In-Short
- AI spending by telecom companies for network management is projected to reach $20 billion by 2028.
- Investment in AI is crucial for optimizing 5G and developing 6G networks, focusing on performance and security.
- AI orchestration will be key for telcos to efficiently manage network demands and provide superior service.
Summary of Telecom AI Investment Growth
A recent report from Juniper Research indicates that telecom companies are set to significantly increase their investment in artificial intelligence (AI) for network management. By 2028, spending is expected to surge to $20 billion, marking a 240% increase from the $6 billion estimated for 2024. This growth is attributed to the expansion of 5G networks and the development of future 6G networks.
The use of AI software is deemed essential for enhancing network performance and security, which are anticipated to account for over half of the operators’ AI spending by 2028. With the rise of smart factories, autonomous vehicles, and other high-bandwidth applications, AI orchestration becomes critical for telcos to ensure efficiency, cost reduction, and the highest quality of service.
Automating processes such as real-time network analysis and adapting to fluctuating demands can lead to lower operational costs. According to Frederick Savage, the report’s author, AI will be vital for operators to maximize the benefits of cellular networks and attract high-spending users seeking the best service conditions. Telcos that neglect AI integration may struggle to meet customer expectations for performance and security.
Further Information and Image Credits
For a more detailed exploration of the report, readers can access the full copy, which is behind a paywall, here.
Image credit goes to Larisa Birta, whose photograph can be found on Unsplash.
For more in-depth insights, visit the original source.
