Telco generative AI implementations quadruple since May, finds STL Partners
3 min read- Generative AI implementations by telcos increased fourfold between May and August, according to STL Partners’ latest research
- The company has tracked more than 200 implementations of the technology worldwide, with actual launches significantly rising
- Telcos show increased focus on developments utilising multiple large language models and proprietary models
STL Partners’ latest quarterly update to the ‘Telco generative AI adoption tracker’ provides an overview of the current level of progress in GenAI implementations made by telcos, the key capabilities of the technology applicable to the sector, as well as a comprehensive list of the use cases with highest potential of bringing benefits for operators and their customers
LONDON – 28 AUGUST 2024 – Generative AI (GenAI) implementations by telecom network operators have almost quadrupled between May and August 2024, while telcos increasingly eye monetisation opportunities unleashed by the technology’s capabilities, according to the latest update to the ‘Telco generative AI adoption tracker’ compiled by STL Partners.
Based on publicly available data on trials and deployments announced in the three-month period, the research and consulting company has tracked a total of 201 records of GenAI implementations by telcos worldwide, up from 56 in May. “Telcos have shifted a gear up on the adoption of GenAI,” comments Kerina Naran, analyst at STL Partners, adding that operators that have unveiled actual implementations nearly doubled in the period to 54 on a global scale.
“This momentum underscores the sector’s commitment to harnessing the transformative power of GenAI, as telcos aim to optimise operations, enhance customer experiences and tap into new revenue streams,” explains the analyst who is a co-author of the tracker update.
Notably, STL Partners has discovered that telcos are swiftly moving beyond announcements to actual launches of GenAI use cases, with half of recorded implementations by August 2024 being of launches (up from 21% in May when announcements dominated).
According to the tracker’s latest update, implementations that can utilise multiple large language models (LLMs) are growing fast, as is the number of telcos working on their own LLMs.
Another highlight suggests that there is significant activity by telcos to seek monetisation opportunities from their GenAI-related efforts. “A staggering 45% of the implementations we’ve recorded seek to capture the rising interest of the enterprise sector in AI by offering AI-as-a-service,” notes Naran. “Larger enterprises may have figured out their AI strategies, but many small and medium businesses don’t even know where to start, and a number of telcos have spotted the opportunity to help them.”
STL Partners’ tracker update further outlines the dominant business areas where GenAI is being adopted by telcos, and explores why, to a large extent, the industry is still in its early days for the technology. Find out more by downloading the summary here.
STL Partners is a leading, global research and consulting firm that focuses on the telecoms and technology industries. We enable telcos, tech companies, and their partners to make the world run better. More information on our research and services is available at www.stlpartners.com
