The telecommunications sector is leading the way in adopting generative AI (GenAI), according to a global study of senior decision-makers.
Commissioned by SAS and carried out earlier this year by Coleman Parkes Research, the study surveyed 1,600 executives responsible for GenAI strategy and data analytics. It examined where organisations are investing, how GenAI fits into strategic priorities, and the main obstacles to implementation.
Respondents detailed their current GenAI deployment plans, how the technology supports business objectives, and the barriers they face in scaling use across their organisations.
The research found that 70% of telecom companies are already using GenAI, with many actively implementing or testing solutions across marketing, sales, and IT. Nearly 29% of telcos are deploying or planning enterprise-wide rollouts.
The telecom industry leads other sectors in GenAI uptake. On average across industries, 54% have fully or partially implemented GenAI. Retail follows with 66% and the banking and insurance sector reports 60% adoption.
Open-source large language models (LLMs) are especially popular among telcos: 38% of telecommunications organisations are using them, compared with a 29% average in other industries.
Looking ahead, telcos again top investment plans: 89% intend to invest in GenAI in the next financial year, matching the insurance sector’s figure.
Despite strong adoption, telcos have significant concerns. Data privacy (83%) and data security (80%) are the top worries, followed by ethical implications (60%) and shortages in internal talent and skills (54%).
These priorities mirror trends in other industries. For example, banking reports data privacy concerns at 74% and data security at 71%. Similar patterns appear across the public sector, insurance, life sciences, and manufacturing.
Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe, remarked: “It’s not surprising to see the telco industry lead in the use and implementation of GenAI.”
She added that senior decision-makers recognise both the immediate advantages and the transformational potential of GenAI, noting that nearly one in three telcos plan enterprise-wide adoption.
Björkman highlighted how GenAI can enrich customer engagement, improve predictive analytics, and strengthen market positioning. At the same time, she stressed the need to address risks: “By prioritising data privacy and security, organisations can fully harness GenAI to improve operations and better serve customers.”
The SAS study offers several recommendations for effective GenAI deployment:
- Strategic deployment aligned with business objectives
- Comprehensive governance frameworks to manage risk
- Seamless technological integration with existing systems
- Access to expert guidance and specialised skills
These findings are part of SAS’ global report, which provides detailed best practices and strategic guidance to help organisations unlock GenAI’s potential. The report also compares adoption and approaches across key markets and sectors.
As telecom companies continue to adopt and innovate with generative AI, managing the associated challenges remains essential. By addressing privacy, security, and skills gaps—and by investing strategically—the sector can capture substantial operational and customer-facing benefits.
(Photo by Harley-Davidson)
See also: The EU AI Act and telecoms fraud
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