CSPs Optimistic: AI to Boost Network Efficiency

Network benefits

The integration of artificial intelligence (AI) into network operations is poised to revolutionize the efficiency and capabilities of the telecommunications and IT industry. A recent study conducted by Ciena in collaboration with Censuswide revealed that over half of surveyed engineers anticipate a significant improvement in network operational efficiency, with a projected increase of 40% or more [1]. Moreover, an overwhelming 85% of respondents expressed confidence in the ability of Communication Service Providers (CSPs) to capitalize on AI-driven traffic across their networks [2].

Jürgen Hatheier, the International Chief Technology Officer at Ciena, emphasized the importance of embracing emerging technologies like AI to remain competitive in the rapidly evolving digital landscape. He highlighted the survey's findings as a testament to the optimistic outlook of CSPs regarding AI's potential to enhance network performance. Hatheier stressed the necessity for strategic planning and investments in infrastructure and expertise to fully realize the benefits of AI integration.

The study underscores a prevailing belief among industry professionals that AI will play a pivotal role in enhancing network performance. Participants identified the need for innovative solutions across fiber network infrastructure and operations to achieve this goal. Key strategies highlighted in the research include the implementation of new traffic and network analysis software, upgrades in switches and routers, and investments in cutting-edge 800G technology. These initiatives reflect the multifaceted approach adopted by operators to strengthen network capabilities and meet the growing demands of AI-driven traffic [3].

On a global scale, CSPs anticipate that certain sectors will generate the most AI traffic and subsequent revenue opportunities. Financial services emerged as the leading sector, with 46% of respondents identifying it as a key revenue driver, followed closely by media and entertainment (43%) and manufacturing (38%). The study also revealed various avenues through which CSPs envision generating revenue from AI, including opening networks to third-party integrations, offering security and privacy services, introducing new product offerings, creating tailored subscription packages, and differentiating based on quality of service for connectivity.

The research sheds light on the critical role of cloud infrastructure in supporting and leveraging AI technologies across networks. While 43% of CSPs prefer private cloud deployment for AI services, 37% lean towards utilizing public cloud providers' data centers. Interestingly, only 21% of respondents plan to adopt a hybrid cloud model, indicating a diverse range of preferences and strategies within the industry. The study also highlights the anticipated positive impact of AI on job creation within the sector, with 67% of CSPs viewing AI as a catalyst for new employment opportunities. Key areas of expertise identified for developing and launching AI services include cybersecurity, machine learning, and programming/coding.