The AI-Native Telco: Transforming the Industry with Artificial Intelligence

Introduction

An AI-native telco is a telecom operator which has AI as a foundational element of its business. It is a fundamental shift in the industry, which we can start to envision as operators are integrating Artificial Intelligence (AI) into core operations and services. The concept is garnering interest in the market, as conveyed by the theme for the upcoming DTW 2024 conference in Copenhagen: ‘Leading the way to an AI-Native Telco’. As more companies embark on the journey to become AI-native, we are interested in seeing how this transition will shape the future of the industry.

We believe there are two primary aspects to be an AI-native telco. The first aspect involves the deliberate application of AI within the organization. This means that AI is not merely an add-on or an afterthought: it is a fundamental part of the organization’s operations, and for established telcos this will require radical transformations. The second aspect involves using AI to develop new services and augment existing ones. In essence, AI as a mean to generate new revenue streams.

However, becoming an AI-native telco is not a straightforward process. It involves building the company’s operating model from the ground up with AI embedded at its core. This is not an overnight transformation but a journey that requires a clear path and a firm commitment. Creating a brand-new telco as AI-native is not an easy task either, as it would require building telco operations from scratch and building processes, systems and organization driven by AI. We can turn to other sectors to identify models of AI-native companies which can inspire the telecom industry.

We’re giving an overview on

• Embedding AI in all aspects of a telco’s operations
• Developing new services and revenue streams with AI
• Drawing inspiration from examples of AI-native companies

Conclusion

The transformative power of AI in the telecommunications industry is not just a promise for the future—it is an actionable reality today. As presented in this paper, becoming an AI-Native Telco is about integrating AI into every facet of a telco’s operations and services. It is not only about enhancing efficiency in operations, but also carving out new pathways for innovation and revenue generation.

As AI is yet another platform shift, it has the potential to reshuffle the cards in the telecom value chain and ecosystem. As Satya Nadella, Microsoft CEO, said “the battles we won and the battles we lost are all up for grabs again”. It will be interesting to see who emerges as the winners, who first embraces this AI-Native vision and brings it to life.

Curious about where to start this transformation towards an AI-Native Telco? Let’s talk

TelcoInsights is a series of posts about the latest trends and opportunities in the telecommunications industry – powered by a community of global industry experts and thought leaders.