Artificial Intelligence: Empowering Firms Like Never Before—Global Telecom Sector (Part 5 of 5)

In this commentary, DBRS Morningstar explores how telecommunication companies are leveraging artificial intelligence (AI) to improve network planning, management, and customer experience and how AI adoption may impact their credit ratings.

Key highlights include:
-- Telcos are using AI to plan and manage their networks, improve customer experience, and reduce customer churn.
-- Increasingly complex network requirements and sharpening operating challenges are further driving AI adoption.
-- For telcos, AI use should help support operating and financial metrics. However, underinvestment in AI may lead to weaker and more expensive operations and in turn could weigh on long term credit profiles.

“Telcos are increasingly deploying AI to improve customer satisfaction while simultaneously improving network operations. However, increasingly complicated operating and competitive challenges coupled with sluggish revenue growth is necessitating accelerated AI adoption. A lack of understanding or investment in AI will have an impact on the operating and financial profiles for telcos and may also affect their ratings,” said Vineet Khattar, Vice President, Diversified Industries.

For more on artificial intelligence, please see DBRS Morningstar’s commentaries in the series:

Part 1 of 5: Artificial Intelligence: Empowering Firms Like Never Before

Part 2 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Airlines Sector

Part 3 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Grocery Sector

Part 4 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Auto Sector