Telecommunications companies must prioritize speed and adaptability to stay competitive
In the ever-evolving landscape of technology, the telecom industry is undergoing a significant transformation. Traditional telco services are being reinvented as telecom operators increasingly adopt Artificial Intelligence (AI) and network automation.
This shift is reflected in the growing demand for AI-driven network traffic, which is expected to account for about one-third of global network traffic in 2025, reaching 10 zettabytes by year-end[1]. Telecom operators are moving beyond their traditional connectivity roles, evolving into AI infrastructure providers, offering AI-enabled hardware, platforms, and hosting AI data centers.
This expansion into AI infrastructure is proving to be a lucrative venture for telecoms. In 2025, they earned around $4 billion in AI-related B2B revenues, with a projected compound annual growth rate of 65% through 2030[1]. This indicates a rapidly expanding role for telecoms as integral players in the global AI economy.
Key AI-driven applications in telecom include network planning and optimization, network security, customer experience enhancement, predictive maintenance, and network slicing[2]. Industry collaboration efforts, such as the AI-RAN Alliance launched in 2024, focus on merging AI with radio access network technologies to push the boundaries of cellular network capabilities[2].
However, challenges remain, including scaling AI projects effectively across complex telecom architectures and overcoming the tech talent gap to fully realize AI’s benefits[3][4]. Despite increasing AI investments, many operators struggle to scale AI initiatives due to system complexity and data infrastructure limitations[3][4].
Telecom providers are also positioned to lead in deploying sovereign AI clouds, hosting secure and compliant AI services for governments and enterprises, extending their value beyond connectivity into critical AI infrastructure provision[3].
The latest wave of services related to AI, edge intelligence, and richer media gives telcos an opportunity to reinvent themselves beyond the subscription model. Key industry events, such as DTW Ignite in Copenhagen, are providing exclusive previews and insights into this exciting future[5].
Industry experts like Guy Matthews, Patrick Kelly, Stewart Baines, Haifa El Ashkar, and George Glass are exploring the implications of this shift in various aspects, from the position of traditional telcos in a Network-as-a-Service (NaaS) future, to the telco agility era, and the reshaping of the telco value chain[6].
Analysts such as Agile Telco, Beecham Research, and Nokia's Kal De are providing in-depth content, interviews, technology deep dives, and explanations of telecoms industry trends[7]. The AI-driven, autonomous, and self-healing networks of the future are being discussed in interviews with key participants in a Moonshot Catalyst[8].
In conclusion, AI adoption and network automation in telecom are actively driving the reinvention of telco services, enabling advanced, intelligent network management and fostering new AI-enabled revenue streams. However, operators must overcome the challenges of scaling AI initiatives and modernizing infrastructure to fully realize the potential of this transformation.
[1] Transforma Insights Report [2] AI-RAN Alliance [3] Telcos and AI Infrastructure, Agile Telco [4] Telcos and AI Infrastructure, Beecham Research [5] Agile Telco Events Diary [6] Various articles by industry experts [7] Agile Telco, Beecham Research, Nokia [8] Moonshot Catalyst for AI-driven, autonomous, and self-healing networks, Agile Telco
Telecom operators are increasingly adopting technology such as Artificial Intelligence (AI) and network automation, leading to the growth of AI-driven network traffic and a shift in their roles from traditional connectivity providers to AI infrastructure providers.In 2025, the telecom industry earned around $4 billion in AI-related B2B revenues, with a projected compound annual growth rate of 65% through 2030, indicating a rapidly expanding role for telecoms as integral players in the global AI economy.
