AI is poised to dramatically reshape the landscape for Communications Service Providers (CSPs). It will redefine service experiences and will elevate the nature of customer engagement. However, AI is not cheap. Plus, it is likely that there will be a wave of new regulations that CSPs must adhere to. Read on to learn how AI will reshape customer care in the telco world, and how CSPs can manage costs and avoid unexpected regulatory changes.
Chatbots and co-pilots are no longer a “nice-to-have”
Most telco providers have already deployed some form of AI-assisted chatbot or co-pilot to support customer experience and engagement, and as AI and natural language capabilities have improved, subscribers have become more comfortable engaging with these applications. In fact, many customers now expect basic issues such as billing queries or the activation of new services to be resolved quickly without having to wait for a human agent. This means that chatbots and co-pilots are no longer a “nice to have”; they are an essential part of the CSP customer care toolbox.
Agentic AI architectures will develop to drive proactive engagement
Until now, AI’s role in customer care has primarily been to manage reactive inquiries. This is poised to change with the advent of agentic AI architectures. These architectures equip complex CSP systems landscapes with the capability for individual AI-enhanced systems to communicate proactively, without needing human direction. Essentially, this means AI systems can interact among themselves to deliver a proactive, unified customer experience triggered by various system and service alerts. Ultimately, agentic AI architectures will enable CSPs to anticipate and address inquiries, resolve issues before subscribers are even aware they exist, and deliver highly personalized customer interactions—all autonomously.
But AI is expensive
Of course, the vast potential of AI comes with significant financial costs. For instance, a CSP serving millions of subscribers will see expenses soar as AI-powered chatbots, services, and architectures handle thousands of interactions each day. Therefore, CSPs must vigilantly monitor their AI-related expenses across ecosystems and business processes. The economic justification for adopting AI must account for all direct and indirect costs throughout the lifecycle of AI systems, from acquisition to maintenance. Successfully integrating AI should identify substantial cost reductions, enhanced customer experiences, or strategic changes in product pricing, all of which are essential for renewing CSP business viability.
Regulatory changes
In addition to managing costs, it is likely that CSPs will also have to grapple with a wave of new AI-related regulations. Governments and regulatory bodies operate at a much slower pace than technological innovators, but some are now starting to catch up. The first AI regulatory shoe fell in 2024 with the passage of the EU AI Act in August, which created guidelines for the responsible and ethical development of AI to be adhered to by the 27 EU member states. Given Europe’s tendency to be out front in establishing regulations, as evidenced by GDPR, we can assume that similar rules, statutes, and ordinances will be introduced in other countries and regions of the world. CSPs should keep abreast of regulations under consideration and prepare accordingly.
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