A new global study by the IBM Institute for Business Value, supported by GSMA Intelligence, reveals that telecommunication and communication service providers (CSPs) leveraging cloud computing and artificial intelligence (AI) experience improved network performance, cost savings, scalability, and monetization opportunities.
The study, titled “Rewiring the Telecom Mindset: How CSPs are Gaining Network Advantage with Cloud and AI,” surveyed 750 global network executives from leading telecom companies, including Bharti Airtel, Deutsche Telekom, Telstra, Verizon, and Vodafone. The findings emphasize the critical role of AI and cloud adoption in modernizing networks and maintaining a competitive edge.
Findings from the Study
- 79% of telecom executives prioritize network performance as their top concern, with network modernization as the second most important priority.
- 62% of technology innovators are using traditional AI for network planning, compared to 40% adoption among peers.
- 54% of leading CSPs integrate generative AI into network planning, double the adoption rate of their peers.
- 55% of telecom providers have experienced a network security breach in the past 12 months, yet only 42% consider network security a top challenge in the next three years.
- CSPs plan to increase investments in:
- Cloud implementation by 20%
- Traditional AI by 16%
- Generative AI by 19% over the next three years.
Transforming Telecom: The Role of Culture & Innovation
Beyond technology, the study stresses that network modernization requires a cultural shift within CSPs. To fully realize the benefits of cloud and AI, telecom providers must:
- Embrace risk-taking and bold innovation strategies.
- Foster collaboration across ecosystems to accelerate digital transformation.
- Adopt a proactive approach to AI-driven solutions and cloud-based infrastructure.
“Telecommunications companies that adopt a cloud and AI-driven approach will be better equipped to navigate the complexities of the modern network landscape and capitalize on emerging opportunities,” said Rahul Kumar, Senior Partner & VP, Global Industry Leader for Telco & Media, IBM. “By rewiring their mindset and embracing a culture of innovation, CSPs can unlock significant benefits and stay ahead of the curve.”
Peter Jarich, Head of GSMA Intelligence, added: “The study’s findings underscore the critical role that cloud and AI will play in shaping the future of telecommunications. CSPs must prioritize network modernization, enhance security, and drive innovation to remain competitive and achieve sustainable growth.”
IBM at MWC 2025: AI Takes Center Stage
IBM will showcase the latest AI and cloud innovations at MWC 2025. Attendees can engage with IBM industry experts at Hall 2 – Stand 2H20 to explore AI-driven customer engagement, operational efficiency, and network optimization.
Join IBM’s daily sessions to dive into AI use cases, network transformation strategies, and the future of telecommunications.
For more details, visit IBM at MWC 2025.
