Telecoms industry leads generative AI adoption

The telecoms sector is at the forefront of generative AI (GenAI) adoption, according to a study involving senior decision-makers globally.

Commissioned by SAS and conducted earlier this year by Coleman Parkes Research, the study surveyed 1,600 decision-makers responsible for GenAI strategy and data analytics. It aimed to assess key investment areas and the challenges organisations face in implementing GenAI technology.

Participants were asked about their current GenAI deployment plans, how the technology fits into their strategic objectives, and the obstacles they encounter.

The research revealed a staggering 70% of telcos are already using GenAI, with many fully implementing or testing the technology across departments such as marketing, sales, and IT. Furthermore, 29% of these companies are either deploying or planning to deploy GenAI enterprise-wide.

The telecoms industry outranks other sectors in GenAI adoption, with an average of 54% across industries having fully or partially implemented the technology. Following telcos are retailers (66%) and banking and insurance (60%).

Open source large language models (LLMs) are particularly popular among telcos, with 38% of organisations adopting them, compared to a 29% average across other industries.

In terms of future investment, telcos are once again in the lead. 89% plan to invest in GenAI in the next financial year—the same figure as the insurance industry.

However, the telco industry is not without its concerns. Data privacy (83%) and data security (80%) top the list of worries, followed by ethical implications (60%) and a shortage of in-house talent and skills (54%).

These concerns are mirrored in other sectors, such as banking, where data privacy (74%) and data security (71%) are also significant issues. Similar trends are evident in the public sector, insurance, life sciences, and manufacturing.

Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe, commented: “It’s not surprising to see the telco industry take the lead in the use and implementation of GenAI.

“Our research reveals that senior decision-makers not only recognise the significant advantages from using the technology but also appreciate its transformative potential, given that nearly one in three plan to adopt it across the entire enterprise.”

Björkman highlighted the opportunities GenAI presents in enriching customer engagement, refining predictive analytics, and enhancing competitive positioning. However, she also emphasised the importance of addressing associated risks: “By prioritising data privacy and security, they can fully harness the power of GenAI to enhance operations and better serve their customers.”

The SAS study outlines several recommendations for successful generative AI deployment, including:

• Strategic deployment
• Comprehensive governance
• Technological integration
• Expert guidance

These insights are part of SAS’ global report, which offers detailed best practices and strategic advice designed to help businesses fully exploit GenAI’s potential. The report also provides comparisons across key markets and industry sectors.

As the telco industry continues to embrace and innovate with generative AI, effectively navigating the associated challenges remains crucial. By addressing key concerns and investing strategically, the sector can achieve significant benefits.

(Photo by Harley-Davidson)

See also: The EU AI Act and telecoms fraud

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Tags: ai, artificial intelligence, digital transformation, genai, generative ai, telecoms