Communication service providers (CSPs) are working to maintain profit in a market where revenue and subscriber growth is stagnant that is due in part to competition from web companies cutting into their business. A new report from Tractica, titled “Artificial Intelligence for Telecommunications Applications,” details how telecommunications companies are looking to AI technologies to expand and ensure their business stays competitive in a rapidly changing industry.
The report forecasts that CSPs will spend $11.2 billion a year by 2025 on AI technology solutions that improve customer experience management, customer relationship management, service delivery, and virtual assistants for marketing. By doing so, companies pursue digital service solutions that are similar to those of successful web companies.
Currently, there are multiple telecom AI use cases such as predictive maintenance, fraud mitigation, cybersecurity, and network operations and management. The report breaks down the telecom AI market by region and use case, showing how companies will advance in various markets around the world based on their customer’s needs.
“5G and Internet of Things (IoT) and digital transformation are initiatives that CSPs hope will drive topline growth. While they pursue these efforts, CSPs are under equal pressure to find ways to become more efficient and cut costs as a means to increase profitability,” says principal analyst Mark Beccue. “Telecom operators have begun to experiment and deploy AI-driven solutions that leverage fast, scalable interpretation, analytics, and prediction to generate revenue or reduce costs”.
