AI refers to technologies that emulate human intelligence and assist decision-making with self-learning capabilities. Machine learning (ML) is a sub-field of AI that focuses on imitating how humans learn and includes the development and use of algorithms that can learn and adapt without following explicit instructions.
Telcos have emerged as essential channel partners for procuring AI technology. Their ability to work closely with enterprises to build solutions, offer professional and managed services, and integrate AI-based tools and platforms make them crucial ecosystem participants.
All major telcos have started implementing AI technology; however, they are at different stages of maturity—from proofs of concept to deploying multiple AI use cases in scale. A clear strategy and roadmap articulation are critical in AI adoption. Few telcos have architectures that support integrated enterprise data pools, including data gathered from real-time sources, indicating low data readiness to support AI applications. This results in difficulty training AI models for GenAI applications and ineffective AI outcomes.
This report highlights emerging AI use cases across telcos and horizontal business functions, drivers, and restraints impacting the AI market. It also offers telcos opportunities to explore industry-specific AI solutions and data management.
Frost & Sullivan conducted detailed primary interviews with telcos that stand out in different regions to generate a competitive profile and understand relevant AI developments, strategies, and value propositions. In addition, we performed extensive secondary research across our internal database and other public information sources, such as financial reports, industry associations, statistic agencies, and specialized websites.
Author: Renato Pasquini
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on AI’s Applications for Telecommunications Service Providers (Telcos)
Scope of Analysis
Research Process and Methodology
Key Competitors
Growth Drivers
Growth Restraints
AI Adoption in Telcos’ Segments of the AI Market: Distinct yet Interrelated
AI Adoption in Telcos: Enterprise Decision-making Evolution with AI-based Models
AI Adoption in Telcos: Utilization and Impact
AI Adoption in Telcos: Investment
Applying AI to Generate New Revenue Streams: Telcos Shift from Connectivity to Data Services
Applying AI to Generate New Revenue Streams: Telcos’ New Business Models
Applying AI to Generate New Revenue Streams: GenAI and Edge AI
Applying AI to Generate New Revenue Streams: Use Cases in the Business-to-Business (B2B) Segment
Applying AI to Generate New Revenue Streams: New B2B Portfolio for Telcos
Applying AI to Generate New Revenue Streams: Key AI Vertical Use Cases for Telcos
Applying AI to Generate New Revenue Streams: Key AI Vertical Use Cases for Telcos (continued)
Applying AI to Generate New Revenue Streams: Network Operations Management for Telcos
Applying AI to Generate New Revenue Streams: Customer Experience Management for Telcos
Comparison of Top AI Initiatives
Comparison of Top AI Initiatives (continued)
Comparison of Top AI Initiatives (continued)
Comparison of Top AI Initiatives (continued)
SK Telecom: Key AI Developments
SK Telecom: Global AI Company’s Positioning Since 2022
KT Corporation: Key AI Focus Areas
KT Corporation: AICT Company’s Positioning Since 2024
Telefónica: Building Blocks for a Cognitive Platform
Telefónica: Key AI Focus Areas
Telefónica: AI Adoption Program That Launched in 2024
Vodafone: Key AI Developments
Vodafone: Multivendor AI Architecture That Released in 2024
Verizon: Key AI Focus Areas
Verizon: AI Strategy That Released in 2024
AT&T: Key AI Developments
AT&T: Key AI Focus Areas
Growth Opportunity 1: AI Professional Services
Growth Opportunity 1: AI Professional Services (continued)
Growth Opportunity 2: AI Industry Vertical Solutions
Growth Opportunity 2: AI Industry Vertical Solutions (continued)
Growth Opportunity 3: Conversational Platforms
Growth Opportunity 3: Conversational Platforms (continued)
Growth Opportunity 4: Autonomous Networks
Growth Opportunity 4: Autonomous Networks (continued)
Benefits and Impacts of Growth Opportunities
Action Items & Next Steps
List of Exhibits
Legal Disclaimer
List of Figures- AI in Telecommunications: Growth Drivers, Global, 2025–2030
- AI in Telecommunications: Growth Restraints, Global, 2025–2030
- AI in Telecommunications: AI Life Cycle Segments, Global, 2024
- AI in Telecommunications: Decision-making Evolution with AI-based Models, Global, 2024
- AI in Telecommunications: AI Utilization Level, Global, 2024
- AI in Telecommunications: AI Impact in Business Areas, Global, 2024
- AI in Telecommunications: AI Investment, Global, 2024
- AI in Telecommunications: Telco Digital Transformation, Global, 2024
- AI in Telecommunications: Telcos’ Unique Positioning to Monetize AI Opportunities, Global, 2024
- AI in Telecommunications: Multimodal AI Capabilities, Global, 2024
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| Deliverable Type | Market Research |
|---|---|
| Author | Renato Pasquini |
| Industries | Telecom |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | telecom AI market |
| Keyword 2 | telecom automation |
| Keyword 3 | AI-driven telecom services |
| List of Charts and Figures | AI in Telecommunications: Growth Drivers, Global, 2025–2030~ AI in Telecommunications: Growth Restraints, Global, 2025–2030~ AI in Telecommunications: AI Life Cycle Segments, Global, 2024~ AI in Telecommunications: Decision-making Evolution with AI-based Models, Global, 2024~ AI in Telecommunications: AI Utilization Level, Global, 2024~ AI in Telecommunications: AI Impact in Business Areas, Global, 2024~ AI in Telecommunications: AI Investment, Global, 2024~ AI in Telecommunications: Telco Digital Transformation, Global, 2024~ AI in Telecommunications: Telcos’ Unique Positioning to Monetize AI Opportunities, Global, 2024~ AI in Telecommunications: Multimodal AI Capabilities, Global, 2024~ |
| Podcast | No |
| Predecessor | PE89-01-00-00-00 |
| WIP Number | KB33-01-00-00-00 |
Growth Opportunities for Telecommunications Service Providers in Artificial Intelligence, 2024
AI-powered Innovation Unlocks New Revenue Streams, Operational Efficiency, and Customer Value
18-Dec-2024
Global
Market Research