Tractica: Telecom investment in AI services to reach $36.7B by 2025

Tuesday May 1, 2018 0 comments Tags: Boulder, Tractica, artificial intelligence, Mark Beccue

BOULDER -- Global telecommunications industry investment in AI software, hardware and services will reach $36.7 billion annually by 2025, according to a new report from Tractica.Tractica_logoUSE

The telecommunication service provider market has historically been a capital-intensive industry with high fixed costs, which has put pressure on network operators to control their operating expenses, particularly human capital.

Tractica said this tension surrounding profitability is intensifying. Many network operators crossed the point where revenue-per-bit is lower than cost-per-bit in 2017. Telecom operators are threatened by fast and highly efficient web-scale companies and are straining under the challenge of digital transformation.

On top of all that, telecom operators must solve how to profitably manage and operate the dizzyingly complex next-generation 5G/Internet of Things (IoT) networks.

According to Tractica, these market conditions and economic pressures will drive significant demand among telecom network operators for artificial intelligence (AI)-driven automation solutions in the years ahead.

The leading use case for telecom AI deployments will be network operations monitoring and management, representing 61% of the sector’s AI spending between 2016 and 2025.

Other key AI applications will include virtual assistants for customer service and marketing, intelligent customer relationship management (CRM) systems, and cybersecurity, among others.

“The telecom industry is ripe for AI-driven solutions, with their promise of lowering costs and boosting efficiencies through automation,” said Mark Beccue, Tractica principal analyst.

“Many telecom operators have begun to experiment and deploy AI-driven solutions in both customer-facing and internal organizations.”

Tractica’s report, “Artificial Intelligence for Telecommunications Applications”, examines the market and technology issues surrounding telecom AI use cases. The technologies covered include machine learning, deep learning, natural language processing, and machine reasoning.

The report presents profiles for key industry players throughout the ecosystem. It also includes global software, hardware, and services market forecasts for telecom AI, segmented by region and use case, covering the period from 2016 through 2025.

An Executive Summary of the report is available for free download on Tractica’s website.