The excitement over AI is sweeping the world. Companies are busy reshaping their strategies in order not to be left behind in the AI era. Telcos are no exception in this sweeping change. SK Telecom is seeking innovative business opportunities with AI, in an innovative and broad manner: transition of telecom infrastructure to integrate AI; release of its own LLM service; collaboration with global telcos and big tech firms that have LLM technology; AI data center project; and expanding AI-based healthcare services.
How would an opinion leader in the field of technology envision the evolution of communication and telecom companies in the AI era? In GSMAGlobal System for Mobile communications Association’s live podcast, Nvidia’s Senior Vice President Ronnie Vasishta said that the future of communication is about “intelligently connecting intelligence” and stressed* that telcos have the largest potential in adopting AI.
* Source: https://www.mobileworldlive.com/ai-cloud/nvidia-telco-boss-sees-ai-living-up-to-hype/
Newsroom had an interview with Senior Vice President Ronnie Vasishta to investigate challenges and opportunities AI will bring to the telecom industry. Ronnie, an opinion leader in the IT industry that covers telecom and semiconductor, is also the Senior Vice President Telecommunications at NVIDIA. Before joining the company, he served as vice president at Intel Corporation and CEO of eASIC Corporation.
※ This interview is not about a business relationship between NVIDIA and SKT. Rather, it is more about sharing his general insights with the public, industry members, and other media.
The AI revolution for telcos is starting and will eventually leave no part unaffected by or doing without AI
Ronnie Vasishta, Senior Vice President Telecommunications, NVIDIA
Q. The current excitement around AI is clear to see. How do you view this optimism and enthusiasm, particularly in terms of the transformations AI might bring to the telecommunications industry?
The AI revolution for the telecommunications industry is starting. It is unlikely that any part of the industry will not be affected by or able to leverage AI. For example; In network optimization, AI can predict equipment failures, manage traffic dynamically, and support self-optimizing networks, leading to more reliable and efficient services. For customer experience, AI-driven personalization, virtual assistants, and sentiment analysis can provide tailored services and quicker support, boosting satisfaction and loyalty. The integration of AI also facilitates the orchestration and management of IoT data and devices from autonomous vehicles to millions of robots. Perhaps most importantly, though, the Radio Access Network (RAN) itself will become intelligent and more efficient through the targeted use of AI.
Q. What do you believe are the most significant roles and responsibilities of telecom companies in the AI era? How can they create value beyond simply providing infrastructure?
In the AI era, telecom companies have a new opportunity to expand their roles beyond traditional infrastructure providers. For the first time, the fusion of compute and connectivity will happen. The compute will be AI computing and will be managed as part of the network. The telecom companies will morph from providers of connectivity to providers of connecting intelligence. Whether that be a personal assistant on a mobile phone, an autonomous vehicle, a virtual experience, or AI services for enterprises such as airports, ports etc. Through these initiatives, telecom companies can create value beyond infrastructure and contribute significantly to the growing global digital ecosystem.
Data center infrastructure and AI-driven personalization are key business areas for telcos
Q. How do you see AI creating new business opportunities for telecom companies? Specifically, what innovative business models beyond traditional telecom services do you envision?
This is the key question. What is the point of investing in AI if telcos can’t see an outsized benefit from doing so? In a time where telcos might feel a sense of stagnation, AI is bringing a host of new business opportunities. The first has been to provide data center infrastructure to meet the needs of their specific locales. Many countries around the world are focused on delivering sovereign AI infrastructure to ensure the language, culture, and IP of that region are reflected in the services provided to that region. This could be government services, healthcare, education, security, and the list goes on. Worldwide, telcos are stepping in to fulfill that role as they are trusted entities in their regions and have the right skill sets.
Another key area is enhancing customer experience through AI-driven personalization. Telecom companies can offer tailored services, such as generative AI personal assistants on mobile phones that are responsive and always available. Such services and recommendations improve customer satisfaction and foster loyalty. Additionally, AI can optimize network management by predicting congestion and automating maintenance, enabling telecoms to offer premium, high-reliability services to enterprise clients in every industry.
Q. Enhancing customer experience is a major driver for AI investment in telecom. What innovations are you most excited about in this area? Are there any groundbreaking ideas that could lead to entirely new services beyond improving existing customer experiences?
One of the most exciting innovations for customer experience in the telecom space is the use of AI-driven chatbots and virtual assistants that can handle a wide range of customer inquiries in real-time. These tools are not only improving response times but also learning from interactions to provide increasingly accurate and personalized solutions. Natural Language Processing (NLP) advancements and language translation enable these systems to understand and process customer queries with greater nuance and accuracy.
Beyond improving existing customer experiences, AI is opening doors to entirely new services. For instance, AI-powered network management can anticipate and resolve issues before they impact the customer, ensuring a consistently high-quality service. This proactive approach could evolve into a new standard of service where network disruptions are virtually eliminated.
Q. What are some of the key challenges telecom companies might face in leading the development of new AI ecosystems? What strategies do you think are necessary to overcome these challenges and pioneer in this space?
Telecom companies are uniquely positioned to lead the development of new AI ecosystems due to their extensive data resources and infrastructure capabilities. However, they face key challenges along the way. One of the primary challenges is the integration of AI technologies into existing legacy systems, which can be complex and costly. Telecom infrastructures are often built on legacy technology, making it difficult to seamlessly incorporate new AI-driven solutions. Additionally, there is the challenge of data privacy and security. Telecom companies handle vast amounts of sensitive customer data, and any AI initiatives must comply with stringent data protection regulations to maintain customer trust and avoid legal penalties.
To overcome these challenges, telecom companies need to invest in modernizing their infrastructure, such as enabling functions to become software-defined and then accelerated, to support AI integration, which may involve adopting cloud-based solutions and edge computing to enhance scalability and efficiency. Collaborating with technology partners and AI startups can also provide access to cutting-edge innovations and expertise, accelerating the development process. Additionally, telecom companies should prioritize building robust data governance frameworks to ensure compliance with privacy regulations and foster customer trust.
Q. If you’re able to comment, what are your thoughts on SK Telecom’s recent AI initiatives? Specifically, how do you assess their efforts to develop new business dimensions using AI, and what impact do you think this might have on the future of the telecom industry?
We see SK Telecom has really leaned into the adoption and leverage of AI with initiatives such as the Global Telecom AI Alliance and also their investments in companies in the AI space. We are very encouraged that SKT sees the positive impact of AI to not only their business but also the world’s telecommunications ecosystem and that they are making some significant investments to accelerate this.
