Exploring the role of AI to improve Analytics within Telco organisations

Abstract

The rapid rise of the Fourth Industrial Revolution (4IR), driven by AI, IoT, and robotics, is transforming industries globally. In South Africa’s telecommunications (SA telcos) sector, the data explosion from mobile usage, network monitoring, and IoT applications present both opportunities and challenges. Despite being one of the fastest-growing ICT sub-sectors, the SA telco industry has struggled with customer sentiment, consistently ranking lower than banking, insurance, and retail in recent years. AI and Business Analytics (BA) can enable real-time, automated insights, but South African telcos face challenges like fragmented systems and complex data management. Notably, 87 percent of big data and AI projects never reach implementation, emphasising the need for strategic AI adoption. This study examines AI’s role in enhancing analytics within SA telcos, focusing on adoption factors, benefits, and challenges. Using the Technology-Organisation-Environment (TOE) framework, a qualitative, inductive approach was employed, gathering insights from 15 key stakeholders across three major SA telcos. Findings reveal that strategic roles influence AI initiatives, operational roles bridge adoption gaps, and technical roles drive implementation, also suggesting that organisations should consider their unique environment, challenges, and objectives when implementing AI to maximise its benefits. By synthesising literature and industry insights, this research aims to minimise the gaps in existing knowledge and provides actionable recommendations. The findings offer valuable guidance for telco executives, policymakers, and scholars navigating AI adoption in SA’s evolving digital economy.