Telcos Look to Artificial Intelligence to Power Digital Transformation

By: Kelley Katsanos| - Leave a comment


A recent Infosys survey shows 87 percent of enterprises in the telecommunications sector are adopting artificial intelligence (AI) as they carry out their digital transformations. Telcos intend to use this technology to help cut cost through automation.

Moving Toward AI

According to the “Telecom and Communication” report in Infosys’s “Human Amplification in the Enterprise” study, 86 percent of telcos plan to utilize machine learning in their digital transformation efforts, while 80 percent intend to build AI-based applications to improve and amplify products and services. Respondents also want to use the technology for automated decision-making (71 percent) and chatbots (66 percent). Automated predictive analytics comes in strong, too, with 62 percent of respondents planning to use AI for that purpose.

The Infosys report found the top motivators behind AI-based technology in the telecom space were increasing productivity, reducing costs and lessening manual errors.

“Telecom is clearly into intelligent automation,” the report notes. “Telefonica O2, an early adopter of AI, earned a 650 to 800 percent return on investment over three years from its 160 robots, which processed about 400,000 to 500,000 transactions each month. What’s more, robotic process automation (RPA) crashed some process times down to a few minutes from days and dramatically reduced the number of service inquiries from customers.”

Outlook for Artificial Intelligence

Over the next year, telcos anticipate AI to provide a variety of offerings. For instance, 71 percent of respondents intend to use the technology to support automated customer services by providing humanlike recommendations. Another 56 percent want it to process complex unstructured and structured data that can automate insight-led decisions. Furthermore, 49 percent plan to utilize AI to promote a simulated experience to enable improved decision-making.

However, the study also indicates digital transformation efforts involving AI initiatives may pose challenges such as time constraints and organizational resistance to change. Both of these areas were concerns for 72 percent of telco professionals. Additionally, 75 percent were also concerned about the lack of a defined value proposition for AI, and 71 percent said financial constraints were a roadblock.

Yet as the Infosys study suggests, AI has the potential to amplify business outcomes by enabling organizations to become more efficient and productive. These abilities can help free up time for new activities and processes that will foster further innovation down the road.

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About The Author

Kelley Katsanos

News Writer

Kelley Katsanos is a freelance writer specializing in business and technology. She has previously worked in business roles involving marketing analysis and competitive intelligence. Her freelance work appears at IBM Midsize Insider, Houston Chronicle's, and AZ Central Small Business. Katsanos earned a Master of Science in Information Management from Arizona State University as well as a bachelor's degree in Business with an emphasis in marketing. Her interests include information security, marketing strategy, and business process improvement.