Increased AI Spending in Telecom Companies

Telecom companies are expected to invest more in AI for automating network management, with predicted spending to reach $20 billion by 2028, according to a report by Juniper Research. This would mark a considerable increase from the estimated $6 billion in spending in 2024.

Reasons for Increased Investment

The expected growth in investment in AI for telecom companies is attributed to several factors, including:

• Expansion of 5G networks
• Development of future 6G networks
• Increasing use of cellular connectivity by enterprises for applications like smart factories and self-driving vehicles

Role of AI in Network Orchestration

AI software is expected to play a vital role in optimising network performance and security. The report estimates that over 50 percent of operator spending will be focused on network performance and security, highlighting the critical importance of AI orchestration in these areas.

Impact on Network Efficiency and Cost Reduction

Automating functions such as real-time network analysis and rapid adjustments to changing demands can help minimise expenses associated with network operations and provisioning. This is essential for telecom companies as they strive to provide the best quality of service to customers.

Impact on Customer Demand

Telcos that fail to incorporate AI may struggle to keep pace with customer demands for performance and security. This highlights the increasing importance of AI in the telecom industry to meet evolving customer needs and remain competitive.

Accessing the Report

A full copy of the report can be accessed here (paywall).

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Tags: 5g, 6g, ai, artificial intelligence, connectivity, enterprise, juniper research, mobile, network orchestration, networks, operators, report, research, study, telecommunications, telecoms