Business

Telecom industry accelerates towards AI-native transformation with market-leading innovations

Wednesday, 19 November 2025 9:26AM UTC

Telecommunications providers are rapidly integrating advanced AI technologies to redefine customer engagement, optimise networks, and gain competitive advantage amid a transformative industry shift driven by generative AI and autonomous systems.

We are witnessing a pivotal moment in telecommunications, where the integration of artificial intelligence (AI) is poised to reshape the industry landscape fundamentally. The pressing question today is not if AI will transform telecom operations but how swiftly and strategically providers can adopt these technologies to gain a significant market edge. According to a recent analysis, 73% of senior telco executives now prioritise customer experience, recognising its critical link to revenue growth and competitive positioning. Network quality remains paramount, with nearly 40% of customer churn directly linked to network issues. Operators leveraging AI have reported up to 31% higher average revenue per user (ARPU) and notably lower churn, underscoring AI’s role as a decisive factor in customer retention and business success.

The telecommunications sector is evolving beyond conventional network management into a customer-centric model wherein networks are treated as products. Leading operators are utilising AI to analyse extensive Radio Access Network (RAN) data, up to 600 sessions per customer line daily, enabling them to pre-empt service degradations, optimise energy use, and personalise commercial offerings effectively. This shift towards the "Network-as-Product" paradigm reflects a software-as-a-service approach, where real-time insights drive precision capital expenditure and predictive maintenance, marking a transformation in how networks contribute to customer experience and operational efficiency.

Looking ahead to 2026 and beyond, the adoption of generative AI (GenAI) technologies will accelerate, with forecasts indicating that by 2026, half of communication service providers will have integrated GenAI models for customer-facing functions. By 2028, this adoption is set to dramatically alter workforce structures, enabling a 25% reduction in customer support headcount while reallocating talent towards higher-value activities. Sustainability also emerges as a critical focus, with half of operators expected to employ AI to meet carbon footprint targets by 2027, turning environmental compliance into a strategic advantage and potential revenue stream.

A notable technological advance on the horizon is the rise of agentic AI, autonomous software capable of independently making decisions, handling customer interactions, managing networks, and ensuring revenue assurance. The successful deployment of agentic AI, balanced with appropriate governance, promises significant operational efficiencies. However, such advances bring inherent risks, including AI hallucinations, integration challenges with legacy systems, data governance issues, cybersecurity threats, and workforce disruptions. Leading operators are advised to implement robust governance frameworks, comprehensive AI testing, transparent communication strategies, and workforce retraining programs to mitigate these risks and secure long-term trust and performance.

Several operators are already exemplifying these trends. Verizon, for instance, utilises GenAI to dramatically reduce churn by predicting call reasons and directing customers to the most suitable agents, aiming to retain 100,000 customers annually. With around 170 million calls processed yearly, Verizon’s AI-driven approach improves both customer loyalty and satisfaction, illustrating the tangible benefits of AI integration in customer support. Similarly, a leading U.S. telecom partnered with AI specialists to slash customer care calls by 30% and reduce call durations by 20%, simultaneously enhancing personalised, proactive customer communications.

Telecommunications providers are further enhancing their capabilities through strategic partnerships and technology investments. Lumen Technologies’ multi-year, $200 million commitment to Palantir Technologies’ AI platform highlights the increasing importance of integrating advanced AI into networking solutions, enabling businesses to deploy AI more securely and efficiently. Lumen has also secured $5 billion in new deals amid growing enterprise demand for AI-driven connectivity and cybersecurity, reinforcing the critical role of high-capacity infrastructure in supporting AI applications. On the innovation front, CommScope’s alliance with DvSum aims to boost network monitoring and call centre operations through AI-driven analytics, accelerating issue resolution and proactive fault management.

The foundation for successful AI transformation in telecom is comprehensive. Operators must prioritise evolving their billing and operational support systems into AI-native platforms that facilitate intelligent orchestration and GenAI-powered customer engagement. Establishing robust AI governance to prevent bias and hallucinations, investing in workforce upskilling, and maintaining human oversight are essential. The urgency is clear: those who implement these strategic actions promptly will secure a dominant market position, while laggards risk obsolescence in an industry increasingly defined by AI-driven customer experience and operational excellence.

In summary, the telecommunications sector stands on the brink of a decade-defining transformation, with AI as the linchpin of competitiveness. The convergence of advanced AI technologies, evolving customer expectations, operational efficiencies, and sustainability objectives forms a complex yet compelling imperative for immediate action. The future belongs to AI-native telcos, those ready to lead rather than follow in this accelerating revolution.

📌 Reference Map:

^[1] (ITBrief) - Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
^[2] (Reuters) - Paragraph 6
^[3] (Reuters) - Paragraph 7
^[4] (Reuters) - Paragraph 7
^[5] (Microsoft) - Paragraph 7
^[6] (GlobalLogic) - Paragraph 6
^[7] (TV Technology) - Paragraph 7

Source: Noah Wire Services

More on this

https://itbrief.co.uk/story/the-18-month-ai-window-that-will-determine-telco-market-leaders-for-the-next-decade - Please view link - unable to able to access data
https://www.reuters.com/technology/artificial-intelligence/verizon-uses-genai-improve-customer-loyalty-2024-06-18/ - Verizon is leveraging generative AI (GenAI) to reduce customer churn and enhance loyalty. By accurately predicting call reasons and efficiently connecting customers with suitable agents, Verizon aims to retain 100,000 customers annually. The company processes approximately 170 million calls each year and can now determine the reason for 80% of these calls using GenAI. CEO Hans Vestberg highlighted that with 60,000 call agents, the AI helps in matching calls to the most suitable agents, thereby improving customer retention and satisfaction.
https://www.reuters.com/business/media-telecom/lumen-palantir-team-up-accelerate-enterprise-ai-adoption-2025-10-23/ - Lumen Technologies and Palantir Technologies have announced a multi-year partnership to accelerate enterprise adoption of artificial intelligence (AI). Lumen will invest over $200 million in Palantir's software over several years. The collaboration aims to integrate Palantir’s Foundry and AI platform with Lumen’s digital networking solution, known as connectivity fabric, enabling businesses to deploy AI solutions more efficiently and securely.
https://www.reuters.com/business/media-telecom/lumen-secures-deals-worth-5-bln-ai-driven-demand-connectivity-2024-08-05/ - Lumen Technologies has secured new deals worth $5 billion from cloud and tech companies, including Microsoft, for its networking and cybersecurity solutions amid the rising adoption of AI-driven technologies. These deals reflect the increasing investments by enterprises in infrastructure capable of supporting AI-powered applications. Lumen is also in discussions for additional sales opportunities worth $7 billion. The company emphasizes the rising value and potential scarcity of high-capacity fiber due to growing AI requirements.
https://www.microsoft.com/en-us/industry/blog/telecommunications/2024/11/11/ai-powered-customer-care-elevates-customer-satisfaction/ - Telecom companies are increasingly partnering with technology providers to develop and implement advanced AI solutions that elevate customer engagement and operational efficiency. By using AI and cloud-based platforms, telecoms can create personalized, real-time responses and predictive support systems that align with customer expectations. This collaboration not only improves customer experience but also streamlines internal processes, enabling telecoms to adapt quickly in a competitive landscape.
https://www.globallogic.com/wp-content/uploads/2025/02/Transforming-CX-for-a-leading-telecom-provider-with-AI_ML-driven-intelligence-1.pdf - A leading U.S. telecommunications provider sought to enhance customer experience by leveraging AI/ML-powered analytics. Facing inefficiencies in call handling, high customer support volumes, and limited predictive insights, they partnered with GlobalLogic to develop an advanced AI-driven analytics platform. The implementation led to a 30% reduction in customer care calls through automation and AI-driven self-service, a 20% decrease in call duration by streamlining interactions with AI-powered automation, and higher customer satisfaction driven by personalized, proactive communication.
https://www.tvtechnology.com/news/commscope-partners-with-dvsum-to-offer-new-ai-based-tools - CommScope has partnered with DvSum to enhance its ServAssure NXT network monitoring platform through integration with DvSum’s AI-based CADDI (Conversational Analytics for Data Driven Insights) analytics technology. This collaboration aims to offer advanced AI-driven capabilities for call center and network operations, enabling faster issue resolution, proactive analytics, and improved fault management. By combining CommScope’s ability to collect and normalize performance data with CADDI’s AI insights, the upgraded platform provides real-time visibility into customer service and network conditions, improving efficiency and reducing call center triage times.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: ✅ The narrative is published today, 19th November 2025, indicating high freshness. The earliest known publication date of substantially similar content is 19th November 2025. The narrative is based on a press release, which typically warrants a high freshness score.

Quotes check

Score: 10

Notes: ✅ No direct quotes are present in the narrative, suggesting originality and exclusivity.

Source reliability

Score: 8

Notes: ⚠️ The narrative originates from IT Brief UK, a reputable organisation. However, the author, Padma Ravichander, is identified as the Chief Executive Officer of Tecnotree Corporation, which may introduce potential bias. The Tecnotree Corporation has a public presence and a legitimate website, but its specific reputation and credibility are not widely known.

Plausability check

Score: 9

Notes: ✅ The claims made in the narrative are plausible and align with current industry trends. The narrative lacks specific factual anchors, such as names, institutions, and dates, which reduces the score and flags it as potentially synthetic. The tone and language are consistent with industry reports, and there are no excessive or off-topic details.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: ⚠️ The narrative is fresh and original, with no direct quotes and a publication date of 19th November 2025. However, the source's reliability is uncertain due to the author's affiliation with Tecnotree Corporation, which may introduce bias. The lack of specific factual anchors and the absence of supporting details from other reputable outlets raise concerns about the narrative's credibility.

AI in telecom
Customer experience
Generative AI
Network-as-Product
Operational efficiency