According to a new report from Juniper Research, telecom companies are projected to increase their spending on AI for automating network management to $20 billion by 2028. This represents a significant 240 percent rise from the estimated spending levels in 2024, which stood at $6 billion.
The report suggests that the expected growth in investment is crucial as telcos expand their 5G networks globally and work on developing future 6G networks. AI software will play a key role in optimizing network performance and security, with these two areas expected to make up over 50 percent of operator spending on AI by 2028.
As businesses increasingly rely on cellular connectivity for applications such as smart factories and self-driving vehicles, the report emphasizes the importance of AI orchestration for telcos to enhance efficiency, reduce costs, and deliver high-quality service.
Automating tasks like real-time network analysis and quick adjustments to changing demands can help minimize expenses associated with network operations and provisioning.
Frederick Savage, the author of the report, stated, “As operators compete based on the quality of their networks, AI will be crucial in maximizing the value of using a cellular network for connectivity. High-spending users will be drawn to networks that offer the best service conditions.”
Telcos that do not incorporate AI may find it challenging to meet customer expectations for performance and security.
You can access the full report here (paywall)
(Photo by Larisa Birta on Unsplash)
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