Drive to Reimagine

7 powerful ways AI is revolutionizing the telecom sector

Jeremy DSouza
last edited on
May 25, 2023
3-4 mins

Table of contents

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AI revolutionizing telecom industry

Want to increase customer retention, grow your market share, and fix issues before they even arise? AI might be exactly what you need to take your telecom company to a whole new level.

Why does the telecom industry need AI?

AI is continuously transforming the face of telecom. Your offerings are continuously improving. But, how are you keeping your customers updated about them?

You need to adopt AI, not only to engage your customers in a better manner, but also to make sure that their experience is seamless. 

You can use artificial intelligence to make sure that your customers have little to no issues with your service. AI can even help you avoid crashes and reduce downtime, giving your customers a great experience. 

How can AI improve the telecom industry?

  • Churn prediction
  • Customer support
  • Customer sentiment analysis
  • Predictive Maintenance
  • Upselling
  • Fraud Detection
  • Network optimization

Churn prediction 

Telecom operators lose customers for a number of reasons. Everything from new competitors to substandard service can be a factor driving churn. And yes, they know this. But, it’s impossible to manually figure out each customer’s reasons for leaving them.

Thanks to their lack of knowledge, they try retaining customers by sending all of them a single, generic offer. A customer could be leaving due to horrible customer service, but the company would send her an offer for a discount.

Artificial Intelligence and machine learning can crunch through the immense amounts of data available and find the exact reasons for which each customer is leaving.

Predictive analytics can use this data to predict when and why customers will leave. Now the telecom company can get in touch with the customers, address the issues relevant to them and increase retention rates.

Customer support

Nobody wants to wait for 11 minutes to get on a call with a customer service executive. We want to get our issues resolved as quickly as possible and then get on with our day.

An intelligent chatbot can serve customers and solve their issues without making them wait to get in contact with a human. It’s quick, it’s easy, it’s convenient and the customers love it.

After Vodafone introduced its chatbot, TOBi, it’s customer satisfaction scores went up by 68%. 

Customer sentiment analysis

The telecom industry is constantly changing. With new products, plans and competitors constantly coming up, customers have a lot of choices. Telecom companies need to know what the customers think about their offerings.

AI can run through conversational history to see how customers tend to react to specific offerings. Telecom Chatbots are now intelligent enough to understand customers’ emotions and gauge their affinity towards a new product.

Predictive maintenance

With remote working and video conferencing becoming the new normal, telecom companies are under immense pressure to make sure that they’re up and running.

As a telecom operator, you can use predictive analytics to dig through historical data, observe patterns, and predict when your systems are going to fail. 

Now, you can proactively fix them, avoid inconveniencing your customers and cause them to increase their faith in your service.


Telecom companies have been calling their customers up for years to upsell their services. But, as amazing as the new service may be, customers don’t want their day to be interrupted by a phone call. That can be terribly frustrating. 

It would be easier to reach them over a chatbot. Since this does not involve them talking, and reading a message takes much less time than listen to an agent pitch a new product, they’ll be more open to a message.

Additionally, you can use the chatbot and the analytics to send personalized offers that an individual buyer would actually be interested in.

Fraud detection

The telecom sector is prone to cases of fake profiles, theft, cloning, behavioral fraud, and illegal access and authentication. Human analysts just can’t identify such behavior fast enough.

AI and machine learning algorithms can crunch data and define the characteristics of normal activity. Now, they can easily identify anomalies and report them in real-time.

Network optimization

With AI, you can build self-optimizing networks (SONs). Now, you can provide consistent service, based on the current needs. AI can help the network self-analyze the traffic, predict anomalies, and fix issues before they ever arise.

Network optimization and predictive maintenance will help customers get a smoother experience and differentiate your company from the competition that’s plagued by crashes and downtime.

Bringing it together

As a telecom operator, you’ve got a lot to gain by incorporating artificial intelligence into your systems and processes. You can use AI to engage with your customers in a manner that they actually want you to and even to create smooth and hassle-free experiences for them.

We’ll soon have another article diving deep into the uses of chatbots for telecom companies. Until then, start adopting AI with Engati’s chatbot solutions and register yourself with us right now.

Jeremy DSouza

Jeremy is a marketer at Engati with an interest in marketing psychology and consumer neuroscience. Over the last year he has interviewed many of the world's brightest CX, AI, Marketing, and Tech thought leaders for Engati CX.

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