Bain & Co, McKinsey & Co, AWS suggest how telcos can use and adapt Generative AI

Generative Artificial Intelligence (AI) uncertainty is especially challenging for the telecommunications industry which has a history of very slow adaptation to change and thus faces lots of pressure to adopt generative AI in their services and infrastructure.  Indeed, Deutsche Telekom stated that AI poses massive challenges for telecom industry in this IEEE Techblog post.

Consulting firm Bain & Co. highlighted that inertia in a recent report titled,Telcos, Stop Debating Generative AI and Just Get Going”  Three partners stated network operators need to act fast in order to jump on this opportunity. “Speedy action trumps perfect planning here,” Herbert Blum, Jeff Katzin and Velu Sinha wrote in the brief.  “It’s more important for telcos to quickly launch an initial set of generative AI applications that fit the company’s strategy, and do so in a responsible way – or risk missing a window of opportunity in this fast-evolving sector.”

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Telcos can pursue generative AI applications across business functions, starting with knowledge management:

 

Separately, a McKinsey & Co. report opined that AI has highlighted business leader priorities. The consulting firm cited organizations that have top executives championing an organization’s AI initiatives, including the need to fund those programs. This is counter to organizations that lack a clear directive on their AI plans, which results in wasted spending and stalled development. “Reaching this state of AI maturity is no easy task, but it is certainly within the reach of telcos,” the firm noted. “Indeed, with all the pressures they face, embracing large-scale deployment of AI and transitioning to being AI-native organizations could be key to driving growth and renewal. Telcos that are starting to recognize this is non-negotiable are scaling AI investments as the business impact generated by the technology materializes.”

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Ishwar Parulkar, chief technologist for the telco industry at AWS, touted several areas that should be of generative AI interest to telecom operators. The first few were common ones tied to improving the customer experience. This includes building on machine learning (ML) to help improve that interaction and potentially reduce customer churn.

“We have worked with some leading customers and implemented this in production where they can take customer voice calls, translate that to text, do sentiment analysis on it … and then feed that into reducing customer churn,” Parulkar said. “That goes up another notch with generative AI, where you can have chat bots and more interactive types of interfaces for customers as well as for customer care agent systems in a call. So that just goes up another notch of generative AI.”

The next step is using generative AI to help operators bolster their business operations and systems. This is for things like revenue assurance and finding revenue leakage, items that Parulkar noted were in a “more established space in terms of what machine learning can do.”

However, Parulkar said the bigger opportunity is around helping operators better design and manage network operations. This is an area that remains the most immature, but one that Parulkar is “most excited about.”  This can begin from the planning and installation phase, with an example of helping technicians when they are installing physical equipment.

“In installation of network equipment today, you have technicians who go through manuals and have procedures to install routers and base stations and connect links and fibers,” Parulkar said. “That all can be now made interactive [using] chat bot, natural language kind of framework. You can have a lot of this documentation, training data that can train foundational models that can create that type of an interface, improves productivity, makes it easier to target specific problems very quickly in terms of what you want to deploy.”

This can also help with network configuration by using large datasets to help automatically generate configurations. This could include the ability to help configure routers, VPNs and MPLS circuits to support network performance.

The final area of support could be in the running of those networks once they are deployed. Parulkar cited functions like troubleshooting failures that can be supported by a generative AI model.

“There are recipes that operators go through to troubleshoot and triage failure,” Parulkar said “A lot of times it’s trial-and-error method that can be significantly improved in a more interactive, natural language, prompt-based system that guides you through troubleshooting and operating the network.”

This model could be especially compelling for operators as they integrate more routers to support disaggregated 5G network models for mobile edge computing (MEC), private networks and the use of millimeter-wave (mmWave) spectrum bands.

Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel this week also hinted at the ability for AI to help manage spectrum resources.

“For decades we have licensed large slices of our airwaves and come up with unlicensed policies for joint use in others,” Rosenworcel said during a speech at this week’s FCC and National Science Foundation Joint Workshop. “But this scheme is not truly dynamic. And as demands on our airwaves grow – as we move from a world of mobile phones to billions of devices in the internet of things (IoT)– we can take newfound cognitive abilities and teach our wireless devices to manage transmissions on their own. Smarter radios using AI can work with each other without a central authority dictating the best of use of spectrum in every environment. If that sounds far off, it’s not. Consider that a large wireless provider’s network can generate several million performance measurements every minute. And consider the insights that machine learning can provide to better understand network usage and support greater spectrum efficiency.”

While generative AI does have potential, Parulkar also left open the door for what he termed “traditional AI” and which he described as “supervised and unsupervised learning.”

“Those techniques still work for a lot of the parts in the network and we see a combination of these two,” Parulkar said. “For example, you might use anomaly detection for getting some insights into the things to look at and then followed by a generative AI system that will then give an output in a very interactive format and we see that in some of the use cases as well. I think this is a big area for telcos to explore and we’re having active conversations with multiple telcos and network vendors.”

Parulkar’s comments come as AWS has been busy updating its generative AI platforms. One of the most recent was the launch of its $100 million Generative AI Innovation Center, which is targeted at helping guide businesses through the process of developing, building and deploying generative AI tools.

“Generative AI is one of those technological shifts that we are in the early stages of that will impact all organizations across the globe in some form of fashion,” Sri Elaprolu, senior leader of generative AI at AWS, told SDxCentral. “We have the goal of helping as many customers as we can, and as we need to, in accelerating their journey with generative AI.”

References:

https://www.sdxcentral.com/articles/analysis/aws-sees-a-role-for-generative-ai-in-the-telecom-space/2023/07/

https://www.bain.com/insights/telcos-stop-debating-generative-ai-and-just-get-going/

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-ai-native-telco-radical-transformation-to-thrive-in-turbulent-times

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One thought on “Bain & Co, McKinsey & Co, AWS suggest how telcos can use and adapt Generative AI

  1. The three industrial revolutions in modern history were caused by transformational inventions: the steam engine, electricity, and computers. Will artificial intelligence (AI) be next?
    Jared Woodard and the Bank of America Research Investment Committee remind us that productivity booms are hard to measure, even harder to predict, and almost impossible to create. Yet many believe AI will be marginal, like most tech innovations (i.e. 3D printers & VR headsets),

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