**London**: The telecom sector is rapidly adopting AI, with projected integration rates set to soar to 90% by 2027. Microsoft’s innovations, showcased at MWC 2025, highlight the pivotal role of AI in enhancing customer experiences and driving operational efficiency across the industry.
The telecommunications sector is witnessing a transformative shift as it increasingly embraces artificial intelligence (AI), particularly generative and agentic AI, to propel automation, enhance customer experiences, and facilitate data-driven decision-making. Recent findings from a white paper by IDC indicate that companies in the telecom and media sectors are achieving nearly four times the return on investment for every dollar invested in AI. Projections suggest that by 2027, around 90% of telecommunications providers will integrate generative AI to elevate customer interactions, a substantial increase from the current 62%.
According to Microsoft, 96% of its tier-1 telecom clients are already employing its AI solutions. Microsoft reports that these companies are harnessing AI’s capabilities to innovate customer experiences, modernise their networks, automate operations, and foster overall growth. Ahead of the upcoming Mobile World Congress 2025 (MWC), Microsoft is unveiling new features and demonstrating customer engagement in adopting its cloud and AI technologies, which are significantly reshaping the telecommunications landscape.
As the event approaches, Microsoft is inviting stakeholders to explore these advancements. Attendees will see live demonstrations, participate in insightful sessions, and engage with experts to understand more about how Microsoft AI is revolutionising the telecom industry.
A key component of this transformation is Microsoft Fabric, an end-to-end data platform designed to facilitate AI evolution within telecommunications. The platform aims to unify diverse data sources—from network performance to customer interactions—enabling operators to analyse and utilise their data more effectively. Microsoft has introduced a Telco industry data model within Fabric, which encompasses essential features such as native integration and pre-built telecom-specific schemas to drive operational efficiency. More than half of Microsoft’s telecommunications clients are already using Fabric for real-time business insights, optimising their operations and enhancing service offerings.
Balakrishna D.R., Executive Vice President at Infosys Limited, remarked, “Microsoft Fabric, powered by Telco data model and AI capabilities, has revolutionised our solutions by providing real-time insights throughout the customer journey, potentially increasing operational efficiency by 40%.” The Telco industry data model is set to be available from early April 2025.
Globally, telecom providers are leveraging the combination of cloud and AI to innovate their service offerings. Recently, Microsoft has announced collaborations with major companies, including KT Corporation, Lumen, and Vodafone, to redefine customer interactions and modernise network operations. Spark, New Zealand’s leading telecom company, is embarking on one of the largest Microsoft public cloud partnerships in the country, which includes migrating workloads to Microsoft Azure and implementing Microsoft 365 Copilot.
Telecoms are also focusing on enhancing customer engagement through AI. Data from the IDC report suggests that 92% of organisations are utilising AI for marketing, while 77% are employing it for customer service. This trend is exemplified by Telkomsel’s deployment of its AI-driven virtual assistant, Veronika, which has seen an increase in self-service interactions and a reduction in escalated issues.
At the same time, companies like Lumen Technologies are advancing their workforce capabilities through AI. Ryan Asdourian, Executive Vice President at Lumen, asserted, “Lumen is building the trusted network for AI,” emphasising the importance of Microsoft’s AI tools in navigating business transformations.
It is noteworthy that a significant 63% of telecommunications and media firms are already monetising AI for revenue enhancement. One notable collaboration involves AT&T, which is integrating Microsoft’s AI capabilities into its retail crime solutions, a strategy aimed at addressing the USD112 billion retail shrinkage challenge.
With the fast-paced developments in AI, Microsoft plans to showcase these advancements at MWC 2025. Attendees can look forward to discussions and demonstrations highlighting the latest innovations, further cementing Microsoft’s role as a key player in driving the telecommunications industry’s evolution.
Source: Noah Wire Services
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