How the Telco Industry is Leading the Way in Generative AI Adoption

In the ever-evolving tech landscape, Generative AI in telecom is gaining momentum, with the telecommunications industry emerging as a leader in adoption. This research, conducted by Coleman Parkes Research Ltd. and commissioned by SAS, highlights the forward-thinking approach telcos are taking in integrating GenAI into their operations. 

The study surveyed 1,600 decision-makers across various industries, including in the UK & Ireland, to understand how businesses are investing in GenAI and overcoming challenges related to the technology. 

Telco Leading the Charge in Generative AI (GenAI) Adoption 

One of the standout findings from the study is that 70% of telcos are already using GenAI, either fully implemented or undergoing tests across various departments such as marketing, sales, and IT. Additionally, 29% are in the process of deploying GenAI across their organizations. These numbers of position telcos ahead of other sectors, with only an average of 54% of businesses in other industries implementing GenAI. 

Following telcos, the retail industry is also making strides with 66% adoption, while the banking and insurance sectors are seeing 60% implementation rates. 

Why is GenAI Important for Telcos? 

Generative AI holds immense potential for the telco industry. From personalizing customer interactions to improving predictive analytics. These capabilities allow telcos to engage with customers more effectively and make better, data-driven decisions.  It strengthens their competitive edge. 

“By leveraging GenAI, telcos see opportunities to enhance customer engagement through personalized interactions, improve predictive analytics for more informed decision-making, and strengthen their competitive positioning in a rapidly evolving market.” emphasized Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe. 

Investment in GenAI Continues to Rise 

The study also shows that telcos are set to invest heavily in GenAI, with 89% planning to increase their investment in the next financial year. This puts the telco industry on par with the insurance sector in terms of upcoming GenAI investments. 

Challenges in GenAI Adoption 

Despite its potential, the adoption of GenAI doesn’t come without concerns. Telcos, like other industries, are worried about data privacy (83%) and data security (80%). Ethical implications (60%) and the availability of in-house talent and skills (54%) also remain significant barriers. 

These challenges mirror those found in sectors like banking, where similar concerns over data privacy and security exist. 

Best Practices for GenAI Deployment 

To navigate these challenges and maximize GenAI’s benefits, the SAS report outlines four key steps for businesses looking to successfully deploy GenAI: 

1. Strategic Deployment – A clear plan for how GenAI fits into long-term goals. 
2. Comprehensive Governance – Ensuring the right frameworks are in place to manage risks. 
3. Technological Integration – Seamless integration into existing systems. 
4. Expert Guidance – Relying on skilled professionals to guide the process. 

By following these steps, telcos can unlock the full potential of GenAI, positioning themselves as leaders in the digital transformation journey. 

Looking Ahead 

As telcos continue to explore the possibilities of GenAI, it’s clear they are at the forefront of this technological revolution. With a strong commitment to innovation and a willingness to address challenges head-on, the telco industry is setting the stage for a future where AI-driven solutions enhance operations, improve customer experiences, and drive business growth.