Harvard Business Review: The Gen AI Imperative for Telcos

There is considerable expectation surrounding how generative AI (Gen AI) will substantially transform businesses and create business value. For the UK’s highly competitive and capital-intensive telecommunications sector, it is more than just another technological evolution, it’s a strategic inflexion point. A recent global pulse survey from Harvard Business Review Analytic Services, titled Realising the Generative AI Opportunity: Embracing Change to Create Business Value, reveals a stark reality.

The survey, sponsored by AWS, addresses that the failure to embrace Gen AI is not an option for organisations that want to remain relevant. For telcos, who are constantly battling for efficiency, customer loyalty and market share, the insights from this report serve as both a guide and a warning.

A ticking clock: The urgency of adoption

The pressure to act is immense. A vast majority of business leaders, 83% of survey respondents, agree that if businesses in their industry don’t use Gen AI, they will get left behind. In the world of telecommunications, where differentiation is key, falling behind on such a transformative technology could be catastrophic. 

The sentiment is echoed by Abid Rahman, Senior VP  of innovation at Eversana, who states: “Gen AI is not optional. Every industry and every company should be looking at Gen AI. If they don’t, they’re going to fall behind. It’s really as simple as that.”

Despite the recognised urgency, there is a clear readiness gap. While 60% of respondents believe Gen AI is a priority for their organisation, fewer (48%) say their organisation is ready to adopt it.

The disparity is likely felt acutely within large telcos, which often grapple with complex legacy systems, regulatory hurdles and entrenched operational processes. Closing the gap between ambition and preparedness is the first critical step on the Gen AI journey.

Overcoming the hurdles: From risk to roadmap

The path to scaled adoption is not without its obstacles. The survey found that concerns about potential risks, such as ethical, legal and cybersecurity impacts, are the most prevalent barrier, cited by 56% of respondents.

For a telco, the risks are magnified. They are custodians of critical national infrastructure and vast amounts of sensitive customer data. An improperly governed Gen AI model could pose significant security threats or violate stringent data privacy regulations.

However, risk should not lead to paralysis. As Edoardo Conte, Chief Technology Officer of Restworld, cautions, poor decision-making is the real danger. “It’s only risky if you don’t understand it," he says.

"The ecosystem is evolving and changing very rapidly and if you rush in on some solution which is not complete or not a good fit for you, it won’t bring all the value you expect.”

The key, then, is a structured and informed approach. It begins with tackling the other significant barriers identified in the survey: the lack of a clear implementation roadmap (50%) and the absence of organisational guidelines (46%).

Forward-thinking organisations are already addressing it by improving their data and technology infrastructure and, crucially, developing robust guidance and governance around GenAI use, the two most popular preparatory efforts, each cited by 53% of respondents.

Unlocking value: The tangible benefits for telcos

While the challenges are significant, the potential rewards are transformative. When asked what they hope to achieve, business leaders overwhelmingly pointed towards greater organisational productivity (63%) and greater employee efficiency (63%).

For telcos, it translates into direct operational benefits: using Gen AI to predict network faults, automate root cause analysis to reduce downtime and optimise network traffic for better performance.

Beyond network efficiency, Gen AI promises to transform the customer experience, a key goal for 45% of organisations.

It could involve creating hyper-personalised service bundles, deploying intelligent chatbots that can resolve complex billing queries without human intervention, or providing customer service agents with real-time, AI-powered insights to resolve issues on the first call. The potential for cost savings (a goal of 44% ) is substantial.

Edoardo’s experience at Restworld provides a compelling parallel for a telco’s contact centre operations.

“We’ve lightened the load for our recruiters, saving them from having to conduct between 10,000 and 12,000 conversations a month,” he says. “We’re still assessing the numbers, but it could come to cost savings of around 20%.”

From superpower to strategy

The message from the HBR report is clear. Gen AI is not just another piece of software implementation; it’s a fundamental shift in capability. As Abid puts it: “Gen AI is a tool. In fact, it’s a superpower.”

It empowers employees and organisations to tackle complex problems with unprecedented speed and intelligence.

However, the ultimate challenge for telco leaders is to think beyond simple efficiency gains. The final insight is a call to rethink the very nature of work.

“Does it really make sense to continue to do the same type of work in the same way as before?” Abid asks.

“Organisations need to assess what they can change in terms of processes and the bigger picture if they want to fully reap the benefits of Gen AI.”