This year’s Mobile World Congress (MWC) was abuzz with innovation. As suspected, AI news has dominated the headlines as telcos work to understand how to harness the power of this technology for innovation and growth. Yet, amid the noise of cutting-edge advancements in network optimization, connectivity, and device improvements, one critical conversation appeared to be quietened by the noise: AI in customer service.While telcos continue to invest heavily in AI-driven efficiencies—enhancing network performance, reducing operational costs, and even personalizing marketing campaigns— the discussion was minimal around AI’s most immediate and game-changing application: transforming customer service. This represents the industry’s biggest untapped opportunity in 2025 to differentiate in a highly competitive market.
The telecoms industry is at an AI crossroads
Telcos are at a critical inflection point. Competition is fiercer than ever, customer expectations are at an all-time high, and brand loyalty—especially in telecom—is rapidly eroding. While infrastructure investments and spectrum expansions remain fundamental, the real battleground for differentiation has shifted to customer experience (CX).We've heard plenty about AI-enhanced predictive maintenance, AI-driven cybersecurity, and AI-powered data monetization. Yet, little attention has been given to the most pressing and immediate challenge: resolving the long-standing customer service frustrations that have plagued telcos for years. From long wait times and fragmented omnichannel experiences to the endless repetition of information to multiple agents, these issues aren’t just pain points—they're a strategic blind spot.That’s not to say customer service was entirely overlooked. New research from Capgemini, released at MWC, reveals what business customers truly want from their telecom providers. The findings are striking: only 27% of organizations believe their telco providers currently deliver exceptional CX, and half are willing to pay a premium for an improved experience. This underscores a massive, yet largely untapped, opportunity for telcos to accelerate growth, exceed customer expectations, and innovate in ways that matter to both businesses and end users.The good news? AI is uniquely positioned to address these pain points—delivering immediate, transformative impact where it’s needed most.
AI in customer service: The most underrated AI opportunity for telecoms
Over the next 12 months, the biggest opportunity for telecom operators to differentiate themselves lies in AI-driven customer service transformation. When implemented effectively, AI can eliminate the frustration of long wait times, elevate digital self-service to meet customer expectations, and enable hyper-personalized services and offers.Unlike other AI applications that require years of development or complex regulatory approvals, the good news is these AI-driven solutions including intelligent self-service, real-time agent guidance, and predictive customer resolution are already delivering measurable value for enterprises across industries. NiCE is helping many of these enterprises today.
What AI-powered CX looks like in telecoms
Telecom operators have access to vast amounts of customer interaction data, but AI isn’t just about analyzing that data—it’s about transforming customer interactions in real-time.
1. Proactive AI-driven self-service
AI can identify patterns and anticipate customer issues before they arise, enabling telcos to proactively offer solutions before customers even need to reach out. Whether detecting potential service disruptions or flagging customers at risk of churn, AI helps resolve issues before they escalate. Even better, these resolutions can be delivered through automated messaging and AI-powered virtual agents, allowing customers to self-serve efficiently. From troubleshooting connectivity issues to managing billing inquiries or upgrading plans, AI enables a more seamless and proactive service experience than ever before.
2. Real-time agent assistance
AI is now a powerful co-pilot for human agents, providing real-time guidance to surface relevant information, recommend the next best action, and assist in navigating challenging interactions. By reducing call handling times and improving resolution rates, AI allows agents to focus on what truly matters—delivering a more empathetic, human-centered service.
3. Automation at scale
Many telcos struggle with fragmented customer service operations, leading to unnecessary friction. While individual point solutions have promised to solve key challenges, they often create a "Frankenstack" effect—adding complexity rather than reducing it, as workflows, teams, data, and systems become increasingly siloed. Simply layering AI on top of this disconnected infrastructure won’t work. The right AI platform unifies and automates workflows, agents, and knowledge across the entire customer service organization—from intent to fulfilment—allowing each component to learn from the other and continuously improve. This not only enhances the customer experience and boosts NPS scores but also drives significant efficiency gains across operations.
Real-world examples of AI in telecom customer service
Telecom providers worldwide are already leveraging AI and automation to revolutionize customer service. One standout example is Tbaytel, a telecommunications provider in Northern Ontario offering TV, internet, phone, security, and mobility services.By implementing NiCE’s AI-powered platform, Tbaytel transformed its approach to customer feedback, enabling near real-time measurement, monitoring, and reporting on customer experience—resulting in a 149% increase in NPS.Tbaytel utilized NiCE to identify opportunities for coaching, training, customer relationship management, and process improvements. If a customer indicated dissatisfaction, Tbaytel could analyze the call, assign an agent to follow up and take proactive steps to rebuild the relationship. This, of course, resulted in a dramatic increase in customer loyalty and satisfaction as well as the ability to offer exceptional experiences.With NiCE, Tbaytel can continue building on its legacy of providing outstanding customer service, and so many other telcos could follow in its footsteps.
Why telecoms can’t afford to ignore AI in customer service
The telecoms industry has long been at the forefront of technological innovation. Yet, when it comes to customer service, it lags industries like retail and banking, both of which have aggressively embraced AI to enhance customer service. If telcos don’t act now, they risk losing customers to digital-first competitors who put AI-powered experiences first.Here’s the reality: customers care about seamless, effortless interactions. They want to resolve their issues quickly and without friction. They expect the same level of intuitive, personalized service they receive from tech giants like Netflix, Amazon and Apple.At MWC 2025, we saw incredible AI advancements—but the real game-changer for telecoms in the next 12 months won’t be found in the core network. It will be in delivering AI-driven customer service experiences that finally meet customer expectations.
The path forward: Prioritizing AI-driven CX
Telcos that recognize this shift and act now will be the ones who win the next era of customer loyalty. The good news? The technology is already here. The challenge is execution.At NiCE, we’ve seen firsthand how AI-powered CX solutions can transform businesses. The question isn’t whether AI can improve customer service—it’s whether telcos will prioritize it in time to gain a competitive edge. The biggest opportunity is right in front of us. Now, it’s up to telecoms leaders to seize it.Learn more about our industry leading customer service AI platform, CXone Mpower.
