Telco AI projects rise tenfold in a year, as focus on new products increases
3 min read- Half of GenAI projects in telcos are about building new products
- AI solutions for enterprises dominate the agenda, but consumer services are on the rise
- The number of applications of GenAI in network management is also growing
LONDON – 11 June 2025 – Telecom operators’ enthusiasm for deploying generative AI (GenAI) in their operations is showing no signs of cooling down, according to a new report by telecom and technology advisory company STL Partners. The latest quarterly update of its ‘Telco generative AI adoption tracker’ shows that by May, the number of GenAI projects had increased by 41% from the previous three-month update by February 2025 and tenfold year on year.
“Telcos remain determined to benefit from the development of GenAI”, notes Marina Koytcheva, research director at STL Partners. “They are very keen on building new products based on GenAI, to grow their revenues beyond the mature connectivity business.”
In the May edition of STL Partners’ tracker, 50% of all GenAI projects in telcos involve product creation.
The majority of the productisation efforts are focused on enterprise clients, as telcos rush to enable business customers to deploy GenAI applications in their operations. However, Koytcheva states that in recent months, “we notice operators’ desire to ride the wave of consumer appetite for GenAI as well”. Some examples include offering premium GenAI tools such as Perplexity Pro for free to broadband and mobile connectivity subscribers. In addition, there is a proliferation of examples in smart home, cybersecurity, well-being and other areas where telcos demonstrate true innovation in bringing novel services to the market.
Global implementations of GenAI in telcos, split by type
Another recent trend is telcos’ interest in the opportunity to offer AI infrastructure as a service to enterprises. Unmet local market needs and government desire for AI sovereignty drive operators’ ambitions to build AI factories. However, in a recently published note, STL Partners warns that this avenue is not suitable for all telcos: those that are considering making substantial investments need to ensure that building such infrastructure is not in pursuit of short-term opportunities but fits into their long-term strategy.
Another finding from the latest quarterly tracker is the growing rate of GenAI deployments in telco networks. Network management operations, where earlier types of AI have been used for years, have been slow to adopt the generative flavour of the technology. However, in the three months to May 2025, one in six telco GenAI implementations was in network management and optimisation. This reflects a growing supply of network management solutions with GenAI elements from key vendors, such as Nokia and Amdocs.
GenAI deployments are spreading geographically – and emerging markets are no exception from the trend, with new project announcements coming from Asia and Latin America in the examined period.
“Telcos are pressed to move quickly with GenAI not just by the relentless speed at which the technology is evolving, but also by the realisation that their competitors are adopting it rapidly”, concludes Koytcheva.
Learn more about STL Partners’ Telco generative AI adoption tracker here.
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STL Partners is a leading research and consulting company that focuses on the telecom industry and adjacent markets by helping telcos and their partners innovate, grow and stay ahead of the competition.
