79% of telecom companies bet on AI modernization: IBM report

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IBM Institute for Business Value together with GSMA Intelligence presented a large-scale global study on the transformation of the telecommunications industry. The study, entitled “Rewiring the Telecom Mindset,” is based on a survey of 750 network division executives from leading global telecom operators, including Bharti Airtel, Deutsche Telekom, Telstra, Verizon, and Vodafone.

According to the data obtained, telecommunications companies implementing cloud computing and artificial intelligence gain significant advantages in productivity, scalability, and monetization of their networks. Meanwhile, 79% of surveyed executives place network performance as their top development priority, with network infrastructure modernization in second place.

The study revealed a significant gap between industry leaders and other players in the adoption rate of technologies: 62% of innovative companies use traditional AI for network planning compared to 40% of their competitors. An even more impressive difference is observed in the implementation of generative AI – 54% versus 27%.

A concerning signal was that 55% of respondents reported network security breaches in the past 12 months. Despite this, only 42% of executives consider network security a key challenge for the next three years.

In the next three years, telecommunications companies plan to significantly increase investments in network development:
– Cloud technology implementation: 20% growth
– Traditional AI: 16% increase
– Generative AI: 19% growth

“Telecommunications companies that apply a cloud approach using AI will be better prepared to solve complex challenges of modern networks and can more effectively use emerging opportunities,” noted Rahul Kumar, Senior Partner and Vice President, Global Leader of the Telecommunications and Media Industry at IBM.

The study also emphasizes the need for cultural transformation within companies for successful network monetization and maintaining competitiveness. This includes readiness for calculated risks, developing a collaborative culture, ability to learn from mistakes, and a proactive approach to innovation.

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