09 October 2024

This year’s hot topic is seeing AI integrated into telecommunications left, right and centre to advance operative effectiveness, improve customer experience and cut costs. Samit Banerjee, division president, Amdocs cloud operations and customer services, advises operators to consider how, when and why, to ensure seamless and successful AI integration…

AI is profoundly reshaping telecommunications by leveraging technologies like machine learning (ML), automation, natural language processing, and predictive analytics. These advancements enable real-time data analysis for network optimisation, predictive maintenance, and proactive issue resolution, leading to improved efficiency, reliability, and reduced costs.

Generative AI (GenAI), a subset of AI, is further enhancing the sector by offering deep insights into customer behaviour, enabling highly personalised services that boost satisfaction and loyalty. GenAI-driven applications (such as chatbots) improve customer support with accurate, context-aware responses, while its predictive capabilities enhance network performance and targeted marketing. Overall, AI and GenAI are revolutionising telecommunications by optimising operations, enhancing customer experiences, and driving revenue growth through advanced data analysis and automation.

Despite its potential, implementing GenAI effectively requires high-quality data and skilled personnel, alongside addressing technical, legal, and governance challenges. Ensuring data quality, privacy, and robust governance are essential. And while GenAI technologies are advancing rapidly, many communication service providers (CSPs) are struggling to keep pace, as it is time and cost consuming to build their own GenAI platform.

Helping the operators

AI can play a significant role in helping mobile network operators (MNOs) address various day-to-day challenges.

When it comes to taking on the competition, AI can assist in analysing customer data, preferences, and behaviour patterns, enabling MNOs to offer personalised services, targeted promotions, and tailored pricing plans to retain customers and attract new ones. Moreover, predictive analytics can help identify potential customer churn risks and proactively take measures to address them, such as offering incentives or improving service quality.

Churn, a common challenge for MNOs the world over, can also be effectively addressed. Indeed, AI and machine learning models can analyse vast amounts of customer data, including usage patterns, complaints, and interactions with customer service, to identify potential churn indicators and predict customers at risk of switching providers. Based on these insights, MNOs can implement targeted retention strategies, such as personalised offers, improved customer service, or addressing specific pain points. Additionally, AI-powered chatbots and virtual assistants can provide personalised support and address customer queries more efficiently, improving overall customer satisfaction and reducing churn.

In combatting and fighting back against fraud, AI and machine learning algorithms can detect anomalies and patterns indicative of fraudulent activities, such as suspicious call patterns, unauthorised access attempts, or unusual data usage. Real-time fraud detection systems powered by AI can block or flag suspicious activities, preventing financial losses and protecting MNOs from various types of fraud, including subscription fraud, call fraud, and SIM box fraud.

Sustainability, an expanding topic of import for operators everywhere, can also be aided with AI. Energy optimisation techniques can help MNOs reduce energy consumption and carbon footprints by optimising network infrastructure, adjusting resource allocation based on demand, and identifying potential energy savings opportunities; while predictive maintenance powered by AI can detect potential equipment failures or degradation, enabling proactive maintenance and reducing the need for resource-intensive replacements or repairs.

By leveraging AI and its various applications, MNOs can gain valuable insights, optimise operations, enhance customer experiences, and improve overall efficiency, ultimately addressing network challenges more effectively.

Making money

With average revenue per user (ARPU) stalling for many mobile network operators, new ideas for monetisation are coming to the forefront – and telcos can leverage the power of AI to unlock new revenue streams.

One key area is personalisation, where AI can analyse vast amounts of customer data, including usage patterns, preferences, and behaviour to create highly tailored offerings and targeted marketing campaigns. By delivering services, pricing plans, and promotions tailored to individual customer needs, telcos can enhance customer satisfaction, increase revenue, and reduce churn.

“By leveraging AI and its various applications, MNOs can gain valuable insights, optimise operations, enhance customer experiences, and improve overall efficiency, ultimately addressing network challenges more effectively.”

One of the more impactful use cases is reducing average handle time (AHT) in call centres and repetitive calls. This can show immediate ROI from business and workforce perspective. Such use cases result in improved customer experience, decreased operations costs, latency enhancements, and accuracy improvements. Indeed, the path forward with monetising with AI around the care domains is analysing the interactions of customers with call centres and providing means to refrain the calls from coming to the call centre in advance.

AI-driven network optimisation can help telcos efficiently manage their infrastructure, allocate resources more effectively, and reduce operational costs. By leveraging AI for predictive maintenance, fault detection, and automated network management, telcos can minimise downtime, improve service quality, and optimise their overall operational efficiency, leading to cost savings and potential revenue growth. AI can also enable telcos to develop innovative services and business models, particularly in areas such as 5G and IoT. Companies are assisting telcos in monetising 5G and IoT use cases in sectors like logistics, healthcare, and connected devices. Here, AI can facilitate real-time monitoring, predictive analytics, and intelligent automation, enabling telcos to offer new value-added services to enterprises and consumers.

Overall, AI-powered agents, virtual assistants and predictive maintenance capabilities can significantly improve customer experience, leading to increased customer loyalty and reduced churn, contributing to revenue growth. With the advent of 5G and IoT, CSPs can leverage AI to offer intelligent edge computing and IoT services, processing and analysing data at the edge to provide real-time insights, predictive maintenance, and optimised services to enterprises. By embracing AI capabilities, CSPs can unlock new revenue streams through innovative services, personalised offerings, and data-driven business models, positioning themselves as key players in the digital economy.

Starting the journey

While the adoption of AI can bring significant benefits to MNOs, several factors may be holding back some operators from fully embracing this technology to improve their business strategies.

One significant barrier is the high initial investment required for AI infrastructure and skilled personnel, which can be prohibitive, especially for smaller operators. There is a lack of high-quality, clean data essential for training effective AI models, often compounded by data privacy and security concerns. The complexity of integrating AI into existing systems and workflows poses another challenge, requiring substantial changes to operational processes. The regulatory and governance issues, including compliance with evolving laws and standards, add an additional layer of complexity, making it difficult for MNOs to navigate the AI adoption process effectively.

Overcoming these barriers requires a strategic approach, such as investing in data management, upskilling employees, addressing cultural resistance, and carefully evaluating the potential risks and rewards of AI adoption, enabling MNOs to leverage the power of AI to improve their business strategies and remain competitive in the evolving telecom landscape.

Key factors to consider

Before integrating AI into their networks, operators should consider several crucial factors to ensure successful implementation and operation.

1. Data quality and management: High-quality, comprehensive data is essential for training effective AI models. Operators must ensure they have access to accurate, up-to-date, and relevant data, and employ proper data management practices.
   
   
2. Security: AI integration can introduce new security vulnerabilities. Robust cybersecurity measures are necessary to protect sensitive data and prevent unauthorised access. Continuous monitoring and updating of security protocols are essential.
   
   
3. Scalability: AI solutions should be scalable to handle increasing amounts of data and network traffic. Choosing AI platforms that can grow with network demands ensures consistent performance.
   
   
4. Interoperability: Ensuring seamless integration of AI systems with existing infrastructure is critical. Operators should select AI solutions compatible with their current hardware and software to avoid complex integration processes.
   
   
5. Skill set and training: Skilled personnel who understand both AI technology and telecommunications are vital. Investing in training or hiring experts is necessary for effective AI management.
   
   
6. Regulatory compliance: Adhering to local and international regulations regarding data privacy and AI usage is crucial. Compliance with laws like GDPR or CCPA helps avoid legal issues and maintain customer trust.
   
   
7. Cost considerations: Implementing AI involves significant costs. Operators should conduct a thorough cost-benefit analysis to ensure the investment delivers tangible returns.

By addressing these considerations, operators can effectively integrate AI into their networks, enhancing operational efficiency, improving customer experiences, and maintaining a competitive edge in the telecommunications industry.