No longer limited to providing basic phone and internet service, the telecom industry is at the epicenter of pushing the wide adoption of cutting edge technologies, led by mobile and 5G broadband services in the Internet of Things (IoT) era. This growth is expected to continue due to the rapid adoption of AI in telecommunications to support networks and customers at scale. Valuates projects that the global AI In telecommunication market size will reach $14.99B by 2027, from $11.89B in 2020, at a CAGR of 42.6% during 2021-2027.

What is driving the widespread adoption of AI by telecoms? AI has proven itself essential to the telecoms’ digital transformation strategy as it addresses the key challenges telecoms face today.

The Challenges that AI in Telecommunications Can Address in 2023

Poor Network Management
Global traffic and the need for more network equipment are growing dramatically, resulting in more complex and costly network management.

Lack of Data Analysis
Telecoms struggle to leverage the vast amounts of data collected from their massive customer bases over the years. Data may be fragmented or stored across different systems, unstructured and uncategorized, or simply incomplete and not very useful.

High Costs
Following massive investments in infrastructure and digitalization, industry analysts expect telecoms’ global operating expenditures to increase by billions of dollars. Many telecoms face a financial crunch and must find ways to improve their bottom lines.

Crowded Marketplace
Telecom customers are demanding higher quality services and better customer experience (CX) and are known to be especially susceptible to churn when their needs are not met.