Generative AI (GenAI) is transforming industries at an unprecedented pace, and telecoms is not immune. Ours is a sector where the battle for relevance is won and lost on customer experience, efficiency, and innovation.
Telcos face a perfect storm of challenges: shrinking margins, fierce competition, high churn, and complex omnichannel journeys. At the same time, customers expect instant answers, personalized recommendations, and seamless experiences - no matter how or where they engage.
Generative AI is emerging as a way to meet these expectations at scale while streamlining internal processes, lowering costs, and opening new revenue opportunities.
In this edition of Telco Talk, we’ll explore how generative AI is supercharging selling and customer support and examine which carriers are successfully using these strategies today.
1. Personalized Omnichannel Experiences
In the hyper-competitive telco market, a one-size-fits-all approach no longer cuts it. Customers expect every interaction, whether online, in-app, or in-store, to reflect their individual needs and preferences.
Generative AI enables telcos to move beyond static marketing segments by dynamically analyzing browsing behavior, plan usage, purchase history, and even engagement patterns in real time.
With this data, AI models can create tailored plan recommendations, device upgrade offers, and promotional bundles that feel curated for each individual.
And this personalization doesn’t stop at digital touchpoints - these insights can flow seamlessly into physical retail. Imagine walking into a store where the associate already knows your handset is due for an upgrade and greets you with a plan tailored to your usage profile.
Example: Vodafone’s youth-focused VOXI brand is pushing the envelope here. Partnering with Accenture, VOXI launched the UK’s first large language model chatbot, powered by ChatGPT. This AI assistant can hold human-like conversations, handle complex multi-step inquiries, and instantly surface personalized offers across VOXI’s digital platforms. Instead of navigating menus or FAQs, customers get a conversational experience that adapts to their needs in real time.
2. AI-Enhanced Customer Support
Customer service has traditionally been a costly and time-consuming pain point for telcos, especially in high-volume contact centers. Generative AI is transforming support by taking on routine requests, reducing unnecessary handoffs, and arming human agents with instant context for faster resolution.
Voice-based AI assistants can now replace clunky IVR menus with natural conversation, helping customers get to the right solution without endless button-pressing. In stores, AI can work behind the scenes to feed associates relevant product details, troubleshooting steps, and customer history, turning them into confident problem-solvers on the spot.
Example: Orange has rolled out a voice-driven AI assistant known as the Callbot, designed to replace traditional IVR menus. It has already reduced live agent call transfers by 30% and offloaded 20% of inbound calls entirely to the bot, freeing human agents to focus on more complex interactions.
3. In-Store Assistance
While digital channels are critical, physical retail still plays a major role in telco sales and service. Generative AI is transforming these spaces by making them smarter, more interactive, and less dependent on manual processes.
One of the biggest opportunities is how it can empower staff to deliver fast, informed, and personalized service. GenAI puts product knowledge, promotions, and the answers to complex questions at their fingertips. This reduces training time and keeps customer conversations moving.
Example: In a 2024 pilot program rolled out in select flagship stores, Verizon introduced GenAI-powered concierge tools to assist both customers and staff. These tools use conversational AI to help shoppers find plans, compare devices, and navigate upgrades - all with natural language and real-time personalization.
4. Predictive Inventory & Supply Chain Optimization
Few things frustrate a customer more than visiting a store for a specific item, only to find it’s out of stock. Generative AI helps solve this by improving demand forecasting and inventory allocation across all retail channels.
By combining historical sales data, promotional calendars, and even local events or economic indicators, AI can accurately predict demand spikes and ensure stock is in the right place at the right time. This reduces lost sales, minimizes overstock, and improves working capital efficiency.
Example: AT&T is using AI-automation to improve their forecasting, automate procurement, predict shipping delays, and more. They’ve enjoyed cost savings, faster shipping times, reduced disruptions, and improved quality control.
Final Thoughts
Generative AI isn’t a futuristic concept - it's already embedded in telco retail strategies. Telcos that act now will gain a competitive edge that will shape the industry for years to come.
The takeaway is clear: telcos that use AI to personalize, empower, and make predictions will be the ones customers trust - and the ones that win.
