GenAI With Purpose

Generative artificial intelligence (GenAI) is important, but it’s just part of the story in the next chapter for telecom. Let’s start with some context.

Telcos have only now reached a tipping point in their deployments of 5G standalone (SA) and advanced services. These are in the early stages of rollout and commercialization, with nascent value being captured in the early examples of enhanced video calling, industrial private networks with guaranteed SLAs for mission-critical operations, public safety services and live event broadcasting. And, as you might expect, just as these services are becoming a reality, the industry’s attention is already shifting toward 6G.

Through discussions with telco technology leaders worldwide, I see strong evidence that the long-awaited emergence of the next-generation telco is around the corner. I predict this shift will take shape in the second half of this year.

#1: The Next-Gen Telco: An Evolution, Not a Step-Change

Telco transformation is best understood as an evolution rather than a series of disruptive step-changes. Telcos can no longer afford to remain stagnant, nor can they wait for a single breakthrough moment to propel them forward. The 3GPP development roadmap reflects this reality. 3GPP Release 18 lays the foundation for the continuous evolution of next-gen services critical for growth in an era where telcos are no longer the lone tether for consumer and enterprise customers, but are becoming part of the fabric for ubiquitous and diverse connected services. These newly emerging capabilities unlock critical enablers for the connected world:

• Becoming increasingly dynamic: Historically, telco networks have delivered services on a best-effort basis. Today, we are entering an era where networks can be swiftly and seamlessly orchestrated and managed to provide guaranteed levels of service. This shift unlocks new industrial, enterprise and personal use cases that require precise and predictable connectivity.
• Expanding the device ecosystem: Connectivity and intelligence are being embedded into an ever-growing number of devices, driving new use cases in areas such as IoT, smart cities and industrial automation.
• Breaking free of terrestrial constraints: Seamless interoperability between terrestrial and satellite networks is becoming a reality, allowing connectivity to reach previously inaccessible areas and supporting global-scale applications.

#2: Why GenAI Matters

These network evolutions are what will make GenAI truly useful. Without a catalyst for change, GenAI, for its own sake, cannot offer a mechanism for delivering enhanced business outcomes.

GenAI is one of three pillars that will drive the next-generation telco:

• Cloud native architectures: Automating and orchestrating business systems, ensuring agility and efficiency.
• Evolving business models: Unlocking new customer use cases and creating new partnerships across expanding value chains.
• GenAI fueling new interactions: Leveraging the power of advanced AI to drive revenue, improve operational efficiency and enhance customer experiences.

#3: GenAI as a Revenue Driver

As the next-gen telco emerges, success will be defined by the ability to stay ahead in capturing revenue from new services, with a multitude of possible revenue streams greater than ever managed by telco business systems. This is where GenAI offers the most value. By analyzing network activity and billing data, telcos can uncover customer patterns and behaviors, helping telcos optimize and capitalize upon new revenue streams. Some important applications include:

• Dynamic offer creation: Delivering personalized offers like optimized data plans or cloud storage based on real-time usage and preferences.
• Encouraging top-ups and add-on services: Using AI-driven insights to identify customer segments who will benefit from contextual services or extended offers such as premium content or adjacent services.
• Building customer loyalty: Identifying churn risks and proactively engaging customers with tailored support, incentives and rewards, which can extend across an extended value chain of partners that build community and stickiness.
• Reducing churn: Predicting and addressing service issues and customer dissatisfaction before they lead to a decline in usage and spend, or even cancellations.

#4: Where GenAI Meets Transformation

The telco industry is on the brink of significant transformation, driven by continuous evolution rather than sudden disruptions. The convergence of dynamic networks, an expanding device ecosystem and seamless connectivity are setting the stage for GenAI to have a meaningful impact. But for GenAI to be truly valuable, it must serve a purpose beyond being just another technology trend. When applied strategically, GenAI can help telcos maximize revenue opportunities, enhance customer experiences and stay ahead in an increasingly competitive landscape.

In a shifting landscape, the telco is adapting to a new role, and the most perilous aspect of this transformation will be creating and supporting interactions with customers in entirely new ways as new services demand more immediacy, indirect channels and temporal services. In the journey to becoming a next-gen telco, GenAI is not just an option — it’s a necessity, unlocking the means for telcos to achieve this transformation.

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NOTE: This post was adapted from an article that appeared in The Fast Mode, March 4, 2025.