Nvidia recently unveiled its fourth annual “State of AI in Telecommunications” report. This year’s survey revealed exciting advancements as telecom operators embrace AI technology. Drawing responses from 1,000 participants, the survey highlights the significant investments made to enhance business outcomes through AI.
Survey results show that 90% of respondents acknowledge AI’s role in increasing revenue while reducing costs. This outcome is primarily driven by applications like autonomous networks, improved customer service, and optimized internal processes. Notably, 89% of telecom operators plan to boost AI spending in the coming year. This marks a substantial increase from last year. Among these operators, 35% foresee budgets growing by more than 10%.
Sebastian Barros, Managing Director of Circles, comments on this transformation, stating, “There is a seismic shift underway in the telecom industry driven by AI.”
The focus on network automation continues to grow. According to AI experts, network automation has now surpassed customer experience as a top priority for AI investment. Approximately 65% of telecom operators identify AI as a critical force in their automation efforts. This is getting recognition as a primary contributor to improved ROI. Despite 88% of telecom organizations being in early stages of autonomy, aiming for full autonomous operations continues to gain momentum.
Additionally, edge computing investments are rising. These investments are meant to bring AI capabilities closer to end users through distributed infrastructure. The aim is to enhance spectral efficiency, improve radio access network performance, and advance 6G research and development. Impressively, 77% of respondents expect AI-native networks to debut before the deployment of 6G.
AI is also playing a significant part in enhancing employee productivity. The survey shows nearly every respondent reports increased productivity due to AI, with 26% observing substantial improvements. Adoption of generative AI climbed to 60% of organizations, a rise from 49% in 2024.
Meanwhile, open source models and software are becoming vital in shaping AI strategies. Around 89% of respondents emphasize their importance, aligning with the industry’s collaborative approach. As generative AI gains traction, there’s a shift towards agentic AI, which autonomously coordinates decisions across domains. CEO of Chetan Sharma Consulting, Chetan Sharma, remarks, “Generative AI delivered fast productivity gains, but agentic AI is where telecoms begin to see structural ROI.”
In conclusion, as the telecommunications industry doubles down on AI investments, it promises enhanced revenue generation and cost efficiencies. With a focus on network automation and agentic AI, the future of telecoms appears poised for transformative growth.
