As adoption of artificial intelligence (AI) increases, we are entering the next leg of tech-enabled transformation across industries. In the telecom industry, for instance, AI has offered numerous enhancements in network operations and customer service. India is making huge strides in number of telecom subscribers. On last count, the country was home to 1203.69 million subscribers, bringing the overall tele density to 85.87%. Even as 5G deployment continues to surge, the advent of AI in telecom has the potential to process vast amounts of data to help industry players make faster decisions, reduce operational latency and foster innovation.
Role of AI-powered tools in revolutionizing telecom
AI-powered tools offer benefits across network management, predictive maintenance, and operational efficiency across the sector. For instance, telecoms can explore network traffic patterns that are useful for identifying any discrepancies in network issues proactively with zero touch orchestration. With the help of AI, teleservices can also offer automated troubleshooting, wherein problems are detected basis historical data and current network conditions, reducing downtime and manual involvement.
The power of predictive analysis through AI has the potential to optimize resource distribution, ensure better performance and reduce congestion. For the massive and complicated telecom infrastructure, disruptions of any scale can have significant consequences. With AI, telecoms can proactively schedule maintenance to help predict when equipment is likely to fail. Analyzing data through predictive maintenance helps to identify patterns that indicate potential failures, allowing timely interventions. This function not only helps in minimizing unexpected downtimes but also helps to extend asset life.
Additionally, when AI is used to drive predictive maintenance, telecoms are well-poised to significantly reduce maintenance costs as it prevents failure and minimizes downtime, thereby enhancing network reliability.
Another area where AI has proven to be beneficial for the telecom sector is operational efficiency. Automation of routine tasks can unburden human resources and divert their time towards managing more strategic activities helping Telecoms to adopt Technological interventions faster.
Moreover, AI tools analyze large datasets to provide insights and recommendations, enhancing decision-making processes across the organization. Finally, the continuous monitoring powered by AI allows organizations to assess performance metrics in real-time, facilitating quick adjustments and improvements.
Rise of AI-tools for enhancing customer experience
Telecoms are integrating virtual interactive chatbots with their customer relationship management (CRM) systems to ensure seamless communication across channels such as chat, email, and social media. While chatbots feature intuitive interfaces for easy navigation, voice-activated virtual assistants enable users to interact with the aid of natural language, enhancing the overall customer experience.
AI Powered chatbots can cater to consumers 24/7 by reducing response time, enhance customer experience and increase productivity. This way, users are not restricted to business hours and can get assistance whenever they need it. Along with real-time assistance to customers, AI enables personalized interactions that are largely based on and data-driven insights gathered with the help of chatbots. When a customer reaches out, the chatbot can reference their account history, preferences, and past interactions, offering tailored solutions and suggestions. Insights from AI based Sentiment analysis can be explored by the telecoms for the development of new products and services based on customer preferences and feedback.
When customer service is AI-driven it can easily handle a range of common issues—such as billing questions, service outages, and plan changes, thereby helping to speed up the resolution process. Consequently, employees get the time to focus on more complex issues that require human intervention.
Long-term impact of AI on the dynamics of the telecom sector
The growing demand for digital services has prompted telecoms to integrate AI-powered tools into their operations. As AI and automation continue to take bigger leaps of implementation, telecoms are being urged to evolve into "techcos"—a term that captures the shift from traditional telecom players to tech-focused, innovative businesses.
The adoption of AI-driven customer service solutions, such as chatbots and virtual assistants, is transforming the customer experience to the next level of customization and personalization. This integration enhances accuracy, reduces costs, and boosts workforce productivity. As technology advances, the potential for AI to further revolutionize operations is vast, fostering innovation and providing a competitive edge.
By improving availability, accelerating response times, and delivering personalized experiences, these technologies not only enhance customer satisfaction but also drive operational efficiency, enabling telecoms to remain competitive in a rapidly evolving market.
A version of the article appeared in the Communications Today Magazine Show Daily for Day 3 at India Mobile Congress. The same can be read here
Author
Purushothaman KG
Partner, Head Technology Transformation and Sector Head - Telecommunications
KPMG in India