Telecom leaders globally are increasingly viewing artificial intelligence as a major source of future revenue, but the industry continues to face a significant execution gap in translating AI ambitions into scaled deployments, according to a new survey by HCLTech and Mobile World Live.
The Telecom Pulse Survey Report, based on insights from nearly 200 senior executives across network operators, mobile virtual network operators (MVNOs), communication service providers (CSPs) and original equipment manufacturers (OEMs), highlights the challenges facing the sector as it seeks to transition from traditional telecom operators to AI-native technology companies.
While 60% of telecom leaders identify AI as a key driver of future revenue, only 25% believe their organisations are ready to operationalise AI at scale.
The gap points to persistent challenges around legacy infrastructure, cloud-native modernisation and availability of the skills required to build and deploy AI-driven services.
Connectivity business faces pressure
The survey also highlights growing pressure on conventional telecom revenue models.
Nearly 70% of respondents agree that connectivity services are increasingly becoming commoditised, increasing the need for telecom companies to develop differentiated digital services and platform-led business models.
However, the industry’s ability to innovate rapidly remains constrained. Nearly 80% of respondents said their organisations launched fewer than five new digital products or services during the past year.
This suggests that while telecom companies recognise the need to move beyond connectivity, product engineering capabilities and time-to-market remain significant barriers to that transition.
Partnerships emerge as AI accelerator
The survey identifies ecosystem collaboration as another important factor in accelerating telecom innovation and monetisation.
Nearly half of telecom leaders cited partnerships with hyperscalers, AI platform providers and software vendors as essential to speeding up innovation and creating new revenue opportunities.
At the same time, the way companies measure the success of AI and digital transformation remains largely focused on cost optimisation, with operational efficiency continuing to dominate performance metrics.
This creates a potential disconnect between the industry’s ambition to use AI as a revenue engine and the current emphasis on efficiency-led returns.
The shift towards AI-native TechCos
HCLTech Chief Growth Officer and Global Head of Telecom, Media and Technology, Anil Ganjoo, said: “The telecom industry is at a defining moment as AI transforms networks into intelligent, platform-driven ecosystems and this research recognizes that connectivity alone is no longer sufficient to sustain growth. HCLTech’s AI-intrinsic approach helps telcos accelerates the shift to become TechCos, further scaling innovation and embracing AI-native and autonomous operations.”
The findings suggest that telecom companies face a dual challenge: modernising their technology foundations while simultaneously developing new products and revenue models around AI.
For an industry where connectivity is becoming increasingly commoditised, the ability to combine AI, cloud-native infrastructure, ecosystem partnerships and faster product development could determine how quickly telecom operators evolve into broader technology-led businesses.