AI is poised to reshape the telecom industry. With the technology’s potential to streamline network operations, deliver better value to customers and unleash innovation, communications service providers (CSPs) that strategically leverage AI in its infancy can come out on top. So how can they?
In a recent Tech Talk with CSG webinar, four expert panelists from the telecom and technology sectors shared their insights and detailed best practices to implement AI in ways that promote growth and innovation. With CSG’s Letchu Narayanan moderating the discussion, the speakers included:
- Patrick Kelly, founder, partner & principal analyst, Appledore Research
- Chris Featherstone, principal data & generative AI/ML telco CX GTM lead, AWS
- Bindu Subhadramma, executive director, BSS core engineering and platform management, Optus
- Gary Manuel Y Kho, FVP for enterprise architecture, PLDT
Let’s unpack the panel’s four key takeaways for telcos looking to best use AI in their organizations.
AI IS NOT A SILVER BULLET—BUT IT CAN BE TRAINED
AI is not a magic solution that can solve all the challenges faced by telcos, but rather a strategic enabler that can be shaped and molded to enhance their capabilities and performance. Panelists stressed that large language models (LLMs) require heavy training with a high volume of data to reach the maturity level required to reliably respond to customers and bring them solutions. Otherwise, they run the risk of ambiguous inputs producing AI hallucinations or implicit biases that turn off customers.
Even as the AI is being trained, telcos can apply it to practical use cases, such as incident identification and prevention. But first, said AWS’ Chris Featherstone, people have to unwire their understanding of what a generative model can and cannot do. “Always map to the use cases that you’re trying to accomplish, then work backwards to what’s possible.”
AI is a tool that can augment human intelligence and decision-making, but it shouldn’t replace it. Telcos need to remain realistic and deploy AI in ways that will support current operations, not reinvent them.
AI CAN HELP TELCOS OPTIMIZE NETWORKS AND SUPPORT FUNCTIONS
Panelists identified network optimization and remediation as key areas where AI can make a difference for telcos. AI is adept at finding and communicating patterns, which can be transformed into actionable insights and automation. They recommended using AI to improve network performance by monitoring and analyzing traffic anomalies, identifying root causes, and predicting demand and capacity then automating actions and responses.
Bindu Subhadramma of Optus and the other panelists pointed out safe applications of AI for telcos, such as incident identification. Bringing AI into diagnosis, detection and remediation can both streamline network operations and create a better customer experience (CX).
TELCOS CAN USE AI TO TRANSFORM THEIR CX
In CX, AI can help bridge the gap between telcos and customers to increase customer lifetime value. One starting point is to lean on AI to enhance communication across the customer journey.
Specifically, telcos can mitigate friction by using generative AI models to reach out and assist customers at common pain points. Panelists pointed to bill confusion as a key opportunity area for telcos. From Appledore Research, Patrick Kelly noted that billing inquiries consume significant resources for many operators. He advised telcos to combat the problem by arming call center agents with AI to bring the customer clarity on unrecognized charges. “If you can serve up data that allows the call center agent to better understand and explain the bill, those are huge productivity gains in the industry,” Patrick affirmed.
In other words, telcos should seek out ways that AI might improve understanding between them and their customers to build a better CX.
STRIKE A BALANCE BETWEEN AI INNOVATION AND REGULATION
Panelists emphasized that AI is still in its infancy, and its benefits and risks are not yet clearly defined. There is no global approach to governance across AI, leaving an open horizon for potential legal changes. Telcos can best prepare for future regulations by building in space for flexibility. As regulators find the line between allowing innovation and protecting consumer data, telcos should stay on top of developments by performing regular policy checks and veering away from excessively rigid AI models.
Another way telcos can ready themselves for eventual legal guidelines is to prioritize secure AI practices now. PLDT’s Gary Manuel Y Kho and the other panelists cautioned CSPs to be mindful of sensitive data when using consumer-grade generative AI tools. They advised anonymizing data when using enterprise LLMS, and gravitating toward telco-specific LLMs, if possible.
HOW TELCOS CAN UNLEASH THE POWER OF AI
Telcos can harness AI to overcome the challenges and barriers along the path to digitalization. Optimizing network operations is only the beginning: telcos can innovate and differentiate their products and services, create value for customers and employees, and stop major incidents in their tracks with the help of AI.
Harness the Power of AI
For telco leaders who want to learn more pragmatic ways to leverage AI for growth and innovation, listen to the full Tech Talk with CSG webinar
