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AI set to boost telecom market to $11.29bn by 2030
Wed, 3rd Jan 2024

The Global AI in Telecommunication Market is set to experience significant growth in the coming years, predicted to skyrocket to USD $11.29 billion by 2030, according to a recent report by Research and Markets. This marks an impressive Compound Annual Growth Rate (CAGR) of 28.2% from 2023 to 2030. This expanding market signals a transformative period for Communication Service Providers (CSPs) and technology adopters.

Driven by advances in technology paradigms, such as Network Function Virtualisation (NFV) and Software-Defined Wide Area Networking (SD-WAN), the telecom sector is starting to leverage the power of artificial intelligence to improve operational efficiencies and customer experiences. Artificial intelligence offers an effective means of managing the complexities inherent in modern communication networks. It is expected to present significant opportunities to boost service provision and streamline operations.

It was also reported that there has been a surge in investment towards AI applications, which are central to revolutionising how CSPs operate. Vital applications include network security, optimisation, customer analytics, virtual assistance, and self-diagnostics. The use of artificial intelligence has become integral in developing robust self-diagnostic systems, which have the potential to streamline telecommunication services significantly.

The influence of artificial intelligence in telecommunication is not just confined to current operating models. Next-generation wireless networks are set to become complex systems due to the diversity of devices, applications, and system architectures. Artificial intelligence is instrumental in managing this complexity and presents applications in monitoring, management, fraud mitigation, predictive maintenance, and cybersecurity.

According to the report, the Asia Pacific region, led by countries such as China and India, is on track to witness the fastest growth with an impressive CAGR of 32.9%. This is largely due to the rapid advancements happening within their telecommunication sectors.

Stakeholders and strategic planners within the industry can leverage this data to tap into the potential of artificial intelligence, thus maintaining competitiveness. As more CSPs adopt AI-guided strategies to enable communication automation and agility, the market is preparing for a substantial transformation that will redefine global telecommunication services.

The report also highlighted specific ways in which AI is transforming telecommunication. For instance, the growth in multimedia demands and a need for strengthened network security are leading CSPs to adopt sophisticated AI-driven strategies. AI-powered virtual assistants and analytics are enhancing customer service experiences and consequently driving business revenue growth. Further, deep packet inspection and service-aware networks are enabling CSPs to automate and augment network management and planning.