Telecom firms lead the way in GenAI adoption & investment

Telecommunications companies are at the forefront of generative AI (GenAI) adoption and investment, according to a recent study.

A survey conducted by Coleman Parkes Research and commissioned by SAS found that 70% of telecommunications firms are currently utilising GenAI, either having fully implemented it or running tests in preparation for its integration into regular processes such as marketing, sales, and IT. Additionally, 29% of these companies are in the process of deploying or planning to deploy the technology across the enterprise.

The research, which involved 1,600 global decision-makers in GenAI strategy and data analytics, discovered that the telecom sector is leading other industries in GenAI adoption. Only 54% of organisations in other sectors have fully or partially implemented the technology. Retail follows with 66%, while banking and insurance both reported 60% adoption.

The study also highlighted that open source large language models (LLMs) are the most common approach for telecommunications companies, with 38% having already adopted them, compared to an industry average of 29%.

Looking ahead, 89% of telecommunications companies expect to invest in GenAI in the coming financial year, ranking the same as the insurance industry in terms of investment intentions.

The telecommunications industry has outlined its primary concerns associated with GenAI adoption, which include data privacy (83%), data security (80%), ethical implications (60%), and the availability of in-house talent and skills (54%). These concerns are not unique to the sector, as similar issues are prevalent in banking, where 74% cite data privacy, and 71% data security as significant apprehensions. The public sector, insurance, life sciences, and manufacturing sectors also express comparable concerns.

Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe, commented on the findings, "It's not surprising to see the telco industry take the lead in the use and implementation of GenAI. Our research reveals that senior decision-makers not only recognise the significant advantages from using the technology but also appreciate its transformative potential, given that nearly one in three plan to adopt it across the entire enterprise. By leveraging GenAI, they see opportunities to enhance customer engagement through personalised interactions, improve predictive analytics for more informed decision-making, and strengthen their competitive positioning in a rapidly evolving market."

Björkman further noted, "However, they also recognise the critical importance of addressing associated risks. As the industry continues to innovate, it will be essential for telcos to navigate these challenges effectively to maximise the benefits of GenAI. By prioritising data privacy and security, they can fully harness the power of GenAI to enhance operations and better serve their customers."

The SAS-backed study offers various recommendations for organisations aiming to deploy GenAI effectively. These include strategic deployment, comprehensive governance, technological integration, and expert guidance.

SAS's global report on GenAI adoption delves further into best practices and strategic insights, aiming to empower businesses by detailing the technology's potential and providing comparisons across key markets and industries.