AI-Powered Experiences: The Key to Future
Growth and Relevance for Telcos
By: Richard Bassett
CEOs across industries are embracing AI and automation to gain a competitive edge. Following this year’s Mobile World Congress, this shift has never been more apparent in the telecommunications
industry.
In today’s fast-evolving landscape, the race to AI is no longer optional — it is the baseline requirement for telcos looking to stay relevant. AI and automation are not just tools for survival;
they are the key to delivering exceptional customer service and driving long-term success.
However, adopting AI and automation to drive a successful impact to the bottom line requires a strategic, platform-based approach. Telcos must focus on connecting disparate technology systems,
improving operational efficiency, gaining a 360-degree customer view, delivering personalization at scale, and ultimately creating seamless, effortless experiences across digital and voice
interactions.
Yet, as AI adoption accelerates, telcos face growing regulatory scrutiny and ethical concerns around data privacy and AI governance. Ensuring AI is implemented responsibly is paramount to
maintaining trust while maximizing its transformative potential.
Pitfalls of Generic AI for Telcos
Many organizations turn to generic AI solutions to tackle complex business challenges. For example, some law firms are testing chatbots trained on publicly available internet data for legal
research. However, these solutions are falling short. In a recent case, one UK law firm experienced issues including AI hallucinations — where the model fabricates citations — as well as
inaccurate and missing information following the use of generic AI
Telcos face similar risks. Deploying generic AI can degrade customer service, driving down Net Promoter Scores (NPS) instead of improving them. Customers may receive incorrect or irrelevant
responses from AI and human agents, forcing them to repeat themselves across multiple interactions, and multiple channels. Worse, rising bills and things like bill shock could leave vulnerable
customers without the urgent support they need at critical moments.
In contrast, purpose-built AI is designed with governance frameworks tailored to specific industries, regions, regulations, and domains — ensuring compliance, reliability, and effectiveness.
Trained on customer service-specific data, and telecom-specific local regulations, purpose-built AI can enhance customer interactions with tailored responses and predictive issue resolution. This
translates into real-world benefits such as improved support for vulnerable customers, faster resolution of customer issues, often without live agent escalation, and improvements to NPS.
Supporting Vulnerable Customers with AI
One of AI’s most impactful AI and automation applications in telco customer service is its ability to support vulnerable customers. A newly released 2025 Consumer Vulnerability Report reveals
that up to 35 million adults in the UK alone could be at risk — many without even realizing it. This challenge extends across the global telecom industry.
Even when customers self-identify as vulnerable, they often hesitate due to fear, embarrassment, or stigma. At the same time, frontline agents frequently lack the tools, confidence, and life
experience to respond effectively, leading to missed warning signs.
Purpose-built AI can change this by analyzing 100 percent of customer interactions in real-time, across both voice and digital channels. These AI-driven systems detect subtle signals of
vulnerability, such as financial distress, low financial confidence, or emotional strain, and provide agents with real-time guidance to deliver proactive and empathetic support. Automation can
then ensure compliance, by connecting events that include vulnerability to the right resources, teams, and processes, ensuring no customer or their need is overlooked. By shifting from reactive
to proactive customer
