Why the Telco Industry is Under Pressure to Adopt Gen AI

Telecommunications operators are confronting decisions about Gen AI adoption as pressure mounts to deploy the technology across network operations and customer service functions. 

A survey conducted by Harvard Business Review Analytic Services, sponsored by Amazon Web Services (AWS), indicates that 83% of business leaders believe organisations that fail to use Gen AI will fall behind competitors in their sectors.

The research, titled Realising the Gen AI Opportunity: Embracing Change to Create Business Value, surveys business leaders across industries about their approach to Gen AI.

The findings reveal a gap between recognition of the technology’s importance and operational readiness to implement it.

What the key findings say about Gen AI

Abid Rahman, Senior VP of innovation at Eversana, a commercial services provider to life sciences companies, says: “Gen AI is not optional.

“Every industry and every company should be looking at Gen AI. If they don’t, they’re going to fall behind. It’s really as simple as that.”

The survey finds that 60% of respondents consider Gen AI a priority for their organisation, but only 48% say their organisation is ready to adopt the technology. 

This gap appears particularly relevant for telecommunications operators, which typically manage infrastructure systems developed over decades alongside regulatory requirements and operational processes that can slow technology deployment.

Risk concerns and implementation challenges

The survey identifies concerns about potential risks as the primary barrier to scaled adoption, with 56% of respondents citing ethical, legal and cybersecurity impacts. 

For telecommunications operators, which handle network infrastructure and customer data, these concerns carry particular weight given regulatory frameworks governing data privacy and security.

Edoardo Conte, Chief Technology Officer (CTO) of Restworld, a hospitality recruitment platform, addresses risk management in implementation decisions.

“It’s only risky if you don’t understand it,” he says.

“The ecosystem is evolving and changing very rapidly and if you rush in on some solution which is not complete or not a good fit for you, it won’t bring all the value you expect.”

The research highlights two additional barriers: 50% of respondents report lacking a clear implementation roadmap, while 46% cite the absence of organisational guidelines for Gen AI use. 

Survey participants also indicate that 53% of organisations are improving data and technology infrastructure as preparation, with the same proportion developing guidance and governance frameworks around Gen AI deployment.

Productivity gains and operational applications

Business leaders surveyed identify greater organisational productivity and greater employee efficiency as primary objectives, with each cited by 63% of respondents. 

For telecommunications operators, these objectives translate to specific use cases including network fault prediction, automated root cause analysis to reduce service interruptions – and traffic optimisation for performance improvements.

The survey shows that 45% of organisations view improved customer experience as a goal for Gen AI implementation. 

Applications in telecommunications could include service personalisation, automated resolution of billing queries through chatbot systems – and provision of real-time information to customer service staff. 

Cost reduction is a goal for 44% of organisations surveyed.

Edoardo provides an example from Restworld’s operations that demonstrates potential applications for telecommunications contact centres: “We’ve lightened the load for our recruiters, saving them from having to conduct between 10,000 and 12,000 conversations a month,” he says.

“We’re still assessing the numbers, but it could come to cost savings of around 20%.”

AWS’ role in the telecommunications sector research

AWS sponsors the Harvard Business Review Analytic Services research, which examines adoption patterns and implementation challenges across industries. 

The cloud computing provider offers infrastructure services that organisations use to deploy Gen AI applications.

Abid characterises the technology as providing capabilities beyond incremental improvements: “Gen AI is a tool,” he says.

“In fact, it’s a superpower.” He describes the technology as enabling employees and organisations to address problems with speed and computational capability that differs from previous approaches.

The research suggests that telecommunications leaders need to examine broader operational changes beyond efficiency improvements.

“Does it really make sense to continue to do the same type of work in the same way as before?” Abid asks.

“Organisations need to assess what they can change in terms of processes and the bigger picture if they want to fully reap the benefits of Gen AI.”