As telecommunications companies adopt technologies like virtualization, software-defined networking (SDN) and NFV orchestration, artificial intelligence is poised to play a major role in automating these and facilitating their integration.

Why AI Is Important for Telecommunications Networks

According to the highly respected consultant Faisal Kawoosa, who heads the Telecoms and SemiTronics practices at CyberMedia Research in India, as more reliable and affordable bandwidth is enabled it will unleash a plethora of opportunities for telecoms networks. He adds that telecommunications is becoming the default highway for everything related to digital, with potential for generating a whole new set of revenue streams.

AI is expected to have an impact across a multitude of areas, the most important of which are traffic classification, anomaly detection and prediction, resource utilization, and network and orchestration. It will also empower mobile devices with virtual assistants and bots. Artificial intelligence and semantics will establish new benchmarks and resolve most issues related to customer care, network coverage, billing, personalization of service and product offerings and much more besides.

AI and New Revenue Streams

AI algorithms can combine historic patterns, lookalike patterns and behavior with real-time data to optimally respond to consumers at the right time and in the right context. These then benefit from personalized, accurately targeted and relevant recommendations and offers.

The key area where telcos can deploy AI to generate new revenues is subscriber intelligence. In everything from contextual and personalized upselling to innovative credit models, they are enabled to customize their real-time offerings and improve conversion rates.

As offers become smarter as a result of advances in machine learning, customers’ shopping behavior will also improve. This will result in even better conversion rates for new, AI-powered business models.

What Does the Future Hold?

The primary goal of telecoms and media companies is to harness AI technologies to improve efficiency, slash staff-related costs and bolster revenues. Other major motivations include improving customer support, marketing & engagement, operational insights, regulatory compliance and fraud detection while supporting business innovation.

Today most telecommunications players are already experimenting with AI, especially for generating actionable intelligence from structured and unstructured data. A diverse crop of new, AI-powered applications can be expected to appear over the next 12 to 18 months.