Google Cloud: Telco Firms Report 68% Gen AI Deployment Rate
Research from Google Cloud indicates telecommunications companies are deploying generative AI (Gen AI) – machine learning systems that can create content from existing data – at a rate that exceeds other industries.
The study, which surveyed 282 senior telecommunications executives globally, found 68% of telecommunications firms have moved Gen AI systems from testing into production environments, compared to a cross-industry average of 62%.
- 68% of telco companies have moved Gen AI into production, outpacing the global cross-industry average of 62%
- 74% of telcos with Gen AI in production are seeing ROI from at least one use case
- 48% of telcos reporting productivity improvements indicated employee productivity at least doubled with Gen AI
- 46% of telcos are prioritising operational improvements with Gen AI, while 45% focus on enhancing customer experiences
- Gen AI is being used for network optimisation, predictive maintenance, virtual call centre agents and field technician support
The number of telecommunications operators actively pursuing or deploying Gen AI has doubled, according to the research, indicating an acceleration in adoption rates across the sector.
Production deployments yield returns
The data shows 74% of telecommunications companies with Gen AI in production environments report positive returns on investment from at least one implementation case.
BT Group, the UK's largest telecommunications provider, emphasises the importance of methodical implementation. "The key to taking the leap from testing to production successfully is having solid foundations in place to ensure that all Gen AI use cases are effective from start to finish," says Deepika Adusumilli, Chief Data and AI Officer at BT Group.
Customer service applications represent a primary focus area for Gen AI implementation. Vodafone's 'SuperTOBi' chatbot exemplifies this trend, processing customer queries through AI-driven systems.
Vodafone, the global telecommunications conglomerate, reports applications across network planning. "Everything from how we plan our network investments—targeting them for customer experience, revenue growth, and churn reduction—all the way to how we optimise the network, excites me about the potential of Gen AI", says Simon Norton, Head of Digital Networks at Vodafone.
Productivity gains emerge
The research indicates 48% of telecommunications companies using Gen AI report that employee productivity has at least doubled since implementation.
Field operations represent one area experiencing efficiency improvements. Companies report developing network agents – AI systems trained on technical documentation – to support field technicians with rapid access to operational information.
TELUS, the Canadian telecommunications company, reports specific efficiency improvements. "Results from an internal employee survey showed that team members are saving more than 40 minutes on average per interaction with Gen AI," says Hesham Fahmy, Chief Information Officer of TELUS. "As adoption has ramped up over the past year, you can imagine the time and resource efficiencies we're already seeing."
The research indicates telecommunications companies are focusing Gen AI investments on internal operations improvements (46%) and customer experience enhancement (45%).
Implementation challenges
Data security and privacy emerge as primary concerns for telecommunications companies implementing Gen AI systems. The research shows 83% of respondents identify data privacy as a challenge, while 80% express concerns about data security.
The availability of staff with relevant skills affects 54% of companies, while ethical implications present challenges for 60% of respondents.
Despite these challenges, telecommunications providers continue to identify new applications for the technology. Customer service operations demonstrate particular potential for transformation through Gen AI implementation.
Indosat Ooredoo Hutchison, the Indonesian telecommunications provider, reports specific customer service applications. "Gen AI solutions can equip call centre staff with gen AI tools to enhance their productivity and effectiveness," says Vikram Sinha, President Director and Chief Executive Officer at Indosat Ooredoo Hutchison.
"Specifically, these tools can provide live call transcription; recommended responses derived from knowledge bases; real-time conversation analysis; and post-call sentiment analysis, leading to faster, more accurate, and more effective resolution of customer queries."
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