Artificial Intelligence (AI) and automation have profoundly transformed India's telecommunications sector, enhancing network efficiency, customer experience (CX), and operational agility.
The integration of AI in India's telecom sector began in the early 2010s, focusing on automating routine tasks and improving network management. By 2015, leading telecom operators initiated pilot projects to explore AI capabilities, such as predictive maintenance and customer service automation. These early endeavors aimed to reduce operational costs and enhance service reliability.
A significant milestone occurred in 2023 when the Telecom Regulatory Authority of India (TRAI) recommended broader AI deployment across the industry. This directive marked a pivotal shift, encouraging telecom companies to integrate AI into core operations, including network optimization, fraud detection, and customer engagement.
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Embracing AI and Automation
As of 2024, India's telecom sector has fully embraced AI and automation, with substantial investments in these technologies. A KPMG report revealed that, in India, 55% of technology, media, and telecommunications (TMT) organizations have successfully implemented AI at scale, while 37% are in the process of scaling their AI initiatives. Notably, 67% of these companies have begun generating returns exceeding 10% on their AI investments, underscoring the financial viability of such endeavors.
The rapid expansion of 5G technology has further accelerated AI integration. In October 2024, India deployed over 460,592 5G base transceiver station (BTS) sites, with 5G user numbers surpassing 125 million and projected to reach 350 million by 2026. Data consumption has also surged, averaging 21.30 GB per user monthly. AI plays a critical role in managing this increased data traffic, optimizing network performance, and delivering personalized services.
Leading telecom operators such as Reliance Jio have been at the forefront of AI and automation adoption. Reliance Jio has developed JioBrain, an in-house AI and generative AI (GenAI) platform that utilizes digital twin technology to create virtual representations of network assets. This innovation has enhanced network planning, operations, and customer service, supporting over 500 million customers across more than five million cells. With the advent of AI and cloud computing, Jio has taken another significant leap by introducing Reliance Jio AI Cloud—a state-of-the-art cloud computing and AI-driven platform designed to empower businesses, developers, and enterprises across India.
Moreover, Vodafone Idea (Vi) is leveraging HCL’s ANA platform to optimize network operations, while Bharti Airtel has awarded Nokia a multi-billion-dollar deal to enhance 4G and 5G infrastructure. Bharti Airtel’s Nxtra is pioneering AI-driven data centers, using predictive maintenance and automation to improve energy efficiency and capital utilization. Maxis has introduced Mia, an AI-powered concierge service that streamlines business customers’ roaming management with intelligent workflow automation, while Nokia and Bharti Airtel’s successful 5G Cloud RAN trial is driving network automation, flexibility, and resource scaling. Additionally, Vi is improving voice over long-term evolution (VoLTE) services with Anritsu’s machine learning (ML)-based closed-loop automation.
Similarly, India's collaboration with the International Telecommunications Union (ITU) on AI-driven digital twin technology for infrastructure aligns with its broader AI expansion, leveraging advanced analytics and automation to enhance network efficiency, predictive maintenance, and smart infrastructure management.
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Challenges Hindering Full-Scale AI and Automation Adoption
Despite significant progress, the adoption of AI and automation in India's telecom sector has encountered several challenges.
In a recent Telecom Review Asia webinar, the panelists concluded that the greatest challenges to AI adoption in Asia include cost optimization, integrating AI with existing infrastructure, and a shortage of skilled AI talent. The same three challenges can be applied to India’s telecom sector. Massimiliano Baravelli, Head of the AI Department at QuantAzimuth, spotlighted AI talent shortage as an area of concern. He pointed out that investing in AI skills is essential for both telecom and tech companies, as there remains a gap in expertise.
Data privacy and security concerns have also intensified following the increased usage of AI, as telecom companies handle vast amounts of sensitive consumer data. Additionally, regulatory disparities between telecom service providers and over-the-top (OTT) platforms have created an uneven playing field.
While telecom operators must adhere to stringent licensing and privacy regulations, OTT platforms often operate with fewer restrictions. In response, industry bodies such as the Cellular Operators Association of India (COAI) have advocated for enforcing privacy and traceability rules on OTT services to promote fair competition and ensure a level regulatory landscape.
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Promising Outlook
The future of AI and automation in India's telecom sector appears promising, with government-backed initiatives and industry advancements driving progress. The Bharat 6G Vision initiative aims to position India as a leader in 6G technology, bolstered by an ambitious target to secure 10% of global 6G patents. This initiative includes dedicated funding for advanced testbeds and ecosystem acceleration projects, fostering research, innovation, and commercial applications in AI-driven telecommunications.
Furthermore, India's AI sector is poised for remarkable growth, with AI services projected to reach USD 17 billion by 2027. According to a report titled ‘AI Powered Tech Services: A Roadmap for Future Ready Firms; AI & GenAI's Role in Turbocharging the Industry,’ India boasts the second-largest AI talent pool globally, with 420,000 professionals. India’s technology industry has already seen a 15%+ growth in AI jobs over the past 12 months, with positions such as AI engineers growing by 67% year-over-year (YoY). This trend underscores India's commitment to developing a wide array of AI-based services and solutions, extending beyond traditional IT offerings.
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