Will AI and automation lead to telco job cuts? – TelecomTV

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For years it’s been the question that many have wanted to dodge: Will the increasing use of AI and introduction of associated automation at network operators lead directly to headcount reductions at telcos?

With financial pressures weighing heavily on the telco community, finding ways to improve productivity and cut costs is increasingly important and AI looks like a way to potentially achieve both goals. So far, few telcos have addressed the relationship between AI-enabled automation and their staffing requirements, though there are exceptions: When in 2023 BT Group announced its long-term headcount plans, it noted that of the job cuts it expects to make by the end of this decade, 10,000 roles will be affected by “digitisation, automation… using technology to do things much more efficiently”. Philip Jansen, who was BT’s CEO at the time, specifically discussed the expected impact of AI on staffing requirements – see BT to cut up to 55,000 jobs in AI-enabled efficiency drive.

So what’s the general feeling about such developments in the telco community? As part of our recent survey of network operator staff for our AI-Native Telco Strategies report, we asked: Will the increasing use of AI and introduction of automated processes lead directly to headcount reductions/job losses at your company? 

We received responses from 64 individuals representing more than 45 telcos from almost all regions of the world.

As you can see from the chart above, the jury is out on this matter, with only 44% of our telco respondents believing their employer will cut jobs as a direct result of automation and the use of AI, while 31% don’t believe this will be the case. 

That a significant 25% of those who took our survey are not sure shows what a tricky subject this is: Telco executives often say that deploying AI will enable them to make more productive use of their staff (to be more proactive and less reactive), but the jury is still out on whether that will play out or not. 

We also asked our respondents if they thought their own job was at risk as a result of the increasing use and influence of AI, and the result was staggering, with 86% believing AI is not a threat to their role. Wishful thinking, perhaps?

You can see the full results related to that question, plus many other insights into how telcos are considering the use and impact of AI, in the 25-page report, which can be downloaded for free here. 

For additional views into the topics raised in the report, check out our video panel discussion, AI-Native Telco Strategies: A DSP Leaders report panel discussion.

And you can keep up to speed with the key related developments at our dedicated Telcos & AI channel.  

– Ray Le Maistre, Editorial Director, TelecomTV