Edition #24: 4 Ways AI Could Disrupt The Telco Industry – And How To Prepare

I’ll admit it. I’m a bit of an AI geek. I love using various LLM models to research things, which comes in handy in my side project as a science fiction writer! I have also used various techniques to create some artwork for my projects, and I have to say the results can be amazing.

As somewhat of a futurist, I love technology and gadgets. My favourite right now is a smart pair of Ray-Ban Meta connected glasses. They enable me to connect to my smartphone while I’m wearing them and play music, take pictures and even send and listen hands-free to text messages. They are so cool! There is a beta launch of an advanced AI assistant but it’s available in the US only – I’m dying to get my hands on that!

This of course leads me to think about where the telecommunications industry is headed, and what impact AI could have on the retail side.

In this newsletter, I’ll share a few of my musings on how AI could change telco in 3, 5 or 10-years’ time. Things are moving FAST! This could be next year!

1) Retail stores become smaller and more automated

The cost of human resources and brick and mortar overheads are increasing. As AI starts to improve the speed and efficiency of salespeople, we will need less of them, and “clever tech” will replace a lot of use cases currently deployed in retail stores.

Picture a self-service kiosk with a talking AI bot called “Sofia” that can process address changes, talk to and understand the human customer, handle documentation checks, and even process bill payments. I’m confident this will happen soon.

I can envision smart POS systems that are hyper-connected to all aspects of the OSS/BSS ecosystem and suggest products to add to the basket based on usage. I can also imagine a scenario where the customer could input a list of wants and the POS could recommend the exact device and plan to buy. Gimme!

Expect: Smaller stores, more marketing theatre and “brand” immersion, with faster check outs and a huge self-service focus.

2) Inventory moves faster from A to B

Supply chains are complex beasts. Managing huge amounts of data is no mean feat. Just think of the journey an item takes - from OEM, to warehouse, to courier, to sub distributor, to local courier, to stores and customers – it’s a lot!

The best telcos deploy a unified Warehouse Management System (WMS) that can be used across all of these channels and integrates seamlessly into transactional systems. Once AI is fully embedded across the supply chain, processes like Collaborative Planning, Forecasting and Replenishment (CPFR) will become turbo charged, as “just in time” becomes a more cost-effective reality than it is today.

I see a world where moving stock to where it’s most needed (and likely to sell) quickly becomes a reality and not just a dream. Imagine being able to run an “ageing” query on your estate inventory? The best WMS systems will tell you exactly where your oldest stock is, and what you should do with it, whether that’s liquidate it or recall it.

Expect: Super smart systems that you can interrogate to improve on-shelf and in-channel availability. Systems that connect multiple channels and enable any location to become a supply node for outbound deliveries to end customers.

3) Account management becomes an automated salesperson

Today, many telcos have a self-care app for self-service transactions. When AI gets its hands on it, watch out. Now, these apps will be fully integrated with the customer's ecosystem.

Picture this: a customer’s personal calendar shows a trip from the UK to New York in 5 days. Their self-care app springs into action and notifies them of the trip, analyses their current roaming parameters, and suggests that they “turn on” a 7-day USA roaming package. With one click, they can say “yes”, and pay the required £20 one-off fee to turn it on.

Now, imagine your customer is due to upgrade their phone as their 3-year contract is coming to an end. Their app will once again make relevant suggestions and may even start a conversation about their needs or desires. Using AI, the app can suggest new hardware as well as how to optimise their plan based on the data it has about them.

Expect: Smart solutions that become salespeople. Being able to fulfil sales and service requests with zero human touch. Delivering a positive experience with interactions that are both timely and engaging.

4) B2B revenues soar by enabling account executives to present data-driven solutions

The B2B sector is the new golden goose for a lot of telecoms operators worldwide. 5G and automation are producing new use cases every month right now, and its scope will evolve beyond connected cars and extend to things like smart streetlights, drainage sensors, and more – driving the top and the bottom line of telecoms operators.

The challenge right now in this sector is that accounts can have so much data that it’s challenging to make sense of it all. Telco B2B and enterprise reps usually have a huge client list, and they typically only ever get to the low hanging fruit in their space. Discussions can be time consuming and difficult to arrange, with client sponsors being similarly busy and hard to get.

Imagine a world where your B2B reps are empowered with an AI-automated account review before their scheduled visits. Without a lot of digging, they can see the inactivity that can drive out cost, as well as the overload in the system that needs net new sales to alleviate it.

AI will make it possible to empower reps with a platform that integrates with BSS systems, much like the ones that retail and call centre staff have today. Need to dig into CRM data without actually opening the clunky CRM? Done. Need to call up a new sale, invoice it, and fire the integrations and deliveries? Done. All while on site with the customer, fully executed and with no back-office pass.

Expect: A new swathe of integrated solutions for B2B reps that drive data towards the optimisation of accounts and new upsell/cross-sell opportunities. A new period of growth awaits for telcos that can execute this strategy.

Get Integrated Now

Looking at all four predictions, there is one common denominator that you can put into action now to prepare – integrations.

Most telcos have some form of legacy systems in their tech stacks. Be that a 20-year-old POS system with multiple swivels, or an outdated billing stack with customers across different lines of business in different systems.

Every telco struggles to get the balance between buy / create / build. Regardless, the world of Open Digital Architecture (ODA) and Open APIs are here, and a platform approach makes it possible to allow your systems to talk to each other and work together to achieve your end goals.

Wrap Up

AI is going to bring unprecedented growth opportunities for all sorts of industries and businesses who are quick to capitalise. I’ve only scratched the surface in this thought piece.

For AI to really have the transformative effect you are going to need, you must prepare now by ensuring your systems are connected and can talk to each other today.

STOP THE SWIVEL.

SACK THE SILO.

These things are possible right now and will set you up for a golden period of AI driven growth if you do it right.

How do you think AI will transform the telco industry? I’d love to hear your thoughts.