In this report, we update our model of the financial value of adding AI, analytics and automation (A3) into a telco’s processes. This report focuses on the impact A3 can have in the BSS, channels, marketing and sales, and has a particular focus on the impact of new GenAI capabilities in these areas.

How AI, analytics and automation (A3) can unlock much-needed value in the telco industry

This report is the second section of the 2024 update to STL Partners’ report, AI & automation for telcos: Mapping the financial value, published in 2022, which estimated the economic value (revenue uplift, capex and opex decrease) of integrating AI, automation and analytics (A3) into telco operations. The first part of the 2024 update was published in March and covered the use of A3 in the network and operations support systems (OSS). This report covers business support systems (BSS), customer channels, sales and marketing.

We categorise the value of A3 in telecom across operational areas and the type and purpose of A3 technology. The diagram on the following slide summarises the value of A3 across the following six types of technology:

1. Making sense of complex data: Analytics and machine learning (ML) are used to understand large, mostly structured data sets, looking for patterns to diagnose problems and predict/prescribe resolutions.
2. Automating processes: Intelligent automation and robotic process automation (RPA) to enable decision-making, orchestration and task completion within telco processes.
3. Personalising customer interactions: Analytics and machine learning are used to understand customer data, create segmentation, identify triggers and prescribe actions to be taken.
4. Supporting business planning: Analytics and ML are used in forecasting and optimisation exercises.
5. Augmenting human capabilities: AI solutions such as natural language processing (NLP) and text analytics are used to understand human intent or sentiment to support interactions between customers or employees and
6. telco systems.
7. Frontier AI solutions: This category refers to several AI and GenAI solutions that perform specific functions and are at the leading edge of AI development in telecom.

For further detail on this categorisation methodology, see STL Partners report The telco A3 application map.

Overview of the financial value of A3

If you are not a subscriber, enter your details below to download an extract of the report

Table of contents

• Executive summary
• Overview of the financial value of AI, automation and analytics in BSS, channels, sales and marketing
• A3 in BSS
• A3 in telco chanels
• Digital channels
• A3 in marketing and sales
• Conclusion
• Appendix

Related research

• The value of analytics, automation and AI for telcos Part 1: The telco A3 application map
• A3 for telcos: Mapping the financial value
• AI & automation for telcos: Mapping the financial value
• Finding value from AI, analytics and automation (A3) in the telco network

Charlotte Patrick

Charlotte Patrick

Associate Senior Analyst

Charlotte has 27 years of professional experience in strategy, marketing and finance. Most recently in the largest global technology analyst firm and previously two of the worlds largest global telecommunications companies. She is an electronics graduate and MBA with excellent business analysis, commercial and strategic planning skills.