Comviva, a mobility solutions provider, has said that the telecom sector is approaching Generative AI (GenAI) with a mix of enthusiasm and caution.
While telecoms companies have traditionally focused on large-scale networks and hardware, they are now faced with the challenge of embracing software that can create, innovate, and adapt, according to Comviva.
This shift is prompting a significant reevaluation of how telecoms companies operate, with many beginning to understand the potential of GenAI to reshape the future of the industry.
Telcos ‘facing skills gaps in GenAI’
However, one of the key challenges telecoms companies face is a skills gap. Comviva’s research reveals that 42% of telecoms companies are struggling with a lack of in-house expertise in AI, a higher figure than the 35% average across industries. This shortage is a significant barrier to GenAI adoption, with companies needing to upskill their workforce or seek partnerships to bridge the gap. Additionally, concerns about return on investment (ROI) are more pronounced in the telecom sector than in others, with 20% of companies expressing uncertainty about whether the benefits of GenAI will outweigh the costs.
While some companies are still in their initial stages of exploration, some are already well into the testing and deployment of GenAI applications across the board. Comviva’s recent research, “From Now to Next – Crafting the Future of Marketing with GenAI,” states:
- “29% of companies are in the initial exploration phase, assessing the potential of GenAI.
- 30% are developing strategic plans for GenAI implementation.
- 15%are assessing vendors and technology solutions to secure the right partnerships.
- 17% have progressed to pilot testing, gaining hands-on experience with GenAI applications.
- 9% have moved to full-scale deployment, setting benchmarks for the industry.”
“Vodafone is one of the telcos harnessing generative AI for analyzing anonymized transcripts of customer calls to create more accurate and insightful summaries of these interactions, thereby improving the personalisation of content and services offered to customers. This speaks to a burgeoning reality where each customer interaction is tailored by deep learning insights, making generic experiences a relic of the past,” according to the authors of the Comviva report.
However, one of the key challenges telecoms companies face is a skills gap. Comviva’s research reveals that 42% of telecoms companies are struggling with a lack of in-house expertise in AI, a higher figure than the 35% average across industries. This shortage is a significant barrier to GenAI adoption, with companies needing to upskill their workforce or seek partnerships to bridge the gap. Additionally, concerns about return on investment (ROI) are more pronounced in the telecom sector than in others, with 20% of companies expressing uncertainty about whether the benefits of GenAI will outweigh the costs.
Another major concern is data security. Since telecoms companies handle vast amounts of sensitive customer data, safeguarding this information is a top priority. Comviva’s research reveals that, about 35% of companies see this as a big issue, and “robust data governance frameworks and advanced security measures are essential.” Moreover, some companies are still unsure how to effectively apply GenAI to achieve tangible business outcomes, a ‘conundrum’ that 28% of telecoms firms are grappling with.
Despite these challenges, there are ways telecoms companies can harness GenAI to their advantage. Comviva suggests that companies start by addressing the expertise gap, either by upskilling their employees or attracting new AI talent. Small-scale projects, such as personalising customer interactions or optimizing network performance, can provide quick wins and demonstrate the value of GenAI without requiring a full-scale transformation. Enhancing data management practices is also critical, as this not only protects customer data but builds trust, which is essential for long-term success in the telecom industry.
Telecoms companies must also look for new ways to apply GenAI, testing solutions like intelligent customer service chatbots and predictive network analytics.
According to the mobility solutions provider, collaborating with technology partners could accelerate this process and allow companies to innovate more quickly.
“The telecoms industry’s cautious approach to GenAI isn’t a sign of reluctance – it’s a testament to their commitment to getting it right,” Comviva says. “However, to truly harness the power of GenAI, telecoms companies need to step up their game. It’s time to move from cautious observation to bold action.”
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