Traditional AI and genAI are also powerful enablers of telecommunications companies (telcos) transitioning into technology companies (techcos) – agile, technology-centric digital service providers that go beyond connectivity to offer advanced, customizable digital solutions. Supported by engineering and technology insourcing, techcos can industrialize and scale new digital business models. This shift requires rethinking the business and operating model and technology stack. Telcos making this transition report up to 31% revenue diversification,16 showcasing the potential of this strategic evolution. AI is pivotal in this transition, empowering telcos to predict and respond to user needs dynamically and precisely. For example, B2B clients can configure a suite of digital services like chatbots or security solutions, with AI algorithms analysing usage patterns and past data to recommend the optimal service mix. For B2C consumers, genAI ensures seamless experiences by optimizing network services such as 5G quality of service (QoS) speed and latency for streaming or interactive applications. This real-time customization enhances satisfaction and unlocks new revenue streams, cementing the techcos’ role as a proactive, versatile digital service provider. CSPs are also unlocking growth by offering internally developed AI-as-a-service (AIaaS) models for small- and medium-sized businesses (SMBs) and mid-market customers. For example, by packaging their AI capabilities into accessible solutions, CSPs provide tools for automating customer service or enabling sales strategies. This empowers resource-constrained SMBs to adopt advanced technologies cost-effectively, demonstrating how AI can drive growth across the entire spectrum of telecommunication customers. Differentiate customer experience Despite widespread commoditization, only 34% of telecommunications customers feel satisfied with their service, and 70% are frustrated by a lack of consistent experience across channels. Only one in three customers stay with their service provider for over five years.17 A total of 48% of CSP , hardware and software industry AI professionals identify customer experience improvements as a primary goal of AI implementation, helping them differentiate their services and halt revenue decline.18 Traditional AI is already enhancing customer interactions by analysing user data and recommending “next best actions”, such as matching customers with suitable offerings, guiding call centre agents or deploying simple language chatbots. However, genAI is transforming these capabilities with advanced conversational tools, such as natural language chatbots and AI-powered retail assistants, to improve customer experience. of telecommunications customers are frustrated by a lack of consistent experience across channels.70% Artificial Intelligence in Telecommunications 8

Artificial Intelligence in Telecommunications 2025