AI forces telcos to rethink business models and workforce roles

Generative AI pushes personalization and job evolution.

With artificial intelligence (AI) disrupting traditional business models, industry leaders say the adoption of generative AI is no longer an option but a necessity for telcos seeking to remain competitive in the telecommunications industry.

“It’s affecting all aspects of the business model,” said Marko Cetkovic, Chief Digital Officer at M1. “It’s very important to go more towards cloud-native and digital assets, and make sure that we can also consolidate our data in the data lake.”

AI adoption is not just about improving efficiency—it’s about rethinking the role of telcos. “Many of the telcos have started by using AI for automation and essentially for efficiency,” said Abhishek Srivastava, Principal at Arthur D. Little Southeast Asia. “We see some of the advanced telcos really adopting AI for what we call the Business Revolution.”  

Telcos traditionally lagged behind in innovation, prioritising the protection of existing revenue streams, such as SMS services. Srivastava argued that AI represents a “game-changer” for the industry, offering opportunities without jeopardising current income. “AI is this unfettered opportunity, something where telcos do not risk losing their existing revenue sources but have the opportunity to go beyond,” he said.  

AI’s impact on telco manpower has sparked debate over the future of jobs. While fears of job displacement persist, both experts highlighted the potential for AI to create more meaningful roles. “There’s going to be a massive change in the type and quality of jobs,” Srivastava said.

He acknowledged the current shortage of AI talent, describing it as a “war for talent,” but predicted the emergence of creative and exciting opportunities as the industry adapts.  

Cetkovic emphasised the importance of upskilling. “We are investing a lot during this year to make sure that we have increased that knowledge,” he said, noting the need for reskilling teams to navigate the AI transformation.