AI In Telecommunication Market: Opportunities for Automation and Cost Reduction

 The global AI in telecommunication market size was estimated at USD 1.45 billion in 2022 and is projected to reach USD 11.29 billion by 2030, growing at a CAGR of 28.2% from 2023 to 2030. Telecommunications is one of the fastest-growing industries utilizing artificial intelligence (AI) across various aspects of their business, including enhancing customer experience and network reliability.

 

Telecom companies primarily use AI for customer service applications. For instance, chatbots and virtual assistants address numerous installation, maintenance, and troubleshooting support requests. Additionally, virtual assistants scale and automate responses to support claims, thereby improving customer experience and reducing operational costs. For example, Vodafone Ltd. reported approximately a 68% improvement in customer experience after introducing its TOBi chatbot for handling customer queries.

 

By implementing AI and automation, telecom companies can reduce operational costs while enhancing the customer experience. Artificial intelligence has already transformed the core of the telecommunication business, with machines performing tasks traditionally done by humans, such as directing traffic by analyzing network content. It also aids in building self-optimizing networks, which can adjust the system based on existing conditions as defined by the respective designer. This technology supports network operations in detecting issues, such as Service-Level Agreement (SLA) breaches, and diagnosing root causes.

 

Key Market Trends & Insights

  • North America dominated the market, accounting for the largest revenue share of 34.8% in 2022. Furthermore, the increasing number of telecom companies employing automation and AI for customer service and network optimization is expected to bolster the region’s growth. A significant driver of growth in the North American segment is the presence of advanced telecommunications infrastructure.
  • Asia Pacific is anticipated to grow at the fastest CAGR of 32.9% during the forecast period. This growth is attributed to rapid technological advancements in emerging economies, such as China and India. For instance, Huawei Technologies Co., Ltd., a global telecommunications equipment and consumer electronics provider, collaborates with China Telecom Corporation Ltd., an internet access and mobile telecommunications services provider.
  • Based on application, the customer analytics segment held the largest revenue share of 28.2% in 2022. The growth of this segment is driven by the increasing need for real-time behavioral insights. Artificial intelligence enables operators to collect and analyze customer data from a subscriber's perspective. This information can be utilized in various scenarios, such as advertisements and personalized offers for subscribers.

 

Order a free sample PDF of the AI In Telecommunication Market Intelligence Study, published by Grand View Research.

 

Market Size & Forecast

  • 2022 Market Size: USD 1.45 Billion
  • 2030 Projected Market Size: USD 11.29 Billion
  • CAGR (2023-2030): 28.2%
  • North America: Largest market in 2022
  • Asia Pacific: Fastest growing market

 

Key Companies & Market Share Insights

Players in the artificial intelligence in telecommunication market are implementing strategies such as product launches, acquisitions, and collaborations to expand their global reach. For example, in October 2022, Nokia, a multinational telecommunication, information technology, and consumer electronics company, introduced an AI maturity assessment to assist communication service providers in formulating and executing effective AI strategies. This assessment serves as a valuable tool for communication service providers (CSPs) to optimize their use of autonomously driven software solutions. By leveraging these solutions, CSPs can enhance network quality, alleviate congestion, and improve the overall customer experience by providing innovative services and products.

 

Key Players

  • IBM Corporation
  • Microsoft
  • Intel Corporation
  • Google LLC
  • AT&T Intellectual Property
  • Cisco Systems, Inc.
  • Nuance Communications, Inc.
  • Evolv Technologies Holdings Inc.
  • H2O.ai.
  • Infosys Limited
  • Salesforce, Inc.
  • NVIDIA Corporation

 

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

 

Conclusion

The AI in telecommunication market is poised for significant growth, driven by the increasing adoption of AI technologies to enhance customer experience and optimize network operations. With substantial contributions from North America and rapid advancements in Asia Pacific, the market is set to expand further. Telecom companies are strategically investing in AI solutions to streamline operations and improve service delivery, making AI an integral part of the telecommunications landscape.

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