Telecom operators are nothing new to AI. They have quietly optimized networks for years. However, with the surge in generated AI, the sector is ready to become both a major user and enabler in the next wave of global intelligence.
(This is an intro exompto from Telecom's new RCR wireless editing report on AI. “Use AI, support AI and get the broad intelligence of Telecom” – you can download it for free here.
In short – what you should know:
The familiar technology – Carriers have long used AI (particularly ML) to optimize operations and have already had a strong data foundation.
Explosive growth – Prediction predicts significant growth of AI in telecoms, and generates AI to drive new investments and experiments.
Practical Applications – Operators focus on practical and valuable AI use cases, balancing prediction tools with new generation techniques.
Telecom AI state – how do you get your head into such topics? Because it is a monster, zooms out into a range of discussions about multi-level advances in global technology, and zooms in into a Gnarly analysis of the impact of multi-sided in a global domain. Telecom is just about anything except that it's different from other sectors when it comes to AI. Because they own “hubs and highways,” they pass AI traffic to the hands of users.
So there is the opportunity to change itself with AI and embed itself in the AI distribution chain in order to somehow change the global economy. This is essentially a simplified itinerary for future journeys. So, it's a wild ride, so I hold my hat. When you try to load a map, talk a lot. But first, as an introduction, we need to stock up and ask questions. How are you doing? What is the view from the passenger side now?
Stephen Douglas, Spirent's Market Strategy Director, climbs up and points out the window. “AI, or more specifically, machine learning, is nothing new to carriers,” he explains. “They've been using it in their pocket for years. They didn't need to convince them of its value. They found themselves sitting on a large data asset some time ago. Many people built data lakes and worked to integrate data to optimize operations.
In fact, analysts have field days in growth forecasts. The TELCOAI market is worth $5 billion in 2029 (OMDIA), with $113 billion by 2030 (Grand View Research), $39.83 billion by 2030 (Maximizing market research), or $58.74 billion by 2032 (Forthing Business IngightSS). Ultimately, of course, we are forecasting the combined annual growth rate (CAGR) through 2029, which may be the most trusted on these pages.
The ABI research is equally sharp, expecting operators to allocate $47 billion to Modish Generative AI Solutions, starting from just $268 million in 2025. Douglas suggests that “Telcos is leading the use and adoption of AI.” I know his company. Handles automated testing and warranty from the world's top carriers. This includes validating new AI projects (with human guidance for now) before being run free of charge on systems and networks.
“This new wave just accelerates things,” he says, referring to the swell created by the generator AI. He recently returned from MWC, the Big Telecom showcase in Barcelona (March). “It feels like business as usual,” he says. “Telephone companies are narrowing down the 1,000 things they can do. They're not trying to boil the ocean. They're not shaking with more complicated use cases.
This means extending important predictive AI (machine learning; ML) practices, and introducing new generation AI systems on top that are sometimes connected to large-scale language models. These projects will be discussed throughout this article along with how Telcos is trying to crash AI infrastructure parties.
