The Telecommunications Industry Is Ripe for Artificial-Intelligence Driven Solutions, with Service Providers Expected to Spend $11.2 Billion by 2025, According to Tractica

Service Providers Look Toward AI Solutions to Help Ease High Fixed Costs and Retail Price Pressure

Telecommunications service providers face a handful of daunting market conditions. Around the globe, revenue and subscriber growth are flat. To combat profit erosion, most communications service providers (CSPs) are struggling through a process to become digital service providers more akin to web companies that offer rapidly evolving and highly customized services. According to a new report from Tractica, a central element of this transformation is the adoption of artificial intelligence (AI) technologies for network automation and management, customer experience management (CEM) and service delivery, virtual assistants for customer service and marketing, intelligent customer relationship management (CRM), and other key applications.

The Telecommunications Industry is Ripe for Artificial-Intelligence Driven Solutions, with Service Providers Expected to Spend $11.2 Billion by 2025

Tractica forecasts that CSPs will spend $11.2 billion annually on AI-driven software solutions across eight use cases by 2025, up from $419.0 million in 2018.

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“5G/Internet of Things (IoT) and digital transformation are initiatives that CSPs hope will drive topline growth. While they pursue these efforts, CSPs are under equal pressure to find ways to become more efficient and cut costs as a means to increase profitability,” says principal analyst Mark Beccue. “Telecom operators have begun to experiment and deploy AI-driven solutions that leverage fast, scalable interpretation, analytics, and prediction to generate revenue or reduce costs.“

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Tractica, an Informa business, is a market intelligence firm that focuses on emerging technologies. Tractica’s global market research and consulting services combine qualitative and quantitative research methodologies to provide a comprehensive view of the emerging market opportunities surrounding Artificial Intelligence, Robotics, User Interface Technologies, Advanced Computing, Connected & Autonomous Vehicles, and Wearables & Digital Health

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