For years, the telecommunications industry has grappled with the perception of being merely a utility, providing the essential "dumb pipe" of connectivity. While delivering reliable network services remains fundamental, the advent of artificial intelligence (AI) not only presents opportunities to transform operations but provides the insight and capacity for telcos to create a new palette of high-value services suited to business-to-business (B2B) customers. There is a clear role and need for telcos to be at the heart of digital transformation; the truly AI-native telco can position itself as a both trusted guide and innovation partner to these valuable customers. In volatile and fast-moving times, the sector is well placed to help enterprises navigate the complexities and unlock the immense value of AI. But this requires a strategic shift, leveraging unique assets and expertise in new ways to deliver tangible business outcomes.
Telcos in prime position today
The influential TM Forum recently noted that as organisations of all kinds “seek to digitalise operations and enhance their cybersecurity measures” communications services providers are “often seen as a trusted brand and a one-stop-shop.” Telecoms firms that can create and deliver AI applications which capitalise on this by helping B2B customers make this move will prosper. Those that can go further by putting AI at the heart of new services that respond to unmet needs and generate new revenue for customers will be at a significant advantage.
Today’s opportunity is to expand and enhance existing services, for example with AI managed network slicing, NaaS (network as a service), and CaaS (connectivity as a service), to provide more granularity, choice and differentiation for customers as they digitalise internal and external processes. IoT, automation and robotics, as well as enhanced supply-chain and logistics services are just a few areas where enterprises are looking for bespoke communications solutions that leverage AI and 5G technologies to cut costs and improve capabilities. This work is already happening. Analysys Mason recently reported that in the last 18 months, “operators have been sharpening their focus on revenue-generating AI use cases.”
Accelerate AI for tomorrow
Tomorrow, operators should help uncover new service opportunities that benefit enterprises and their customers. Operators are already experts in data analytics, and with AI can generate even greater insights from the vast amounts of unique, operator-exclusive data (network, customer, operational) they possess. This is an almost insurmountable advantage, virtually impossible for others to replicate. Leveraging that data and expertise and combining it (with permission) with enterprise data from customers can unlock breakthrough AI-powered services and insights.
Telcos also have the essential infrastructure for AI, including robust connectivity, data centers and edge locations vital for both training and inference. AI-native telcos that have combined those network and infrastructure capabilities with robust, scalable and flexible AI and data platforms, will be able to step in to overcome infrastructure limitations holding customers back as they embrace the AI revolution. These elements can be deployed to guarantee sovereign infrastructure that ensures data remains local, to catalyse the development of bespoke AI models with GPU as a service platforms, or to partner to deliver sector-specific AI initiatives, for example. Working with customers such as Telefonica in Spain, Teradata has already contributed to innovative AI solutions that see the Telco working with logistics clients to reimagine core workflows as part of their overall digital transformation strategy.
A word of caution
But this is not a case of "build it and they will come". There must be a laser focus on real B2B use cases. Creating AI capabilities in isolation and hoping businesses buy them is unlikely to overcome the reticence or lack of understanding around AI. Instead, telcos need to foster a "bottom-up" approach rooted in understanding they have of their customers and addressing their real needs and priorities.
Enterprises often face significant challenges in adopting AI at scale, including skills gaps, limited infrastructure, and fragmented data landscapes. Successfully bridging these with new services requires navigating complex data landscapes that span on-premises systems, private clouds, and public clouds. The AI-native telco must be adept at providing hybrid AI solutions that can bring AI models to the data, wherever it resides. Teradata’s VantageCloud supports all flavours of model development (cloud, hybrid-cloud, or on premises), training and deployment for inference within the database eliminating costly and risky data movements. It also ensures rapid scalability, efficiency and re-use of data features, and short time to value as data scientists and business users collaborate on the same data in the same platforms throughout development.
The opportunity for the AI-native telco
The AI revolution is still in its early stages; this is the time for telcos to take the lead and position themselves and the natural partner for enterprises looking to put AI at the heart of their growth. To do so, they need to become AI-native themselves and shift mindsets to seek out and create opportunities for AI to deliver business value. Internally this means creating efficiencies, improving customer experiences, and enabling new automation. Externally it means becoming a trusted guide, innovation partner and delivery expert for enterprise customers. Telecom operators have many of the assets needed to become valuable AI partners to their B2B customers. They have the brand equity, the local presence, infrastructure and connections with business customers. With Teradata they can quickly prepare their own data assets to capitalise on the opportunities to become AI-native. Then they can leverage Teradata’s cross-industry knowledge, best practices and references to engage and deliver high value services and products that help their business customers implement their own AI solutions.
McKinsey recently stated that leading edge telcos stand to become the backbone of the AI economy. The time to act is now. Get in touch with Teradata to see how we can help put AI at the heart of your business growth.