A recent global study conducted by the IBM Institute for Business Value, with support from GSMA Intelligence, highlights the advantages telecommunications and communication service providers (CSPs) gain by integrating cloud computing and Artificial Intelligence (AI) into their networks. The research involved 750 network executives from leading providers such as Bharti Airtel, Deutsche Telekom, Telstra, Verizon, and Vodafone.
The study titled "Rewiring the Telecom Mindset: How CSPs are Gaining Network Advantage with Cloud and AI" emphasizes that adopting a cloud and AI-driven approach is crucial for CSPs to remain competitive in the fast-changing telecommunications sector. Key findings reveal that 79% of telco executives prioritize network performance above all else, followed by network modernization.
Among those surveyed, 62% identified as pioneering technology innovators use traditional AI for network planning compared to a 40% adoption rate among peers. Additionally, 54% integrate generative AI into network planning—double that of their peers—showing how cloud readiness can enhance agility and provide on-demand resources for advanced AI capabilities.
Despite 55% of respondents experiencing a network security breach in the past year, only 42% view network security as a top challenge over the next three years. Executives anticipate increasing investments in cloud implementation by nearly 20%, traditional AI by 16%, and generative AI by almost 19% over this period.
The study also stresses the importance of cultural transformation within CSPs to seize monetization opportunities and maintain competitiveness. This involves taking calculated risks, fostering collaboration, learning from failures, and promoting innovation.
Rahul Kumar of IBM stated: "Telecommunications companies that adopt a cloud and AI-driven approach will be better equipped to navigate the complexities of the modern network landscape and capitalize on emerging opportunities." Peter Jarich from GSMA Intelligence added: "The study's findings underscore the critical role that cloud and AI will play in shaping the future of telecommunications."
IBM plans to showcase its focus on AI at MWC 2025 through various sessions highlighting customer engagement enhancements and operational efficiency improvements.
For further details or access to the full report, visit ibm.com/telecom-networks-cloud-ai.
