Generative Artificial Intelligence (AI) In Telecom Market 2025: The Critical Role of The Role Of Expanding Internet Of Things Devices In Shaping AI innovations In Telecom Driver in Industry Evolution

What are the recent trends in market size and growth for the generative artificial intelligence (ai) in telecom market?

The generative artificial intelligence (AI) in telecom market size has grown exponentially in recent years. It will grow from $0.48 $ billion in 2024 to $0.73 $ billion in 2025 at a compound annual growth rate (CAGR) of 53.5%. The growth in the historic period can be attributed to increasing demand for enhanced customer service, increasing adoption of automation, growing over-the-top services, and a growing number of telecom companies.

The generative artificial intelligence (AI) in telecom market size is expected to see exponential growth in the next few years. It will grow to $4.03 $ billion in 2029 at a compound annual growth rate (CAGR) of 53.2%. The growth in the forecast period can be attributed to increasing adoption of generative artificial intelligence-powered chatbots, growing smart city initiatives, increasing digital penetration, increasing the number of internet of things devices, and growing network demands. Major trends in the forecast period include advancements in artificial intelligence technologies, innovative telecom solutions, the integration of cutting-edge technologies, the development of digital transformation and innovation, and the integration of internet of things edge computing.

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How have varous drivers impacted the growth of the generative artificial intelligence (ai) in telecom market?

The increasing number of Internet of Things devices is expected to propel the growth of generative artificial intelligence in telecom markets going forward. Internet of Things devices refer to interconnected devices that use advanced connectivity to communicate and exchange data over networks. The increasing number of Internet of Things devices is driven by advancements in technology and decreasing costs, along with rising demand for automation and data-driven insights. AI in telecom can enhance Internet of Things device connectivity by optimizing network management and predicting maintenance needs, leading to improved efficiency and scalability. For instance, in April 2024, according to a report published by Ericsson, a Sweden-based telecommunications company, the global IoT connections reached 15.7 billion connections in 2023 and are expected to increase by 16% to 38.8 billion connections by 2029. Therefore, the increasing number of Internet of Things devices is driving the growth of generative artificial intelligence in telecom market.

What are the primary segments of the generative artificial intelligence (ai) in telecom market?

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 firms are leading 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

How will industry trends affect the trajectory of the generative artificial intelligence (ai) in telecom market?

Major companies operating in generative artificial intelligence in telecom market are focusing on developing technologically advanced solutions, such as GenAI Telco platforms, to enhance the customer experience and optimize network performance. GenAI Telco platforms are AI-driven systems tailored for the telecom industry to automate processes, optimize network management, and enhance customer experiences. For instance, in September 2023, Netcracker Technology, a US-based information technology company, launched the GenAI Telco Solution to Accelerate the Adoption of High-Value Use Cases Across the Telecom Business. This solution enables communication service providers (CSPs) to securely leverage their valuable telecom data and knowledge to deliver exceptional benefits to customers, partners, and their own businesses. The GenAI Telco Platform includes knowledge management capabilities for developing, testing, and optimizing telecom-specific scenarios such as customer care, business operations, sales, and network management. By integrating with popular AI models, this solution allows CSPs to enhance customer interactions, improve operational efficiency, and achieve significant cost savings while ensuring compliance with data protection regulations.

Which geographic trends are shaping the generative artificial intelligence (ai) in telecom market, and which region has the highest market share?

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.

What Does The Generative Artificial Intelligence (AI) In Telecom Market Report 2025 Offer?

The generative artificial intelligence (ai) in telecom market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

Generative artificial intelligence in telecom refers to the application of AI techniques to create new data or content, enhancing network operations and customer interactions. It is used to optimize network performance and personalize customer experiences through advanced data analysis and predictive modeling.

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