As AI reshapes the consumer technology landscape, telcos are seizing the opportunity to move beyond traditional connectivity and integrate more deeply into everyday life. While consumer innovation was somewhat overlooked at the Mobile World Congress (MWC) 2025, AI-powered solutions are pushing to make their mark. From smart homes and digital assistants to cybersecurity tools and service robots, momentum is clearly building. The latest update to STL Partners’ Consumer innovation tracker captures these shifts, showcasing how operators are leveraging AI to deliver more personalised experiences for consumers.
Consumer services at MWC 2025
This year’s congress may have been dominated by network transformation and enterprise-focused announcements, with consumer innovation overlooked – however, it wasn’t completely absent. Amidst the buzz around 5G core upgrades and AI-enabled operations, a quiet yet clear trend emerged: telcos and tech players are accelerating their efforts to bring AI-powered services into the hands (and homes) of everyday users.
STL Partners was on the ground in Barcelona tracking how the consumer landscape is evolving – from smart home automation to digital assistants and AI-enhanced security. In the figure below, you can find the main trends we identified at this year’s MWC. These themes also served as the basis for 17 of the additions featured in our latest tracker update.
Figure1: Which consumer areas were showcased?
Seven key learnings from our analysis of consumer innovation at MWC 2025
1. AI is becoming the engine of everyday consumer tech
AI was no longer confined to backend systems and enterprise applications – it is now powering a wave of services aimed at simplifying, personalising and enhancing daily life. From real-time translation and contextual search to hands-free task automation, many devices and platforms demonstrated how AI can serve not simply as a reactive tool – but as a proactive companion..
2. AI-driven cybersecurity is going mainstream
As AI threats such as deepfakes and voice phishing grow, telcos are stepping up their efforts with consumer-facing cybersecurity solutions. Real-time fraud detection tools and voice authentication systems – such as LG Uplus’s Anti-DeepVoice – show that protecting users in an AI-powered world is quickly becoming a priority (and a potential new service category). We will be exploring this realm further in upcoming research, so watch this space.
3. Smart homes are expanding into smart living
What was once a collection of niche solutions – such as baby monitors and pet cameras – is now evolving into a unified, AI-powered smart home ecosystem. MWC demos showed how a single setup can provide arrival notifications, soothe babies, monitor pets, adjust room temperature, detect user falls, track health vitals, manage home energy usage and support remote elderly care. These features aim to bring convenience, safety and personalisation into everyday life. Additionally, AI continues to expand beyond the home, increasingly being integrated into solutions that support consumers in their daily lives – whether for travel planning, recreation, education or fitness tracking. This signals a broader trend in which AI becomes a seamless part of consumers’ lives – at home, at work and everywhere in between.
4. New consumer devices are here – but not yet revolutionary
A variety of new AI-powered gadgets were on show – from foldables to wearable health monitors. While some featured exciting tech, most felt like incremental steps rather than leaps forward. There is clearly more work to do in bridging novelty with real value, but the hardware innovation pipeline is active and evolving. What is missing for the moment is consumer enthusiasm in spending more money on new devices.
5. Visual AI features are drawing users in
AI photo tools, including generative avatars and instant image enhancements, were widely showcased on the show floor, particularly by Asian operators. While some may dismiss them as gimmicks, they are proving effective at capturing attention and onboarding users into wider AI ecosystems. Fun and functionality of the camera have always been allies in the race for consumer engagement.
6. Robots are awkward now – but they won’t be forever
Consumer robotics is progressing – slowly but surely. Prototypes such as China Mobile’s service robots and robotic pets may seem rudimentary today, but they hint at a future where household robots offer companionship, task automation and even safety monitoring. As form factors improve, so will adoption and expectations.
7. XR remains a strategic focus for some – but focus is shifting
Extended reality (XR) continues to be a priority for companies such as Samsung, Meta and Google, with investment in headsets, platforms and immersive applications. However, not all players are doubling down on such developments. SK Telecom, for instance, has shut down its metaverse platform to focus on expanding its AI portfolio instead. This suggests a shift in priorities for some telcos and tech providers, as they reassess where AI can deliver the most value.
So, what does this mean for telcos?
Consumer demand for AI is strong and growing – and telcos are responding. While many still focus on enterprise transformation, the wisest players are also investing in consumer innovation. Services such as real-time AI monitoring, digital companions and smart living platforms offer not only differentiation but new revenue streams as well.
Our Consumer innovation tracker is a valuable resource for telcos seeking to diversify their offerings and generate revenue beyond core connectivity. Featuring a carefully curated global collection of consumer services launched by operators, it provides insights into innovation and growth opportunities. Updated monthly, the tracker showcases leading telcos and notable advancements in consumer services. It highlights innovations across various domains, including service design, business models, partnerships and entirely novel approaches.
Find more details of the tracker here.
Subscribers to STL Partners’ Consumer research stream can access the full database and the interactive tool here.
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