Prominent Generative Artificial Intelligence (AI) In Telecom Market Trend for 2025: Enhancing Telecom Efficiency With Artificial Intelligence Innovations

What combination of drivers is leading to accelerated growth in the generative artificial intelligence (ai) in telecom market?
The growth of generative artificial intelligence in telecom markets is predicted to be propelled by the escalating count of Internet of Things (IoT) devices. These IoT devices are interconnected and utilize enhanced connectivity to share and process data over networks. This surge in IoT devices is a result of technological advancements, reduced costs, and a rise in demand for automation and data-driven findings. Generative artificial intelligence can amplify the connectivity of IoT devices in telecom by honing network management and predicting the requirements for maintenance, thus heightening efficiency and scalability. For example, a report by Ericsson, a Swedish telecom company, highlighted that global IoT connections reached 15.7 billion in 2023 and were projected to grow by 16% to 38.8 billion by 2029, as stated in their April 2024 publication. As such, the mounting number of IoT devices is the driving force for the growth of generative artificial intelligence in the telecom market.

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What is the projected compound annual growth rate (CAGR) of the generative artificial intelligence (ai) in telecom market from 2025 to 2034, and what factors influence it?
The market size for generative artificial intelligence (AI) in the telecom sector has witnessed a significant growth in the past few years. From $0.48 billion in 2024, it is projected to increase to $0.73 billion in 2025, with a compound annual growth rate (CAGR) of 53.5%. The expansion during the historic period is associated with the rising demand for superior customer service, the escalating embrace of automation, the growth of over-the-top services, and an increasing count of telecom companies.

In the upcoming years, a remarkable expansion is anticipated in the generative artificial intelligence (AI) in the telecom market, predicting a surge to $4.03 billion by 2029 at a compound annual growth rate (CAGR) of 53.2%. The predicted upswing during the forecast period stems from the escalating usage of generative AI-powered chatbots, an upsurge in smart city projects, the rise of digital penetration, an increase in internet of things devices, and heightened network requirements. Foreseen trends for the forecast duration encompass progress in AI technologies, the invention of advanced telecom solutions, the amalgamation of groundbreaking technologies, the evolution of digital transformation and innovation, along with the inclusion of the internet of things in edge computing.

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How are the latest trends influencing the growth of the generative artificial intelligence (ai) in telecom market?
Significant businesses operating in the generative artificial intelligence sector for the telecom market are making strides towards creating innovative technological solutions like GenAI Telco platforms with the goal of improving customer interaction and maximizing network performance. GenAI Telco platforms are AI-equipped systems specifically engineered for the telecom sector to streamline operations, improve network administration, and elevate customer service. For example, in September 2023, Netcracker Technology, an IT company based in the US, unveiled the GenAI Telco Solution aimed at hastening the uptake of high-value use instances across the telecom sector. This initiative provides communication service providers (CSPs) with the ability to securely utilize their valuable telecom information and expertise to offer significant advantages to clients, business partners, and their own firms. The GenAI Telco Platform incorporates knowledge management abilities for building, trialing, and perfecting telecom-related use cases such as customer support, business practices, sales, and network governance. By harmonizing with well-known AI models, this solution paves the way for CSPs to strengthen customer interactions, enhance operational productivity, realize notable cost reductions, and ensure adherence to data protection legislation.

What are the major segments of the generative artificial intelligence (ai) in telecom market and their role in driving growth?
The generative artificial intelligence (AI) in telecom market covered in this report is segmented -

1) By Type: Text-Based, Image-Based, Voice-Based
2) By Component: Software, Services
3) By Deployment: On-Premises, Cloud-Based, Edge, Hybrid
4) By Application: Network Optimization, Predictive Maintenance, Improve Call Center Operations And Customer Support, Personalized Product Or Service Recommendations, Security And Fraud Detection, marketing And Personalized Product Recommendations, Other Applications

Subsegments:
1) By Text-Based: Chatbots And Virtual Assistants, Automated Customer Support, Sentiment Analysis Tools, Text Summarization And Generation
2) By Image-Based: Visual Quality Inspection, Image Recognition Systems, Augmented Reality (AR) Applications, Facial Recognition Technologies
3) By Voice-Based: Voice Assistants, Speech Recognition Systems, Voice Biometrics For Security, Voice Analysis For Customer Insights

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Which regions are key players in the growth of the generative artificial intelligence (ai) in telecom market?
North America was the largest region in the generative AI in telecom market in 2024. The regions covered in the generative artificial intelligence (AI) in telecom market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the generative artificial intelligence (ai) in telecom market?
Major companies operating in the generative artificial intelligence (AI) in telecom market are Amazon Web Services, Microsoft Corporation, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., International Business Machines Corporation, Vodafone Group Public Limited Company, Telefónica S.A., Nvidia Corporation, Telefonaktiebolaget LM Ericsson, Capgemini SE, NTT DATA, Infosys Limited, Wipro Limited, Amdocs Limited, Ciena Corporation, Netcracker Technology Corporation, UiPath Inc., Gsma Advisory Services Ltd, C3.AI inc, LeewayHertz Technologies Pvt Ltd, Subex Ltd, Alepo Technologies Private Limited, Cresta Intelligence Inc, Xaltius Pte. Ltd., Binmile Technologies Private Limited's, Kanerika

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What Is Covered In The Generative Artificial Intelligence (AI) In Telecom Global Market Report?

•Market Size Forecast: Examine the generative artificial intelligence (ai) in telecom market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the generative artificial intelligence (ai) in telecom market for a structured understanding.
•Key Players Overview: Analyze major players in the generative artificial intelligence (ai) in telecom market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the generative artificial intelligence (ai) in telecom market.
•Segment Contributions: Evaluate how different segments drive overall growth in the generative artificial intelligence (ai) in telecom market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the generative artificial intelligence (ai) in telecom market.
•Industry Challenges: Identify potential risks and obstacles affecting the generative artificial intelligence (ai) in telecom market.
•Competitive Landscape: Review strategic developments in the generative artificial intelligence (ai) in telecom market, including expansions, agreements, and new product launches.

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