AI in the telecom industry faces a precarious balance between vast opportunities and a complex web of global regulations. Embedded in operations, AI powers tasks from network optimization to fraud detection. However, telecom operators can’t stay reactive to regulatory changes. Instead, they must take an active role in shaping the future of AI use by prioritizing ethical standards and responsibility.
A recent analysis by Omdia highlights that telecom companies primarily face regulations from the EU and South Korea. The EU’s AI Act applies broadly to AI system users, while South Korea focuses on developers and providers. This regulatory diversity results in a challenging landscape for multinational operators trying to ensure global compliance.
According to Sarah McBride of Omdia, these regulations increase the compliance burden and cost to meet new safety standards. This highlights a need for telecom operators to rethink their AI development and management strategies to navigate diverse legal environments effectively.
Globally, lawmakers are weighing AI benefits against risks, focusing on data quality, accountability, and security. Key concerns include unbiased data availability, cybersecurity, and privacy issues. Moreover, determining liability in AI systems presents significant challenges. McBride notes that telcos must consider high-risk scenarios, prohibited uses, transparency, and enforcement in AI policy areas.
It’s essential for companies to see AI governance as a core organizational element. If telecom operators adopt a reactive posture, they risk falling behind. Instead, they should establish a risk-management framework and lead in promoting ethical AI. This approach allows them to adapt AI strategies to local requirements without constant re-evaluation.
Successful AI adoption hinges on maintaining a delicate balance. As McBride puts it, AI carries immense innovation potential for telecoms, but it must be implemented with thorough risk assessments and adherence to standards of data quality and fairness. Embracing regulation as a foundation for development, rather than a hurdle, will enable telcos to innovate sustainably and responsibly.
Ultimately, by prioritizing ethical AI standards and strategic regulations, telecoms can seize the lead in building a trustworthy and innovative future.
