Skip to main content

Virtual Assistant Apps Adopted by Telecom Providers

More telecom service providers will invest in emerging technologies that enable them to improve operational productivity via automation, and introduce new capabilities for their customers. Virtual assistant applications are emerging, as telcos start to deploy artificial intelligence (AI) and machine learning (ML).

While the telecom network operators are prioritizing these virtual assistants primarily to improve customer engagements and consequently reduce churn rates, they are also positioning themselves to compete directly with Amazon Alexa, Google Assistant, Apple Siri and Microsoft Cortana.

Telco Virtual Assistant Market Development

According to the latest worldwide market study by ABI Research, the virtual assistants will enable telecom service providers to save $1.2 billion on customer care management by 2022, resulting in a compound annual growth rate (CAGR) of 17 percent over the next five years.

"The recent introduction of virtual assistants in customer service signifies the level of urgency within telcos to start emphasizing the importance of customer relationships and customer care management, something they have been taking for granted for decades," said Sarju Vasavada, industry analyst at ABI Research.

Case in point, Vodafone released TOBi, after being fined £4.6 million by the UK regulator, Ofcom, for falsely charging more than 10 thousand mobile pay-as-you-go customers for top-up credit. They also had a record-breaking number of customer complaints, before the TOBi vitual assistant was deployed.

These virtual assistants now help mobile telecom service provider customers with a variety of issues -- ranging from basic account inquiries to SIM purchases, service troubleshooting, and device settings.

Several progressive telcos are already leveraging the AI and NLP technology market leaders -- such as IBM Watson, Nuance, LivePerson, and IPsoft -- or they're custom-building these software solutions in-house.

For example, Telef√≥nica is developing their digital chatbot, Aura for 2018, and DT’s Tinka is already averaging 50 thousand customers in Austria every month. According to the ABI assessment, more telecom service providers are keen to introduce virtual assistant capabilities throughout their markets.

As a result, ABI Research now forecasts that AI investments by telecom network operators will reach $14 billion by 2022 -- that's a CAGR of 22.4 percent.

Outlook for Telco AI Technology Deployments

The benefits of early AI investments by leading telcos are beginning to accelerate other deployments, with Orange and SK Telecom both announcing the release of their multi-talented chatbots -- Djingo and Nugu -- respectively in early 2018.

"Telcos are slowly but steadily getting ready for virtual assistant prime-time. We are bullish on telcos making this next-generation service automation leap within the next five years," concludes Vasavada.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe