The importance of telco AI to telcos in the Americas

The last 18 months have witnessed the explosion of interest in Gen AI creating a new momentum for discussions around AI in top-level announcements from CSPs in the Americas.  A count was made of discussions involving AI in the report and accounts and 4Q23 investor calls from the 11 largest CSP – from some research soon to be published by TM Forum.

Discussions were led by US and Canadian CSPs – with Latin American CSPs less vocal and three making no mention.  The graphic shows that focus was mostly on AI to reduce costs and mentions of specific AI deployments recently completed. However, discussions around responsible AI and the need to manage risk were also top of mind.  Examples of messaging came from:

• AT&T which discussed AI for the first time in their 2023 investor call, noted: “AI-driven efficiencies are also another significant leg of our cost savings efforts as we make progress on achieving our announced incremental $2 billion-plus run rate savings target by mid-2026”. Discussing projects in network design, software development and customer support services in its 2023 report and accounts
• The CEO of TIM Brasil discussed two large-scale AI projects bringing in “double-digit cost reduction”, in the areas of customer service and network maintenance in their 4Q23 earnings conference call

The appearance of AI on the agenda replaces some previous hot topics such as new digital services – as its potential ability to bring in good costs savings is more attractive than the currently “bottom of the hype cycle” discussions on 5G monetization.  However, incoming AI regulations may well act as a dampener on enthusiasm until they are well understood and new Responsible AI capabilities are implemented.