AI has become the go-to answer for telecom operators seeking growth, efficiency, and better customer experiences. From automated customer service to network optimization, AI and Generative AI (GenAI) have the potential to reshape the industry. However, the TeBIT 2024 Executive Report, developed by ETIS and BCG, highlights a stark reality—telcos may not be realizing AI’s full potential.
While telecom operators are ahead of many industries in AI adoption, they are struggling to scale AI where it matters most—customer experience and operations. If AI is to drive true transformation, telcos must move beyond fragmented use cases and invest strategically in end-to-end AI integration.
AI in Telecom: The Big Picture
The TeBIT 2024 study assessed European telcos’ AI maturity based on four key factors:
- AI Maturity – How well AI is embedded in telcos’ strategies.
- AI Investments – The level of financial commitment to AI initiatives.
- Use Cases – The scope of AI applications across telecom functions.
- Realized Benefits – The tangible outcomes of AI implementation.
The findings reveal a mixed picture:
- Telecom ranks above other industries in AI maturity, ahead of media, utilities, and software.
- No telecom operator in the study reached “AI future-built” maturity, the highest level of AI integration.
- AI investments remain low—only 0.16% of revenues in 2023, compared to the 0.49% global telco average.
Where Are Telcos Investing in AI?
One of the most revealing insights from the report is the uneven AI adoption across telecom functions:
- Marketing & Sales lead in AI adoption, with 40% of use cases deployed at scale, benefiting from out-of-the-box AI solutions.
- Customer Experience & Operations lag behind, as many telcos struggle with scaling AI due to data complexity and lack of integration.
- Network & IT investments are below expectations, with AI-driven network automation and predictive maintenance remaining underutilized.
This raises a critical question: Are telcos scaling AI where it’s truly needed—or simply where it’s easiest to implement?
The Shift from CapEx to OpEx: A New AI Opportunity?
The TeBIT report highlights another important shift—telcos are moving from capital expenditures (CapEx) to operational expenditures (OpEx). With many telecom operators transitioning from on-premise infrastructure to cloud-based solutions, OpEx is rising. This makes AI-driven efficiencies more critical than ever, yet AI spending doesn’t reflect this urgency.
The Strategic Gap: Are Telcos Thinking Big Enough?
While telcos are experimenting with AI, the study suggests they lack a cohesive, strategic approach.
- Many AI initiatives remain opportunistic rather than structured, leading to isolated use cases instead of full-scale transformation.
- AI investments are stagnating, with spending expected to drop from 0.24% in 2024 to 0.2% in 2025, signaling a potential peak in AI funding.
- Other industries are building AI-driven business models, while telcos still treat AI as an add-on rather than a core enabler.
The Path Forward: Scaling AI for Real Transformation
If telcos want to fully unlock AI’s value, they need to rethink their strategy. The TeBIT report suggests a structured, long-term approach to AI investment and deployment:
- Embed AI across all core functions, not just in marketing and sales.
- Invest in AI talent and capabilities to drive innovation and scalability.
- Develop an AI roadmap aligned with business goals, focusing on customer experience and network operations.
- Leverage cloud and AI-driven automation to maximize operational efficiency.
Final Thoughts
Telecom operators understand AI’s potential, but understanding alone isn’t enough. To stay competitive, telcos must scale AI strategically—not just where it’s easy, but where it drives real impact.
The next few years will be critical. Will telcos embrace AI-driven transformation, or will they continue with incremental AI deployments?
Report:
tebit-2024-executive-report-january-2025
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