Artificial Intelligence in telecom uses software & algorithms to estimate human perception in order to analyze big data such as data consumption, call record, use of the application to improve the customer experience. Also, AI helps the telecommunication operators to detect flaws in the network, network security, network optimization & offer virtual assistance. The global Artificial Intelligence in telecommunication market was valued at $453.05 million in 2018 & is estimated to generate net revenue of approximately $10565.09 million by 2027, growing at a CAGR of 42.16% over the forecast period. The base year considered for the market study is 2018, & the forecasted period is 2019-2027. Several factors drive AI in the telecommunication market, such as:

• The upsurge in mobile data traffic & smartphone users across the world
• Technological advancements & innovations of AI in telecommunication
• Growing implementation of Artificial Intelligence in self-driving telecommunication networks
• Increase in the requirement to monitor content spread on telecommunication networks
• Integration of artificial intelligence with upcoming wireless networks

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Global AI in the telecom market is primarily driven by the integration of AI with future wireless networks. AI & machine learning technologies are expected to play a vital role in the integration of next-generation (5G) cellular networking technologies & automating of the networks. Telecommunication operators are considering advanced technologies such as AI & machine learning to implement in the 5G system for realization of highly self-organized, intelligent management & fault-free networks that are much more reliable as compared to the earlier networks. Telecommunication companies are integrating AI technologies in their 5G cellular networks to offer telecommunication tools & services. For instance, in 2018, SK Telecom Co., Ltd. stated to incorporate AI technologies in the 5G network that would accelerate the 5G network ecosystem.

Consumer analytics dominates the application segment of global AI in the telecommunication market. It captured the largest market share of 30.87% in 2018. Consumer analytics based on the consumer data provides key insight about the network performance which in turn helps to select the cell sites intelligently, provides a platform for direct marketing, & improve customer relationship. Substantial adoption of artificial intelligence, machine learning, deep learning & predictive analytics by the telecommunication operators & services providers to identify customer telecommunication service usage pattern through customer analytics to help in improving the consumer’s overall service experience is expected to boost the market growth. For instance, China Mobile Ltd. (China) has deployed AIXON data intelligence platform in 2018 which is an artificial intelligence-based customer analytics platform to uniquely discover new customers while expanding their reach, enriching their understanding & making precise predictions considering the highest requirement of telecommunication services that is expected to contribute to market growth.

Concerns related to incompatibility, the unreliability of artificial intelligence algorithms, lack of skilled workforce & difficulties in the protection of confidential & private information, are acting as the primary factors that are inhibiting the growth of the AI in telecommunication market during the forecast period. Incompatibility concerns primarily restrict global Artificial Intelligence in telecommunication market growth. Incompatibility concern between the artificial intelligence technology & telecommunication systems can generate complexities related to integration in artificial intelligence in telecommunication solutions. Challenges around compatibility are majorly witnessed due to lack of standards & protocols in artificial intelligence technologies & the telecommunication sector.

The market has been divided on the basis of technology, application, component and deployment mode. Each segment has been thoroughly discussed both qualitatively & quantitatively, with stress on the market value & growth of the major sub-segments.

Market by Deployment Mode:

• Cloud
• On-Premises

Market by Technology type:

• Machine Learning & Deep learning
• Natural language processing

Market by Components:

• Solutions
  • Software tools
  • Platforms
• Services
  • Professional Services
  • Managed Services

Market by Application:

• Consumer Analytics
• Network Security
• Network Optimization
• Self-Diagnostics
• Virtual assistance
• Other Application

The total market revenue is calculated on the basis of net adoption of AI solutions & services across the various application in the telecommunication sector.

Geographically, the global AI in telecommunication market has been segmented on the basis of four major regions, which includes:

• North America Artificial Intelligence (Ai) in Telecommunication Market : the United States, Canada
• Europe Artificial Intelligence (Ai) in Telecommunication Market : United Kingdom, Germany, France, Italy, Spain, & Rest of Europe
• Asia Pacific Artificial Intelligence (Ai) in Telecommunication Market : China, Japan, India, South Korea, Australia & Rest of Asia Pacific
• Rest of World: Latin America, Middle East & Africa

North America is the dominant region for AI in telecommunication market with over 46% market share in 2018 in terms of revenue. The dominance of North America is attributed to the fact of the presence of a majority of the key players that are offering their solutions in the region. These include IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Google (U.S.) & others.

Further, North America has been identified as one region that has witnessed wide adoption of artificial intelligence across all the major end user industries. Further, high investment in research & development activities to promote the adoption & increase the application areas of artificial intelligence. Moreover, Networking & Information Technology Research & Development Subcommittee (NITRD) launched research & development strategic plan to focus on AI R&D efforts, including to develop effective methods for human-AI collaboration.

On the flip side, Asia Pacific is the fastest growing region during the forecast period (2019-2027). The fastest growth rate of Asia Pacific is attributed towards various facts such as increasing telecom subscribers, rising smartphone users rising smartphone users, AI development plan & others. For instance, China 13th five-year plant (2016-2020) includes its agenda to transform China into Nation of Innovation. China has launched 13th Five-Year National Science & Technology Innovation Plan called for China to seize the “high ground” in international scientific development in a year. Moreover, according to the Indian Brand Equity Foundation, India is the second largest telecommunications industry, having approximately XX billion subscribers (September 2018). The wireless industry is having XX% of the total subscribers (September 2018). Further, as per the Communication Worker Union report 2016, the total smartphone penetration in Australia in the year 2016 was XX%.

Report scope of global AI in telecom market covers segmentation analysis of technology, application, component & deployment mode. The deployment modes comprise of cloud & on-premises through which AI is being deployed in the telecommunication sector. Different technology majorly includes deep learning, natural language processing (NLP), & machine learning. The component segment comprises of AI-based solutions & services. The AI-based solution covers software tools & AI platforms being offered in the market. Service segment covers professional & managed services. The applications segment comprises of customer analytics, network security, network optimization, self-diagnostics, virtual assistance & others.

The market has a number of key players, some of the major players include:

• IBM Corporation
• Microsoft Corporation
• H₂O.ai
• Baidu, Inc.
• Google, Inc.
• Other companies

Market share analysis & company profiles of prominent market players are discussed in detail. Most of the companies look for strategies such as merger & acquisition, partnership, contracts, agreements, & new product launch to gain a competitive edge over each other. For instance, in December 2018, Tech Mahindra signed a partnership agreement with H₂O.ai to combine H₂O.ai’s H₂O Driverless AI & its machine learning platform to provide expertise across various end-user industries. In November 2018, IBM signed a partnership agreement with Telefónica (Spain) to implement blockchain technology to manage international call traffic. In June 2018, Microsoft Corporation acquired GitHub world’s leading software development platform where 28 million developers share & collaborate the knowledge. In April 2018, Infosys developed next-generation AI platform NIA for strengthening its digital technology-based services.

Key findings of the global Artificial Intelligence (AI) in telecommunication market:

• North America accounts for the largest market share of the overall AI in telecom market.
• Increasing adoption of cloud based artificial intelligence offerings in the telecommunication sector is one of the major trends of the market.
• The emergence of smartphones enabled with artificial intelligence technology is one of the major factors that offers a growth opportunity to the market.
• Integration of artificial intelligence technologies with future wireless networks is expected to increase the demand & adoption of such artificial intelligence tools & services in the telecommunication sector.