Telcos are lapping up generative AI

The study, commissioned by SAS and carried out by Coleman Parkes Research surveyed 1600 GenAI strategy and data analytics decision-makers globally about plans to deploy GenAI, how the technology is integrated into their planning, and what challenges they are facing. 

The research found 70% of telcos are currently using GenAI and have either fully implemented it or are running tests, whether that be with marketing, sales or IT. 29% are currently deploying or planning to deploy the technology ‘across the enterprise’. 

The telco sector comes ahead of other industries in this regard, with an average of 54% having fully or partially implemented the technology. The next highest adopters are retail with 66% and banking and insurance with 60%, says the report.     

Open source large language models (LLMs) were found to be the most common approach for telcos, with 38% of organisations adopting them compared to 29% of other industries on average. Meanwhile 89% of telcos expected to invest in GenAI in the next financial year – which turns out to be the joint highest sector alongside the insurance industry.

“It's not surprising to see the telco industry take the lead in the use and implementation of GenAI,” said Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe. “Our research reveals that senior decision-makers not only recognise the significant advantages from using the technology but also appreciate its transformative potential, given that nearly one in three plan to adopt it across the entire enterprise. By leveraging GenAI, they see opportunities to enhance customer engagement through personalised interactions, improve predictive analytics for more informed decision-making, and strengthen their competitive positioning in a rapidly evolving market.

“However, they also recognise the critical importance of addressing associated risks. As the industry continues to innovate, it will be essential for telcos to navigate these challenges effectively to maximise the benefits of GenAI. By prioritising data privacy and security, they can fully harness the power of GenAI to enhance operations and better serve their customers.”

In terms of any worries telcos have about all this GenAI suddenly buzzing around the place, the report said 83% referenced data privacy, 80% data security, 60% ethical implications, and 54% in-house talent and skills.