1、Technology,Media&Telecommunications Practice How generative AI could revitalize profitability for telcos The new technology offers the sector a real opportunity to reverse its stagnant fortunes.But seizing it will require embracing innovation and agility to an unprecedented degree.February 2024 Gett

2、y ImagesThis article is a collaborative effort by Stephen Creasy,Ignacio Ferrero,Toms Lajous,Vctor Trigo,and Benjamim Vieira,representing views from McKinseys Technology,Media&Telecommunications Practice.49Amid the intense competition and cost-cutting confronting telcos,early evidence suggests that

3、generative AI(gen AI)could be the catalyst to reignite growth after a decade of stagnation.But will it be a groundbreaking differentiator or simply table stakes?Already the technology is on track to become a new norm in the industry.Most telco leaders we surveyed1 say they are developing gen AI solu

4、tions that range from pilots to full-scale deployments,and leading telcos such as AT&T,SK Telecom,and Vodafone have made much-publicized early gen AI commitments and launched trials.Some telcos around the world have started to experience significant double-digit percentage impact from this technolog

5、y.One European telco recently increased conversion rates for marketing campaigns by 40 percent while reducing costs by using gen AI to personalize content.A Latin American telco increased call center agent productivity by 25 percent and improved the quality of its customer experience by enhancing ag

6、ent skills and knowledge with gen-AI-driven recommendations.Most impressive is that these telcos deployed the models in just weeksthe first went live in two weeks,and the second in five.For an industry with a mixed track record for capitalizing on new technologies and legacy systems that slow innova