AI offers growth potential for telecommunications despite skill shortages

Telecommunications executives anticipate that artificial intelligence will significantly enhance operational efficiency and serve as a primary driver for growth. According to the EY-Parthenon ‘Telco of Tomorrow’ study, 92% of surveyed leaders identify customer service and problem-solving as the most critical application areas for AI. The technology also offers potential for network optimization, expanded service portfolios, and personalized customer solutions.

However, several obstacles hinder the successful implementation of these technologies. Key challenges include budgetary constraints, a lack of clear strategic direction, and a significant shortage of specialized expertise. Mihály Zala, a partner at EY in IT and technology consulting, noted that AI alone does not guarantee improved business results; success requires clear business objectives, transformed operating models, and proper employee training.

Furthermore, the transition necessitates a workforce evolution. More than two-thirds of executives expect their colleagues to require new skills or transition into different roles. Despite these opportunities, less than one-third of respondents believe the telecommunications industry will be among the most attractive sectors for job seekers in five years.