AI in Telecommunication Market Size
Global AI in Telecommunication Market reached US$ 2.63 billion in 2024 and is expected to reach US$ 35.69 billion by 2032, growing with a CAGR of 38.54% during the forecast period 2025-2032.
The demand for artificial intelligence in telecommunications is increasing since telecom businesses can quickly identify problems using AI. Telecom businesses are embracing IoT to accelerate the deployment of artificial intelligence in telecommunications. As a result, the increasing usage of AI solutions in various telecom applications drives the growth of AI in the telecommunications industry.
For instance, in June 2023, Amdocs launched Amdocs amAIz, a telco generative AI platform. This cutting-edge solution uses carrier-grade architecture and open-source technology in conjunction with substantial language AI models. Furthermore, in October 2022, Nokia launched an AI maturity evaluation tool. This tool is intended to assist communication service providers in developing and implementing effective artificial intelligence strategies. As a result, these variables will present significant profitable potential for the growth of AI in the communications business.
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AI in Telecommunication Market Scope
| Metrics | Details | |
| By Offering | Solution, Service | |
| By Deployment Type | On-Premise, Cloud-based | |
| By Technology | Machine Learning, Natural Language Processing (NLP), Data Analytics, Others | |
| By Application | Customer Analytics, Network Security, Network Optimization, Self-Diagnostics, Virtual Assistance, Others | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
AI in Telecommunication Market Dynamics
Driver - Rising Focus on Improving Customer Experience
- Telecommunications is one of the most rapidly growing sector and it employs artificial intelligence (AI) in many parts of its operations, including customer experience and network stability. Telecom businesses generally use artificial intelligence for customer service applications.
- Chatbots and virtual assistants handle a large number of installation, maintenance and troubleshooting inquiries. Virtual assistants can also scale and automate claims responses, thereby increasing customer experience and lowering business costs. For example, Vodafone Ltd. saw a 68% boost in customer experience after implementing its TOBi chatbot to handle customer inquiries.
Restraint: interoperability issues
- Interoperability difficulties have a substantial impact on market demand for AI in the telecommunications sector. The integration of AI systems into existing telecommunications infrastructure frequently presents issues in assuring seamless compatibility. Telecommunication networks are often made up of several technologies, protocols and legacy systems, making it difficult to integrate AI effectively.
AI in Telecommunication Market Segment Analysis
The global AI in Telecommunication market is segmented based on offering, deployment type, technology, application and region.
Solutions in the global market is expected to drive the market.
The solutions segment expanded from US$ 0.38 billion in 2022 to US$ 0.57 billion in 2023, owing to rising adoption in the market.
In the AI in telecommunications market, the solution category includes a collection of AI-powered solutions designed to address specific difficulties in the telecommunications sector. Trends in this field show a growing emphasis on solutions that improve network efficiency, consumer experiences and cybersecurity. For example, at Mobile World Congress Los Angeles in October 2021, IBM collaborates and expands partner partnerships to advance the company's capabilities in hybrid cloud, AI, network automation and security. These breakthroughs emphasize IBM's role in helping the telecommunications industry grow as 5G and edge computing transform how businesses and consumers connect.
AI in Telecommunication Market Geographical Share
Rapid Technological Advancements in Asia-Pacific.
Asia-Pacific recorded strong growth, increasing from US$ 0.40 billion in 2022 to US$ 0.64 billion in 2023, supported by rising investments and growing demand in emerging economies like China and India.
Asia Pacific is predicted to expand at fastest CAGR during the forecast period. This expansion is due to significant technical improvements in rising economies like China and India. For example, Huawei Technologies Co., Ltd., a global telecommunications equipment and consumer electronics company, collaborates with China Telecom Corporation Ltd., a supplier of internet access and mobile telecommunications services. This partnership will investigate radio cell capacity prediction and wireless network cell anomaly detection using the Network AI Engine (NAIE). Additionally, in February 2023, Bharti Airtel teamed with NVIDIA to build an AI solution focused at improving customer experiences for all inbound calls handled at its contact center.
Sustainability and Green Technology Analysis
The global AI in telecommunications industry is quickly evolving, driven by the demand for automation, predictive analytics and increased network efficiency. However, sustainability concerns have arisen as a result of the high energy consumption of AI-powered systems, data centers' carbon footprint and e-waste management issues. To decrease their environmental impact, telecom corporations are transitioning to data centers fueled by renewable energy. For example, Google and AT&T are building carbon-neutral AI data centers powered by wind and solar energy. Investing in renewable energy, smart AI solutions and circular economy projects allows telecom businesses to integrate technological growth with environmental responsibility.
AI in Telecommunication Market Major Global Players
The major global players in the market include AT&T, Cisco Systems, Inc., Google LLC, IBM Corporation, Infosys Limited, Intel Corporation, Microsoft, Nuance Communications, Inc., Salesforce, Inc. and ZTE Corporation.
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Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
