A new global study by IBM highlights the growing shift among telecommunication and communication service providers (CSPs) toward AI and cloud adoption.
One key takeaway from the research is that 79% of telecom executives place network performance as their highest priority, with network modernization ranking second. CSPs focus on AI-powered and cloud-driven solutions to enhance operations as the industry faces increasing demands for speed, reliability, and scalability.
“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. By rewiring their mindset and embracing a culture of innovation, CSPs can unlock significant benefits and stay ahead of the curve,” said Rahul Kumar, Senior Partner & Vice President, Global Industry Leader for Telco & Media Industry, IBM.
In addition, the study shows that technology leaders adopt AI significantly faster than their peers. Among those leading the way, 62% use traditional AI for network planning, surpassing the 40% adoption rate among other companies. In addition, 54% of these innovators have integrated generative AI into network planning, which is twice the adoption rate of their competitors.
Security risks
Despite the technological advancements, 55% of CSPs reported experiencing a network security breach in the past year. However, surprisingly, only 42% of executives rank network security as a major challenge for the next three years. This discrepancy suggests that while cybersecurity remains a critical issue, some telecom leaders may underestimate digital transformation’s ongoing threats and vulnerabilities.
Focus on cloud implementation
Companies will significantly increase investment in AI and cloud infrastructure in the coming years. Telecom executives expect to increase spending on cloud implementation by nearly 20%, traditional AI by 16%, and generative AI by 19%. These investments reflect the industry’s commitment to leveraging AI-driven capabilities and scalable cloud infrastructure to meet growing consumer and enterprise demands.
Beyond technology adoption, the study highlights the need for a cultural transformation within CSPs to maximize network monetization and maintain competitiveness. This includes fostering a mindset that embraces risk-taking, encourages collaboration, learns from past failures, and promotes continuous innovation.