AI in the Telecommunication Market is Expected to Reach US$13.4 Billion by 2026
The global AI In the telecommunication market is projected to reach US$13.4 Billion at a CAGR of 49.8%
The global AI In telecommunication market size is projected to reach US$13.4 billion by 2026, from US$773 million in 2019, at a CAGR of 49.8% during 2021-2026. Major factors driving the growth of AI in the telecommunication market size are, increasing adoption of AI for various applications in the telecommunication industry and the utilization of AI-enabled smartphones.
Telecommunications is one of the fastest-growing industries that use AI in many aspects of their business, including improving customer experience and network reliability. Telecom companies use AI primarily for customer service applications. For instance, the use of chatbots and virtual assistants to address a massive number of support requests for installation, maintenance, and troubleshooting. Also, virtual assistants scale and automate responses to support claims, which improves customer experience and cuts business expenses. For instance, Vodafone Ltd. experienced about 68% improvement in customer experience after introducing its chatbot, called TOBi, for handling customer queries.
Artificial intelligence enables the telecom industry to extract insights from their vast data sets and makes it easier to manage the daily business and resolve issues more efficiently and also provide improved customer service and satisfaction. Artificial intelligence is an advanced technology that can make decisions like human intelligence. This technology focuses on creating an intelligent machine with the advancement in features like speech recognition, visual recognition, image recognition, and translation between languages that are responsible for propelling market growth. Technology also has the potential to change the functioning and operation of various industrial sectors particularly in telecommunication. In telecommunication, it has a wide scope for applications in customer service or network performance.
The rising number of AI-enabled smartphones with several features such as image recognition, robust security, voice recognition and many as compared to traditional phones is boosting the growth of AL in the telecommunication market. Furthermore, to cater to complex processes or telecom services, AI provides a simpler and easier interface in telecommunication. Apart from all this AI helps to improve the efficiency of telecommunication networks, as, with the help of AI and machine learning, telecommunication networks can act autonomously and make decisions to reduce network congestion which is not possible with conventional telecommunication.