Telecoms Embrace AI to Boost Networks, Brace for Data Explosion

Mobile phone networks are increasingly harnessing the power of artificial intelligence (AI) to improve network performance, customer service, and energy efficiency, while also preparing for the data demands of the AI era.

Key developments in AI adoption by telecoms firms: Mobile network operators are leveraging AI in various ways to optimize their networks and services:

• AI is being used to dynamically manage radio frequencies, monitor cell towers, and reduce energy consumption during periods of lower demand.
• South Korea’s Korea Telecom can now localize and fix network faults within a minute using AI-enabled monitoring, while AT&T in the US employs predictive AI algorithms to anticipate potential issues.
• Vodafone and other operators are utilizing AI digital twins to continuously monitor the performance of their network infrastructure.

Preparing for the AI-driven data explosion: The growing use of AI in mobile phones is expected to generate and consume vast amounts of data, putting additional strain on networks:

• Telecoms firms are investing in 5G Standalone networks, which offer higher speeds and capacity compared to older 4G systems, to cope with the increasing data demands.
• Some experts argue that even 5G may not be sufficient, suggesting that the full potential of AI will only be realized with the rollout of 6G technology from 2028 onwards.

Enhancing customer service with AI: Telecoms companies are turning to AI to improve customer interactions and support:

• The Global Telco AI Alliance aims to develop a tailored AI chatbot for the telecoms sector, capable of handling most basic customer queries and freeing up call center staff to focus on more complex cases.
• Vodafone has partnered with Microsoft’s Azure OpenAI Service to enhance its digital assistant, Tobi, which interacts with over 40 million customers per month across 13 countries and 15 languages.

Potential impact on the workforce: While concerns exist about AI leading to job losses in the telecoms sector, some experts believe it could be empowering:

• Scott Petty, Vodafone’s chief technology officer, sees AI as a “virtual assistant” that frees employees from repetitive tasks, allowing them to focus on more creative and beneficial activities.
• The GSMA’s Alex Sinclair argues that AI could help democratize access to advanced tools, particularly for lower-income countries, enabling them to catch up with more developed nations.

Broader implications: The adoption of AI in mobile networks has the potential to drive significant improvements in efficiency, sustainability, and customer experience:

• AI could help make networks greener and the world more efficient by optimizing energy consumption and resource allocation.
• While the increasing use of AI may lead to some job displacement, it also presents opportunities for upskilling and focusing human talent on more complex and creative tasks.
• The successful integration of AI in mobile networks will likely require ongoing collaboration between telecoms firms, technology providers, and policymakers to ensure that the benefits are widely distributed and potential risks are effectively managed.