AI to fetch telecoms operators $680b revenue in 20 years

While artificial intelligence (AI) is predicted to add $15.7 trillion to the global economy by 2030, the technology is expected to provide over $680 billion to telecom operators in 15 to 20 years.

A new AI survey report was published by Mobile World Live in partnership with Dell Technologies, Hiya, MediaTek, NetScout and Subtonomy.The report, a 34-page document, that affirmed that AI is now sweeping across the world, said the technology promised to transform virtually every industry vertical.

It said the trigger for this is undoubtedly AI’s new ‘flavour’, generative AI. According to it, large language tools such as ChatGPT and Claude have revealed AI’s ability not just to detect patterns and learn skills, but to generate original content. In doing so, they have moved GenAI tech into the mainstream.

“Indeed, the clamour has reached a point where, according to PwC’s Global Artificial Intelligence Study, AI is predicted to add $15.7 trillion to the global economy by 2030. Needless to say, mobile is also in thrall to this technological revolution,” it stated.

Accordingly, the report said something has changed in the last two years, saying this tech is now dominating the conversation, pushing AI chip designer Nvidia to a market cap of $3.3 trillion and giving AI’s most famous startup, Open AI, a $157 billion valuation. 

The report observed that in the mobile space, analysts have been busy calculating the possible impact of the new wave of AI innovation.
“McKinsey, for example, believes revenue gains from the expanded use of the tech within the telecoms sector could be $680 billion over the next 15 to 20 years.

“This shouldn’t surprise us. One way to think about AI is that it does for brain power what the Industrial Revolution did for horsepower. This opens the way for unprecedented productivity gains,” it stated.

According to the report, it’s important to note that the new AI processes are different from traditional rule-based and determined algorithms. It said true AI should include a significant element of learning from training data to make decisions and perform cognitive functions.

On how mobile professionals feel this transformation will impact their organisations, the report said in its first-ever industry survey of C-level execs, published in 2024, where they were asked which new business area was the most attractive, “The answer ‘advanced AI’ came out top with a 30 per cent share.
That was 2x more than the second option. That settled it. So, we launched an ambitious project to collect the opinions of our readers.

“Just under 300 respondents completed the survey, of which the three biggest areas of business were Software Development (20 per cent), Mobile Network Operators (18 per cent) and Consultancies. 44 per cent of respondents were either C-Level, Directors or VP-Level, with 54 per cent of all respondents based in Europe, 16 per cent in North America and 13 per cent in Asia.”

According to Dell Technologies, AI technology has applications beyond the Network, saying it can help telcos with more specific functions.Dell noted that the most immediate use case is, arguably, customer care. “Telcos routinely use chatbots to support human agents to answer user questions. But the scripted, decision-tree responses of today’s bots leave a lot to be desired. Generative AI-based bots promise to improve results considerably. If AI can cut costs in the customer care department, it can also boost revenue in marketing. By feeding a genAI model marketing messages along with demographic and behavioural customer data, marketers can craft campaigns that convey the most effective messages to the right targets at the right time.”

According to Dell, the benefits of AI-enhanced network management are pretty self-evident, but still, this tech represents a significant investment.
59 per cent of telcos believe it will take one to three years to bring returns, while just 12 per cent believe they will recoup within a year, with 30 per cent opting for more than three years.

According to MediaTek, the industry is understandably excited about GenAI-enabled devices, saying smartphone sales have flatlined in recent years.

“The market needs a boost. When Chat GPT made its extraordinary debut in late 2023, it was obvious that generative AI would inevitably leap into mobile. And so, it proved. Today, all the major OEMs base their marketing activity around their GenAI features,” it stated.