificial Intelligence in Telecommunications 5

Artificial Intelligence in Telecommunications 2025