Leveraging AI in telecom firms can unlock the potential of cutting-edge technology to attain digital transformation. AI can help telcos automate processes, create personalized customer experiences, and optimize network performance. AI can enable telcos to unlock new revenue streams and improve operational efficiency. To succeed in the AI era, building an AI-native workforce, embracing agility, and fostering innovation are critical. This article at McKinsey discusses the digital transformation induced by AI in the telecom industry.
Unlock the Full Potential of Business with AI in Telecom
AI can revolutionize industries through “self-heal” infrastructure and generative tools like ChatGPT for touchless customer service and marketing. The impact of these AI solutions has been felt across industries. AI leaders experienced a five-year revenue CAGR that is 2.1 times higher than their peers, according to the McKinsey Analytics Quotient assessment. However, the telecom industry has been slow to embrace AI, despite facing challenges such as flagging revenues and ROIC.
Telcos have yet to adopt an AI-focused mindset, and investments often do not align with top-level management priorities. To drive growth and renewal, telcos need to transition to being AI-native organizations. AI can be used to make personalized recommendations for customers and for a quicker response time. Telcos that embrace large-scale deployment of AI and transition to being AI-native organizations can drive growth and renewal, even in challenging environments.
Artificial Intelligence Powered Transformation in Telecom
Telecom operators have compelling reasons to become AI-native organizations. The increasing accessibility of AI technology and the rapid explosion of usable data makes it easier for telcos to leverage AI.
Organizations across industries have deployed artificial intelligence to achieve four critical outcomes relevant to telecom operators, namely:
- Drive revenue protection and growth through personalization,
- Transform the cost structure,
- Enable a frictionless customer experience,
- Meet new workplace demands.
Technology investments have a profound impact on the bottom line of the business. Operators need to make bets on becoming cost and efficiency-focused, experience-centric, or ecosystem players. To achieve the greatest payoff, telecom operators need to embrace the concept of an AI-native organization. They must embed the technology across the fabric of their entire enterprise.
The article also discusses:
- How AI in telecom is bringing change in its core business,
- Six themes that are gaining prevalence,
- And steps to build AI for the telecom industry.
To read the original article, click on https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-ai-native-telco-radical-transformation-to-thrive-in-turbulent-times