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Improving CX with Generative AI Chatbot in Telecom: Success Stories and Potential Use Cases
Maryna Bilan

Telecommunication companies are showing a growing interest in Generative AI tools, partly due to the success of ChatGPT. The launch of ChatGPT in November 2022 has sparked a significant increase in curiosity about Generative AI tools, and Telecom companies are quickly adopting these tools to leverage their benefits.

The Telecom industry has been exploring new ways to enhance customer service with Generative AI integration. By incorporating Generative AI chatbots with traditional customer service channels, Telecom companies can offer round-the-clock support, handle customer inquiries efficiently, reduce wait times, and increase customer satisfaction. Additionally, the integration of ChatGPT capabilities can also provide translation services for customers who speak different languages, making it easier for companies to cater to a geographically diverse customer base while cutting costs.

ChatGPT has the potential to assist Telecom companies by offering customized product suggestions and exclusive promotions to consumers, which can enhance their shopping experience and loyalty to the brand. As a result, this could lead to an increase in sales and revenue for telecommunication companies. It can also identify emerging trends and patterns by analyzing customer interactions, allowing companies to develop new products and services that meet their customers’ needs.

With several telcos testing and exploring new use cases for ChatGPT, investment in the telecommunications sector is set to increase in the short to medium term. This is put into perspective by GlobalData’s market opportunity forecasts for AI, which estimate enterprise AI spending in the communications sector at US$1.6 billion in 2022 and project it to increase up to US$2.9 billion by 2026.

Samrat Volam,

Technology Lead Analyst at GlobalData

Generative AI Chatbots Examples in Telecom

Generative AI Telecom Example #1: SK Telecom “A.”

SK Telecom has recently introduced its latest AI service called ‘A.’ as an open beta version available on One Store and Google Play for Android users. This innovative service aims to assist customers in maximizing their time by completing various tasks on their smartphones and recommending music or videos based on their preferences. ‘A.’ combines daily conversations utilizing the Generative Pre-trained Transformer 3 (GPT-3) with specific task handling, allowing customers to naturally switch between casual conversation and task-oriented dialogue. With ‘A.’, customers can expect a time-saving and efficient AI-powered service. “A.”, has gained 1 million subscribers in just 9 months after its release, indicating its success in the Korean market.

In February, they will further enhance the chatbot by incorporating “long-term memory” technology, which remembers previous information for future conversations, and “multi-modal” technology that can process complex data, including text, images, and voice.

SK Telecom plans to promote collaborations with various companies, particularly those that specialize in language models like ChatGPT, and will officially release its AI chatbot “A.” in Korea later this year.

Generative AI Application Example in Telecom
Generative AI Application Example in Telecom, SK Telecom

“It’s like you’re chatting with a friend, where you’re solving issues that you encounter in your daily life,” Eric Davis, vice president at SKT said CNBC on Wednesday at the Mobile World Congress in Barcelona, Spain.

Davis aims to differentiate “A.” from ChatGPT by highlighting that SKT has integrated various services, such as music streaming, e-commerce, and payment applications, into its chatbot. Eric Davis, who had previously worked on Siri, Apple’s voice assistant, mentioned that the strategy is to incorporate a “numerous number of third-party services” into the A. chatbot. Currently, “A.” is only accessible in Korean. Davis mentioned that SKT is in the early phases of studying the possibility of introducing the service on a global level.

Generative AI Telecom Chatbot Example #2: China Telecom

According to China Star Market, China Telecom plans to develop an industrial version of “ChatGPT” specifically for the Telecommunications industry.

Since mid-2022, China Telecom has been heavily invested in research on Generative AI. Its objective is to create an industrial version of ChatGPT, which will be utilized by the company itself and also made available to enterprise clients. China Telecom intends to integrate its new AI technologies with existing services, such as intelligent customer service, as well as media functions like video ring back tones and other AI audio.

China Telecom plans to conduct its independent research and development of AI core capabilities, concentrating on areas such as digital human, chatbots, and metaverse. Additionally, China Telecom partnered with the Shanghai AI Laboratory last year to develop China’s first large-scale urban governance AI model, which has over one billion parameters.

Top Generative AI Chatbot Use Cases in Telecom

Generative AI Chatbot Use Cases in Telecom
Generative AI Chatbot Use Cases in Telecom

Use Case of Generative AI Chatbot for Telecom #1. Personalized product recommendations

Let’s say a customer has been using a basic phone plan with their Telecom provider for the past year. Through analyzing the customer’s usage patterns and interactions with the provider’s website and mobile app, an AI-powered chatbot like ChatGPT can recommend a personalized plan that better fits the customer’s needs. For example, if the customer has been using more data than their current plan allows for, the system could suggest a plan with a higher data limit. Additionally, the system could recommend add-ons such as international calling or unlimited texting based on the customer’s usage habits.

Also, they may suggest a new device that is compatible with the upgraded plan and offers more features, such as a larger screen, better camera, or longer battery life. The company may also offer special deals or discounts for customers who renew their contract and upgrade their plan or device.

Use Case of Generative AI Chatbot for Telecom #2. Technical support

Generative AI chatbot can assist with technical support in Telecom by understanding customer queries and providing relevant solutions. For example, if a customer is facing an issue with their internet connection, the chatbot can ask for details of the problem and try to troubleshoot the issue. The chatbot can also provide step-by-step instructions to resolve the problem or suggest contacting customer support for further assistance.

Additionally, the chatbot can learn from previous interactions to improve its responses and provide better solutions in the future. For instance, if multiple customers are facing the same issue, the chatbot can analyze the data and suggest a solution that has worked for other customers in the past. This can help to reduce the response time.

Use Case of Generative AI Chatbot for Telecom #3. Promotion summary

A Generative AI chatbot in Telecom industry can help summarize different promotions available to the user instead of them searching across multiple pages to find all the deals. For instance, when a customer contacts the chatbot for assistance, it can ask the customer if they are interested in promotions or deals. The chatbot can then provide a brief summary of all the promotions that the customer is eligible for, based on their usage history and account information. This can save the customer time and effort and also increase the chances of them taking advantage of the promotion.

Use Case of Generative AI Chatbot for Telecom #4. Billing inquiries

Customers often have questions about their bills that chatbots can’t answer. A Generative AI chatbot could assist customers with billing inquiries. For example, if a customer has a question about a high bill, the chatbot could analyze the bill to determine the reasons for the high charges and suggest ways to lower it. The chatbot could also detect any errors in the bill and suggest corrective actions. Once the chatbot has provided suggestions, a human agent could review the information before committing to any changes to the customer’s account.

Thinking of incorporating Generative AI into your Telecom chatbot? Validate your idea with a Proof of Concept before launching. At Master of Code Global, we can seamlessly integrate Generative AI into your current chatbot, train it, and have it ready for you in just two weeks.

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Benefits of Generative AI Chatbot in Telecom

In continuation of the examples and use cases of Generative AI chatbots in the Telecom industry, we will further explore the wide-ranging benefits and practical applications of these advanced chatbots. By examining their ability to enhance customer support, improve efficiency, and revolutionize user experiences, we aim to provide a comprehensive understanding of how generative AI chatbots are reshaping the telecommunications landscape.

Benefits of Generative AI Chatbot in Telecom
Benefits of Generative AI Chatbot in Telecom

Benefits of Generative AI integration to your existing chatbot for Telecom

  • Dialogue diversity: To better serve a geographically diverse customer base, chatbots can provide translation services to customers who speak different languages. Generative AI chatbot can enable real-time translation for customers who speak different languages, allowing them to access support and information in their native language, which can eliminate language barriers and improve the overall customer experience.
  • Faster Response Time: Generative AI Telecom chatbots can provide instant responses to customers, allowing them to quickly get the information they need without waiting on hold. This improves customer satisfaction and reduces frustration.
  • Efficient Billing Support: Generative AI chatbots can also be programmed to send automated billing reminders to customers before their due date. This can reduce the likelihood of missed payments and late fees. The chatbot can also provide helpful information such as the total amount due and available payment methods.
  • Enhanced Sales and Marketing: Chatbots powered by Generative AI can provide insights into customer behavior and preferences that can be used to inform marketing and sales strategies. By learning from customer interactions, chatbots can adapt to the unique needs and preferences of individual customers, creating a more effective sales and marketing experience.
  • Multimodal Capabilities: With Generative AI Telecom chatbots can use natural language processing and computer vision to analyze and interpret different forms of information, such as text, photos, and voice. For instance, a chatbot can recognize a photo of a product that a customer is interested in and provide more information or suggest similar products. It could also respond to voice commands and provide information without the customer having to type anything. This allows chatbots to engage with customers in a more interactive and immersive way, providing a more enjoyable experience.
  • Reduced Call Volume: Chatbots powered by Generative AI can handle a large volume of inquiries at once, reducing the number of calls to customer service representatives. This saves time for both the customers and the company, allowing customer service representatives to focus on more complex inquiries.
  • Improved Self-Service Options: By analyzing and learning from a customer’s usage patterns (such as frequency and duration of calls, texts, and data usage), Generative AI chatbots can recommend specific plans or add-ons that best suit their needs. This allows for a more efficient self-service experience, without the need to wait for customer service representatives.

Implementing a Generative AI chatbot in Telecom industry can offer numerous benefits for both customers and companies. By providing personalized and efficient customer service, such chatbots can increase customer satisfaction, reduce churn rates, and ultimately lead to increased revenue for Telecom companies.

According to The Brainy Insights, the Generative AI market was valued at USD 8.65 billion in 2022 and is expected to reach USD 188.62 billion by 2032. The global Generative AI market is projected to grow at a compound annual growth rate (CAGR) of 36.10% between the forecast period of 2023 and 2032. As technology continues to advance, it is likely that we will see even more innovative applications of Generative AI in Telecom industry, further enhancing the customer experience and driving business success.

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