By: Miguel Carames
In today’s rapidly evolving telecom industry, Communications Service Providers (CSPs) face a growing challenge: delivering innovative services at scale, containing rising operational costs, and
meeting soaring customer expectations - all the time.
Artificial Intelligence (AI), automation, and analytics offer a clear path forward. Beyond operational improvements, these technologies give CSPs a chance to reimagine their role in the digital
value chain — not just as service providers, but as AI-native organizations that embed intelligence into the heart of their networks and decision-making.
This transformation is not just about technology; it’s also strategic. As telecoms evolve into digital-first enterprises, the ability to act on insights in real-time becomes a key differentiator.
Operators that utilize AI to make faster decisions, streamline operations, and tailor services to meet customer needs will be better equipped to handle market shifts, new regulations, and
disruptive innovations.
McKinsey estimates that Generative AI (GenAI) alone could unlock $60–100 billion in revenue and productivity gains globally across the telecom sector. Long term, that figure is estimated to
rise to $250 billion. Yet, practical adoption remains slow. A GSMA Intelligence report found that 22 percent of telcos
currently allocate less than 5 percent of their digital budgets to AI; just 4 percent dedicate more than 25 percent.
Several factors are slowing adoption: legacy infrastructure, fragmented data systems, internal resistance to change, and a lack of in-house AI expertise. Overcoming these challenges requires more
than just new tools; it also requires a new mindset. Operators need to prioritize governance and transparency in how AI is applied, as well as strong collaboration across teams — all essential
for building the trust and structure needed to scale AI safely and effectively.
So, where should CSPs start and how can they scale AI with impact? Below is a five-step roadmap to move from fragmented efforts to an intelligence-first model that’s built for growth, agility,
and resilience.
Step 1: Break Down Silos — Make AI Work Across the Business
AI delivers the most value when it operates across departments - not in isolated use cases. Many operators start by applying AI to improve customer experience, but that only scratches the
surface. A dropped call isn’t just a customer care problem - it might signal a deeper set of potential root causes, potentially negatively impacting other customers as well. Unless AI spans the
full value chain, from infrastructure to support, its impact will remain narrow.
Consider fraud detection. Unusual usage may first appear in billing, but without network or CRM visibility, early signs are often missed. When AI has access to integrated data – ranging from logs
to subscriber profiles - it can detect, correlate, and act in ways no siloed team could.
Unified AI systems can not only uncover fraud but also automate actions like rerouting traffic or sending alerts—all in real-time. This cross-functional intelligence becomes essential as CSPs
pursue business models like Network-as-a-Service (NaaS), edge computing, or global IoT platforms. In these environments, AI isn’t an add-on - it’s the orchestration engine that ensures speed and
reliability.
Embedding AI across your operations isn’t just a nice-to-have. It’s what separates legacy networks from modern adaptive, autonomous, future-ready infrastructure.
Step 2: Use Real-Time Analytics to Stay Ahead of Threats and Service Gaps
The shift from static dashboards to real-time, closed-loop analytics marks a turning point in telecom operations. For CSPs, it’s no longer enough to analyze yesterday’s data. They need systems
that ingest and act on insights as events unfold in near real-time.
This is especially true for fraud prevention. Traditional rule-based systems fall short in a world where threats constantly evolve. AI-powered analytics can identify anomalies on the fly -
whether it’s SIM card cloning, subscription fraud, or even identity theft - and stop them before they escalate.
Service assurance also benefits from advanced AI capabilities. AI can predict congestion, detect minimal performance degradation, and proactively allocate resources to help identify anomalies
before customers feel the impact. It’s not just about maintaining SLAs - it’s about anticipating and resolving issues without customer intervention.
In roaming, AI helps operators detect revenue leakage, spot irregularities, and optimize traffic flows. Combined, these capabilities lead to a network that is not only responsive but also
adaptive, able to evolve with changing customer behavior and growing service demands.
Step 3: Strengthen Cyber Resilience with GenAI-Driven Security Modeling
As telecom networks grow more distributed and complex, thanks to 5G, IoT, and cloud-native architectures, their vulnerability to cyber threats also increases in kind. Moody’s Ratings recently placed the telecom sector in the
‘very high risk’ category on its cyber