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Telco AI: State of the Market, Q2 2025 — Key Insights for the Telecom Industry
Artificial Intelligence (AI) continues to reshape the telecom landscape, delivering measurable value while paving the way for future innovation. GSMA Intelligence’s latest analysis, based on AI deployments from 250 operators worldwide, offers a snapshot of where the industry stands and where it’s heading.
From Strategy to Execution
In 2024, telcos focused on defining the strategic rationale for AI adoption. In 2025, the emphasis has shifted to tangible results. AI deployment is no longer an abstract goal — operators are implementing solutions that deliver clear operational and commercial benefits.
Customer care remains the dominant use case, representing nearly half of deployments. Automation through AI-powered call centres and chatbots is driving significant cost savings while supporting churn reduction and upselling. Network-related applications follow at around 20%, including pre-emptive fault detection and performance optimization.
Efficiency First, Revenue Later
The data shows that 75–80% of AI deployments are aimed at reducing costs, with only 10–20% focused on generating new revenue. While revenue-driven models — such as GPU-as-a-service (GPUaaS) and agentic AI — are still emerging, adoption is expected to accelerate through 2025 and 2026 as trials evolve into commercial offerings.
Regional Deployment Trends
Asia-Pacific leads in deployment volume, averaging nearly four AI use cases per operator, followed by Europe with close to three. Latin America, despite fewer deployments, shows a higher maturity rate, with many projects already live. MENA and Sub-Saharan Africa are in an expansion phase, while North America demonstrates balanced maturity levels.
The Vendor and Partnership Landscape
The AI ecosystem supporting telcos is diverse, spanning chipset manufacturers, hyperscalers, foundational model providers, and enterprise IT groups. Nvidia holds a strong position in GPU supply, while Google, Microsoft, AWS, and emerging AI model providers like Perplexity are establishing significant presence through operator collaborations.
Looking Ahead
AI in telecom is evolving through cycles of testing, validation, and deployment. Operators that focus on impactful, high-quality use cases — rather than sheer volume — are likely to gain the most value. As regulatory frameworks develop and sovereign AI initiatives expand, telcos have the opportunity to shape policy while securing a competitive edge in the digital economy.
Source: GSMA Intelligence, “Telco AI: State of the Market, Q2 2025”
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