By: Nikhil Shoorji, Executive Director – Global Business Development, Infobip
The way we experience telecom services is changing faster than ever before. Not long ago, a network outage meant long hours of disruption, repeated calls to service desks, and dissatisfied customers waiting for solutions. That reality is rapidly changing. With the integration of artificial intelligence (AI), telecom providers are moving beyond reactive fixes to systems that can anticipate problems and prevent failures before they affect users. It is gradually becoming much more proactive, intelligent, and increasingly customer-centric.
According to industry estimates, the global AI in telecommunications market, valued at $2.7 billion in 2024, is projected to grow to $45 billion by 2034. This surge signals a clear shift: AI is no longer optional in telecom. It is the foundation of future competitiveness in the continuously evolving digital ecosystem.
Building Intelligent Networks
Telecom networks are becoming increasingly complex with the surge in data traffic, the rollout of 5G, and the rapid growth of connected devices. Nowadays, traditional maintenance models that used to react after failures are no longer sufficient. In this scenario, AI is helping operators meet this challenge by enabling continuous network monitoring, early anomaly detection, and fault prediction before service is disrupted.
This transition is significant. Instead of focusing resources on post-failure fixes, operators can plan maintenance proactively, reduce downtime, and maintain consistent service quality. According to Capgemini, 70% of telecom companies using AI have already reported measurable efficiency gains. More than just cost savings, AI enables networks to learn, adapt, and evolve in real-time. This, in turn, has a positive impact on customer experience also.
Transforming the Customer Experience
Customers today expect fast, personalized, and seamless digital interactions. The days of waiting in call center queues or relying on one-way SMS alerts are fading. AI is reshaping this landscape by enabling conversational platforms that provide instant, intelligent support across popular channels such as WhatsApp and Rich Communication Services (RCS).
With AI-powered chatbots and voice assistants, queries that once took minutes now take seconds. Predictive analytics makes it possible to anticipate customer needs, offering timely reminders, relevant promotions, or proactive service updates. As a result, AI-enabled interactions directly link intelligent engagement and loyalty.
Strengthening Security and Trust
Digital-first engagement has introduced new risks, from phishing attempts to SIM-swap fraud. Here too, AI is playing a decisive role. By analyzing massive volumes of traffic data in real-time, AI systems detect anomalies, assess risk scores, and block threats before they reach customers. This approach does more than safeguard revenue streams. It builds trust. In an industry where customers can switch providers with relative ease, trust and security become central to long-term relationships. AI in the telecom industry is also paving the way for multi-fold growth of telecom companies.
Unlocking New Growth Opportunities
Telecom operators hold vast amounts of data generated across millions of touchpoints. AI transforms this raw data into actionable insights, enabling personalized offers, churn prediction, and service enhancements. By delivering the right message to the right customer at the right time, operators can increase average revenue per user and strengthen retention. This data-driven approach is also opening doors to new business models. From intelligent upselling to advanced loyalty programs, AI makes personalization both scalable and precise.
Looking Ahead
AI’s role in telecom is still in its early stages, but its potential is expanding rapidly as it converges with 5G and the Internet of Things, enabling intelligent coordination across billions of devices. Emerging capabilities such as generative and agentic AI could take this further, powering networks that optimize themselves and even design new services. At the same time, customer engagement is poised for a fundamental shift, with platforms like WhatsApp already connecting more than three billion users and RCS traffic projected to reach six trillion messages by 2029.
As AI brings greater personalization and intelligence to these conversations, telecom providers have a massive opportunity to redefine both the quality and value of their connections. Those who act decisively now will not only reduce costs and enhance security but also shape the future of an industry that has always been defined by its ability to connect people.