The telecommunications industry is experiencing significant AI advancements, emerging as the leading adopter of generative and agentic AI to drive automation, personalization, and data-driven decisions. According to a recent IDC white paper, telecom and media companies are seeing nearly four times the return on investment (ROI) on every dollar invested in AI. Additionally, by 2027, almost 90% of telecom providers are expected to use generative AI to improve customer experiences, up from 62% today.
96% of our tier-1 telecom customers are already adopting Microsoft AI solutions. Our ecosystem of customers and partners are harnessing the power of AI to reimagine customer experiences, modernize networks, automate business operations, and drive growth.
Ahead of Mobile World Congress 2025 (MWC), we’re sharing new capabilities and customer momentum that show how telecoms are adopting the Microsoft Cloud and AI capabilities to support their AI journey and empower the next generation of telecom solutions.
We invite you to join us next week at MWC to learn more about our new announcements and see firsthand how Microsoft AI is transforming the telecom industry. Experience live demos, attend insightful sessions, and meet our experts to learn how you can drive innovation and growth with Microsoft AI technologies.
Data is the fuel that powers AI: Telco data model
Telecom networks are recognized for their complex, data-rich environments. This data is the fuel that powers AI and forms the foundation upon which next-generation telecom systems are built. To convert this massive potential into actionable intelligence, organizations need a unified platform that can seamlessly connect, manage, and analyze their data. Microsoft Fabric is the end-to-end data platform designed to power customer AI transformation and help organizations reimagine how they unlock value from their data and revolutionize the services they offer.
Today we announce the Telco industry data model in Microsoft Fabric, designed to unify all data—from network performance metrics to customer interactions, within a single analytics environment. As an integral Fabric workload, telecom providers can use the Telco industry data model to manage and streamline how all their data is ingested, modelled, and analyzed through:
- Native Fabric integration—a unified pipeline within Fabric’s analytics, governance, and visualization framework means faster time to market, with better insights.
- Expanded data model—pre-built telecom-specific schemas covering network data, customer insights, and operational metrics drives operational efficiency.
- Developer and visualization tools—simplified, AI-ready solution building that dramatically reduces development and testing time, making networks more resilient.
More than 50% of our telecom customers are leveraging Fabric for real-time business insights to optimize business and network operations. Leading customers like Telefónica, KPN, One NZ, and partners like Accenture, Infosys, and LigaData are using Fabric to achieve business results. The broader customer adoption for Fabric is more than 19,000 customers, including 70% of the Fortune 500. The Telco industry data model in Microsoft Fabric enables telecoms to establish a strong data foundation to unlock AI-powered insights that fuel innovation, operational efficiency, and greater value across the entire organization.
“Microsoft Fabric, powered by Telco data model and AI capabilities, has revolutionized our solutions by providing real-time insights throughout the customer journey, potentially increasing operational efficiency by 40%. Our solution offers preventive insights across the entire order lifecycle and its auto-healing capability for enhanced jeopardy management, significantly improving the management of complex B2B orders and enhancing the customer experience.”
The Telco industry data model in Microsoft Fabric will be available early in April 2025.
Telecom customers around the world are taking advantage of the cloud and AI in new and innovative ways. The collaborations we recently announced with KT Corporation, Lumen, Telstra, and Vodafone demonstrate how telecoms are innovating to elevate customer experiences, streamline business operations, modernize networks, and unlock new revenue streams. Additionally, we’re introducing new collaborations with top telecom providers that exemplify how they’re building the foundation to successfully implement AI, benefiting their organization, employees, and customers.
- Spark, New Zealand’s leading telecom provider, is joining forces with Microsoft in the country’s largest Microsoft public cloud partnership, highlighting how AI and the Cloud are helping to transform telecom worldwide. Spark will migrate a portion of its workloads to Microsoft Azure and roll out one of New Zealand’s largest Microsoft 365 Copilot deployments. For more, read the press release.
- Microsoft and Telefónica are extending their strategic collaboration to co-develop digital solutions using Open Gateway, a GSMA-led initiative that transforms communication networks into programmable platforms via Telefónica’s AI platform, Kernel. Both companies will work together to migrate Kernel’s capacities to Azure as part of a software as a service (SaaS) offering. The collaboration also encompasses a joint go-to-market strategy, which will bring a suite of digital products and services to other telecoms, developers, and telecom entities—available on Azure Marketplace and integrated into Microsoft’s overall telecom solutions. For more, read the press release.
We are also announcing that Surface for Business with 5G devices and Microsoft 365 Copilot will be available in all Verizon Business channels starting in April 2025. This launch marks a decade of partnership between Microsoft and Verizon Business, offering cellular connected Surface for Business devices and Microsoft services. Customers are choosing Surface Copilot+ PCs today for their exceptional performance, battery life, and security. Now, with the Verizon 5G network, the combination of Surface and Microsoft 365 Copilot offers an unparalleled mobile experience for business customers. For more, read the Surface IT Pro blog.
Telecoms accelerate growth in the next wave of AI: Agentic AI
As the AI platform shift accelerates, it’s inspiring to see customers and partners harness AI, generative AI, and agentic AI to drive transformation—reshaping both their businesses and the industry at large.
Elevating customer experiences
A recent IDC white paper showed AI-powered customer engagement is a top priority for businesses, with 92% of organizations currently using AI for marketing and public relations (PR) and 77% using it for customer service. Telecom providers are delivering frictionless customer experiences with AI-infused customer care at-scale with Dynamics 365. With a comprehensive view of the customer, telecoms obtain real-time insights into accounts and next-best actions to take. They also enable their customers through AI-powered automation for self-service. Additionally, Amdocs has created the Customer Engagement Platform that is fully integrated with Dynamics 365, to reimagine customer experience and identify new revenue opportunities for telecoms.
Since last MWC, we announced Dynamics 365 Contact Center, a powerful solution that works with existing customer relationship management systems (CRMs) and unifies interactions, streamlines support, and boosts customer satisfaction. With this solution, consumers can engage and self-serve in their channel of choice while reps can handle billing and tech issues faster with a single view. Built-in Copilot capabilities and real-time analytics drive improvements and upselling, enhancing loyalty, and revenue.
Leading telecoms are also reimagining how they connect with customers by harnessing Microsoft 365 Copilot to capture real-time transcripts, gain contextual insights, and automate repetitive tasks. This reduces handling times, freeing representatives to tackle more complex customer needs.
Here are some examples of how telecoms customers are using Microsoft AI technologies to transform their business and reimagine customer experiences:
- Telkomsel’s AI-powered solution Veronika, built on Azure and introduced at the end of 2023, is delivering impressive results. Telkomsel has increased self-service interactions by 62% and cut escalations to agents by 38%. The average monthly active users of Veronika also grew by 67%, rising from 1.3 million in the first half of 2023 to 2.2 million in the second half. These improvements have boosted agent productivity and service quality, making for a smoother, more efficient customer experience.
- Vodafone is harnessing Microsoft 365 Copilot to empower 68,000 employees to boost productivity, innovation, and quality. They are also leveraged Azure OpenAI Service, Azure AI Studio, Kubernetes Service to develop Tobi and SuperAgent to empower their agents with real-time AI support to improve customer experience, decrease churn, and provide competitive advantage. This improved first-time resolution from 70% to 90%.
- Lumen is leveraging Microsoft AI solutions to empower their employees and improve customer service.
“Lumen is building the trusted network for AI. By scaling our AI capabilities with tools like Copilot, Azure AI, and Azure ML, we’re empowering our employees to tackle complex challenges and prioritize high-impact activities that enhance customer experiences and satisfaction. As we navigate our transformation, Microsoft’s AI tools are essential in supporting our objectives and sustaining our competitive advantage.”
Ryan Asdourian, Executive Vice President and Chief Marketing Officer, Lumen Technologies
Optimizing operations and modernizing networks
To keep pace with increasing business demands, leading telecoms are optimizing business operations and modernizing their networks with AI and an integrated data backbone.
Here are examples of how customers are using Microsoft AI capabilities to drive operational efficiency, innovation and growth:
- AT&T automates code conversion and human resources (HR) inquiries with Azure OpenAI Service, improving employee experience, cutting costs and boosting customer service.
- KT Corporation is leveraging Microsoft AI to drive efficiency and innovation.
“The Microsoft AI-driven solutions have enabled KT Corporation to improve its work efficiency and drive significant work innovation. By introducing Microsoft 365 Copilot, KT Corporation empowered over 11,000 employees with the latest AI solutions. Additionally, by developing AI agents built on solutions such as Microsoft Sustainability Manager and Copilot, KT reduced task completion time by 50% and improved infrastructure efficiency by 20%.” Phil Oh, CTO, KT Corporation
- Proximus and TCS’s GitHub Copilot journey showcases how Microsoft generative AI accelerates IT delivery in telecom, improving productivity, code quality, and developer experience.
“In terms of developer experience, that’s where we got phenomenal, satisfactory feedback from developers—about 90% plus positive feedback from all categories of developers.”
Muralidharan Murugesan, Head – AI, Telco, Media & Information Services Industry, TCS
- NTT DATA is leveraging Microsoft AI to build agentic AI workloads.
“NTT DATA leverages Microsoft Copilot Studio to deliver agentic AI advisory, implementation, managed services, and connectivity. By providing industry-specific automation and utilizing our integrated managed services platform, we support clients throughout their agents’ lifecycle. This collaboration is pivotal in achieving our clients’ outcomes, enabling us to deliver tailored, efficient, and innovative solutions that drive business success and enhance decision-making processes.”
Aishwarya Sing, SVP, Global Head of Digital Collaboration, NTT
- One NZ is using Microsoft Fabric for real-time analytics from unified data sources. With the integration of multiple systems and visualizing insights on a single pane, One NZ has rapidly streamlined processes and proactively addressed growth opportunities:
“Previously, you needed to be a data engineer or scientist to access and understand customer information. Now we’re making it user-friendly, so anyone can easily make data-driven decisions.”
Strathan Campbell, Channel Environment Technology Lead, One NZ
- Telstra scales in-house generative AI tools, saving 90% of employees’ time and reducing follow-up contacts by 20%.
Unlocking new revenue streams in the enterprise
A recent IDC white paper reports that 63% of telco and media companies say they are currently monetizing or using AI to boost revenue. As a trusted partner, beyond supporting their own transformation, we equip telecom providers with comprehensive business-to-business (B2B) offerings to drive topline growth and better serve their enterprise customers.
For example, AT&T’s collaboration with Microsoft is reimagining enterprise connectivity. AI applications and AT&T’s connectivity are tackling the USD112 billion annual retail shrinkage issue head-on. By integrating Azure IoT with AT&T’s 5G network and leveraging Teams Phone Mobile for notifications, retailers receive alerts that minimize loss and ensure safer shopping experience. AT&T’s move into AI-powered connectivity has created new revenue streams, spanning cost savings, compliance, and collaboration.
“AT&T is a leader in enabling innovative AI solutions and continues to expand capabilities through our relationship with Microsoft. We’re excited to integrate Microsoft’s AI capabilities into our retail crime intelligence platform, which utilizes near real-time notifications via Teams Phone Mobile. This collaboration underscores the commitment of both companies to enhance retail security and contribute to a safer shopping environment for both employees and customers.”
Another partner, Norwood Systems, is extending traditional voice services with
