AI in Telecom Market by Component (Services, Solutions); by Technology (Natural Language Processing (NLP), Machine Learning (ML) and Deep Learning); by Deployment Mode (On-premises, Cloud); by Application (Virtual assistance, Customer analytics, Self-diagnostics, Network security, Network optimization, Others); and by Region (North America, Europe, Asia Pacific, Latin America, MEA); - Global Forecasts 2021 to 2027

The Global AI in Telecom Market was valued at US$ 971.2 Mn in 2020 and is expected to reach US$ 9365.5 Mn by 2027, with a growing CAGR of 39.8% during the forecast period (2021-2027).

The Global AI in Telecom Market Definition:

 AI technology can change the operations and functions of various industries because it has potential to achieve innovation of various ideas. In particular, it has a wide range of applications of artificial intelligence, such as telecommunication front-end customer service, network performance, etc.

The Global AI in Telecom Market Snapshot:

AI in Telecom Market Size

The Global AI in Telecom Market Dynamics:

AI in the telecom market is growing at a significant growth rate during the forecast period. The growth is attributed to the focus on the advancements in technology and improving customer experience. Telecommunications is one of the fastest-growing industries that are using AI in many aspects of their business, including improving the customer experience and the reliability of networks. Telecom companies are primarily using AI for customer service applications. For example, it uses chatbots and virtual assistants to respond to numerous support requests for installation, maintenance, and troubleshooting.

Moreover, virtual assistants also deploy and automate responses to support requests to improve customer convenience and reduce business costs. For instance, Vodafone Ltd. has improved its customer experience by 68% after introducing a Chatbot called TOBi to handle customer inquiries.

Additionally, growing Over-The-Top (OTT) services such as video streaming have transformed the dissemination and consumption of audio and video content. As more consumers use OTT services, consumer demand for bandwidth has increased significantly. There is upsurge traffic on OTT services are linked to high operating costs (OpEx) in the telecom industry. AI helps the telecommunications industry reduce operating costs by minimizing the human intervention required to configure and maintain networks. Automation also allows telecom companies to onboard customers faster while introducing new services faster.

  • By Component
    • Services
      • Professional Services
      • Managed Services
    • Solutions
      • Platforms
      • Software Tools
  • By Technology
    • Natural Language Processing (NLP)
    • Machine Learning (ML) and Deep Learning
  • By Deployment Mode
    • On-premises
    • Cloud
  • By Application
    • Virtual assistance
    • Customer analytics
    • Self-diagnostics
    • Network security
    • Network optimization
    • Others (marketing campaign analytics and contact center analytics)
  • By Region
    • Asia Pacific
    • North America
    • Latin America
    • Europe
    • Middle East & Africa

Company Profiles and Competitive Intelligence

The key players operating in the AI in telecom market are:

  1. Google LLC
  2. Microsoft Corporation
  3. Nuance Communications, Inc.
  4. Infosys Limited
  5. International Business Machines Corporation
  6. Apple. Inc.
  7. AT&T Intellectual Property
  8. Intel Corporation
  9. Cisco Systems Inc.
  10. NVIDIA Corporation
  11. Atomwise, Inc.
  12. Amazon
  13. Sentient Technologies
  14., Inc.
  15. Inc.
  16. Colt
  17., Inc.
  18. Lifegraph, Baidu, Inc.
  19. Globe Telecom
  20. Verizon Communications
  21. Evolv Technology Solutions, Inc.
  22. Zebra Medical Vision, Inc.
  23. America Movil
  24. Deutsche Telekom
  25. Enlitic, Inc.
  26. Telefonica

Based on the applications, the customer analytics segment is accounted for the largest market share in the overall AI in telecom market size owing to increasing need of real-time behavioural insights

The customer analytics segment is expected to witness the highest market growth rate owing to the growing need for real-time behavioral insights. Artificial intelligence allows operators to collect and analyze customer data in terms of subscriber intelligence. This information can be further used in several scenarios, including advertising and personalized offers for subscribers. Operators can also use this information to realize optimization of the network by using network resources more efficiently.

There is a need to study the customers and users of the product and services as an individual to analyze and customize the product and service to provide an enhanced customer experience. Customer analytics helps organizations to collect, analyze and track the users and their buying behaviors thoroughly. Several companies incorporate customer analytics technology to study their customers. For instance, according to an article published by Bit.AI, a customer analytics tool named ‘Mixpanel’ is utilized by approximately 26,000 companies worldwide making it a leading analytics tool.

Based on regions, the AI in telecom market in North America accounted for the largest share in 2020 owing to the increasing number of telecom companies in the region, followed by Asia Pacific and Europe

Geographically, the North American region held the largest market share for AI in the telecom market in the year 2020. The dominance is accounted to continue throughout the forecast period. The region is one of the earliest adopters of advanced technology and the growth of the region is also supported by a growing number of telecom companies using automation and AI for customer service and network optimization. For instance, in 2018 AT&T Intellectual Property launched mobile 5G powered by edge AI computing in the US. According to the 'Aithority', AI technology insights, the AT&T Company is using artificial intelligence and machine learning to transform customer experience and the company also observed a 7% decrease in the distance travelled per dispatch with a 5% rise in productivity.

Asia Pacific region is anticipated to witness the fastest growth rate during the forecast period owing to the technological advancements in developing countries such as India, Japan, and China. For instance, in 2019, Huawei Technologies Co., Ltd., telecommunications equipment and consumer electronics provider, and China Telecom Corporation Ltd., provider of internet access and mobile telecommunications services announced a collaboration to explore more on wireless network cell anomaly detection, and radio cell capacity prediction based on Network AI Engine (NAIE).

The report also provides an in-depth analysis of AI in telecom market dynamics such as drivers, restraints opportunities and challenges


  • AI emerging as a key to self-driven telecommunication network
  • Rising adoption of AI technology for various applications in telecom industry
  • Growing need for monitoring the content spread on telecom network


  • High incompatibility concerns


  • High adoption of cloud  based AI technology
  • Increasing adoption of AI enabled smartphones

Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.

COVID-19 Impact on the AI in Telecom Market Analysis

The impact of COVID-19 has greatly affected the AI in telecom market. The outbreak of covid-19 has led to a massive rise in telecommunication industry. All the industries were forced to shift towards work from home trend and thus the telecommunication network industry has grown at a rapid pace. Varied technological advancements in telecommunication industry such as incorporation of 5G network, Artificial Intelligence (AI), Internet of Things (IoT), Big Data, and Distributed Ledger Technology (DLT) are thus growing at a significant speed During the pandemic period, all the companies and organizations were connected through telecommunication and thus there is an rapid increase observed in the telecommunication industry.

The report also provides an in-depth analysis of key trends in AI in telecom market

Sr. No. Trends Impact
1 The trend of shifting to 5G network for the advantages such as higher capacity, increased bandwidth compared to 4G, and lower latency is driving the AI in telecom market growth Positive
2 The increasing number of AI-enabled smartphones demand is propelling the AI in telecom market growth during the forecast period Positive

The report also provides an in-depth analysis of recent news developments and investments

  1. In October 2020, Infosys Limited, key market player in next-generation digital services and consulting completed its successful acquisition over Blue Acorn iCi, digital customer experience, commerce & analytics company. The acquisition is expected to strengthen the end-to-end customer experience offerings by Infosys and also is expected to help in tracking of their digital transformations.
  2. In March 2020, Google Cloud announced a comprehensive new strategy to help telecommunications companies digitally transform. Google Cloud’s strategy focuses on three key business outcomes for telecommunications companies: monetizing 5G as a business services platform, engaging customers with data-driven experiences, and improving operational efficiency across telecom core systems.

The unique insight provided by this report also includes the following:

  1. In-Depth Value Chain Analysis
  2. Sector Snapshot
  3. Opportunity Mapping
  4. Key Players Positioning Matrix
  5. Strategies Adopted-Benchmarking Heat Map
  6. Market Trends
  7. Regulatory Scenario
  8. Covid-19 Impact Analysis
  9. Product Comparison
  10. Pre & Post COVID 19 Impact On AI In Telecom Market
  11. Competitive Landscape

Frequently Asked Questions (FAQs)

The global AI in telecom market was valued at USD 971.2 Mn in 2020 and is anticipated to reach USD 9365.5 Mn by 2027.

The AI in telecom market is estimated to grow at a compound annual growth rate (CAGR) of 39.8% during the forecast period.

In the base year 2020, North America accounted for largest regional market share in the AI in telecom market.

A few key players include, but not limited to: Google LLC, Microsoft Corporation, Nuance Communications, Inc., Infosys Limited, International Business Machines Corporation, Apple. Inc., AT&T Intellectual Property, Intel Corporation, Cisco Systems Inc., NVIDIA Corporation, Atomwise, Inc., Amazon, Sentient Technologies,, Inc., Inc.

Yes, the report contains detailed COVID-19 analysis for AI in telecom market.

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  1. Introduction
    1. Product outline
    2. AI in telecom market definition
    3. Different types of AI in telecom  
    4. Analysis of AI in telecom  ecosystem
    5. Supply chain analysis
    6. Covid -19 impact
    7. Market dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Threats
    8. Technology overview
    9. Patent analysis
  2. Technology and Regulatory Landscape for AI in Telecom    
    1. Regulations and standards
  3. AI in Telecom  Market Pricing Analysis
    1. Prices of AI in telecom   
  4. AI in Telecom  Market by Component
    1. Services
      1. Professional Services
      2. Managed Services
    2. Solutions
      1. Platforms
      2. Software Tools
  5. AI in Telecom  Market  by Technology
    1. Natural Language Processing (NLP)
    2. Machine Learning (ML) and Deep Learning
  6. AI in Telecom  Market  by Deployment Mode
    1. On-premises
    2. Cloud
  7. AI in Telecom  Market by Application
    1. Virtual assistance
    2. Customer analytics
    3. Self-diagnostics
    4. Network security
    5. Network optimization
    6. Others (marketing campaign analytics and contact center analytics)
  8. Regional Analysis
    1. North America
      1. US
      2. Canada
      3. Mexico
    2. Europe
      1. Germany
      2. UK
      3. France
      4. Norway
      5. Italy
      6. Spain
      7. Netherlands
      8. Rest Of Europe
    3. Asia Pacific
      1. China
      2. India
      3. Japan
      4. Australia
      5. New Zealand
      6. Rest Of Asia Pacific
    4. Middle East and Africa
    5. South America
  9. Key Strategic Insights
    1. New applications
    2. Emerging technologies
    3. Opportunity mapping
    4. Critical success factors
    5. Environmental impact and sustainability issues
    6. Consumer preferences
  10. Key Market Trends / Recent Developments
  11. Competitive Scenario
    1. Competitive Strategies of Key Players
      1. Mergers and Acquisitions
      2. Investments
      3. Joint Ventures
      4. New Product launches
    2. Strength of product portfolio
    3. Ranking of Key Players
    4. Presence of players by Geographies
  12. Key Global Players
    1. Google LLC
    2. Microsoft Corporation
    3. Nuance Communications, Inc.
    4. Infosys Limited
    5. International Business Machines Corporation
    6. Apple. Inc.
    7. AT&T Intellectual Property
    8. Intel Corporation
    9. Cisco Systems Inc.
    10. NVIDIA Corporation
    11. Atomwise, Inc.
    12. Amazon
    13. Sentient Technologies
    14., Inc.
    15. Inc.

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