The AI imperative: Why APAC telcos can’t afford to wait

Unlocking efficiency, engagement and earnings

AI has been heralded as a savour to the telecoms industry. This is not surprising given its promise to answer the urgent prayers of its church – that is, to enhance operational efficiency, elevate customer experiences and empower new revenue streams.

Take Japan’s SoftBank, for example. Together with Ericsson, it is exploring AI-integrated radio access network (RAN) solutions to enhance network efficiency, a key driver for operational excellence.

In customer experience, operators like South Korea’s SK Telecom and Singapore’s Singtel are developing large language models (LLMs) to improve customer interactions via AI-powered chatbots and digital assistants.

To grow revenue, Japanese telco giant NTT has developed a device-as-a-service platform, powered by its “Edge AI” technology to drive revenue growth by leveraging AI to manage and optimise devices through subscription model. This unlocks new opportunities by supporting internet of things (IoT) products and fuelling 5G-enabled growth across various industries.

Why waiting could cost telcos their future

Waiting is a dangerous game. While competitors race ahead, telcos that delay AI adoption risk falling behind and losing out on operational efficiencies, new revenue streams and customer loyalty. Every day of hesitation gives your competition a step ahead.

The industry is undergoing a fundamental shift and those who are unwilling to embrace AI will find themselves struggling to maintain relevance in a market that increasingly values agility and innovation.

Connectivity needs from customers will become increasingly sophisticated with advances in network slicing, 5G-enabled devices and growing demand for industry-specific solutions. As industries such as healthcare, manufacturing and automotive adopt 5G and IoT technologies, telcos will need to support highly tailored, real-time connectivity. Without AI, managing these complex, dynamic demands will lead to operational inefficiencies, resulting in network congestion, service disruptions, and lower customer satisfaction. This, in turn, will drive churn and erode customer loyalty.

Furthermore, AI is a catalyst for new revenue streams, from personalised customer experiences to IoT and 5G-driven services. Telcos that hold back risk missing out on emerging opportunities, while their competitors build innovative offerings and gain first-mover advantages. Without leveraging AI to unlock new business models, telcos risk becoming stagnant, unable to capitalise on the opportunities that AI presents.

Getting started on AI

Embarking on the AI-led revolution may seem daunting but it begins with one small step. You do not need to crack everything at once. Start by identifying key operational bottlenecks that can be addressed through AI-driven solutions. Commission a pilot project that tackles a specific challenge, such as optimising network efficiency or improving customer support through AI-driven chatbots. This focused approach will not only provide tangible results but also lay the foundation for scaling AI across the business.

Inaction today means irrelevance tomorrow. This waiting game could lead to missed efficiencies, shrinking market share and an inability to keep up with the changing demands of customers and the industry. Make AI your priority now to secure your place in the future of telecoms.

Edwin Lin is principal consultant at Omdia, part of Informa TechTarget