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AI in telecoms walks a tightrope between immense opportunity and an increasingly complex web of global regulations.
The technology is now deeply embedded in virtually all aspects of a telco’s business, from network optimisation and predictive maintenance to customer service and fraud detection. However, for telecoms operators, simply reacting to new rules is a strategy doomed to fail. Instead, the industry must proactively shape its own future by championing ethical and responsible AI.
According to Omdia, telcos must contend with formal AI regulation from at least two jurisdictions: the EU and South Korea. Both have adopted a risk-based framework, where the most stringent rules are reserved for the highest-risk AI applications.
This sensible approach, however, masks differences. The EU AI Act, for instance, casts a wide net, applying to users of AI systems. South Korea’s Basic AI Act is more narrowly-focused on the developers and entities providing the AI-powered products and services.
This divergence is just the beginning of a complex global patchwork. While other nations have started their own regulatory processes with public consultations, it could be some time before many of these efforts are finalised and implemented. This creates a challenging and uncertain environment for multinational telecoms operators to ensure they’re compliant with AI regulations.
Sarah McBride, Principal Analyst for Regulation at Omdia, said: “The overarching impact of these two regulations on telcos is the creation of more compliance work and costs to meet the new legal requirements for safety standards.”
This requires a fundamental shift in how AI systems are developed, deployed, and managed across diverse and often conflicting legal environments.
Understanding the core AI risks
Beyond just the telecoms industry, lawmakers globally are trying to balance the benefits of AI against the risks with varying degrees of regulation. These challenges could undermine customer trust and operational integrity.
The core issues revolve around the quality and nature of data, accountability, and security. Key risks include the availability of unbiased and reliable data, the cybersecurity implications of interconnected AI systems, and persistent privacy issues.
Another key challenge is establishing liability when something goes wrong, a particularly thorny issue given the complexity of modern AI ecosystems. Making sure the decisionmaking processes of these systems are explainable and transparent is another hurdle to overcome.
“Telcos must navigate key AI regulatory requirements across multiple policy areas, including high-risk situations, prohibited use, transparency, and enforcement,” McBride explained. “They also face AI-specific policies and regulations regarding data and privacy, critical infrastructure security requirements, consumer protection measures, and digital sovereignty considerations.”
The message is clear: AI governance must be woven into the very fabric of an organisation.
From AI regulations compliance to telecoms industry leadership
Faced with this regulatory maze, a reactive stance is simply not viable. Waiting for every jurisdiction to finalise its rules before acting is a recipe for falling behind. The most sensible path forward is for telcos to seize the initiative. Omdia believes it would be wise for operators to “proactively implement a risk-management framework within their systems and take the lead in driving ethical and responsible AI technology.”
This involves moving beyond a purely legalistic view of compliance and promoting a culture of ethical AI development. It means establishing internal standards that meet and exceed the highest regulatory bars being set globally.
By doing so, telcos can create a consistent, responsible framework that can be adapted to specific local requirements as they emerge, rather than constantly rebuilding their approach from scratch. The successful adoption of AI in the telecoms sector will depend on this delicate balance.
“AI offers numerous opportunities for telco innovation, but risks must be assessed thoroughly before implementation, and standards for data quality, accuracy, robustness, and non-discrimination must be adhered to,” said McBride.
The operators that thrive in this new era will be those that view regulation not as a burden, but as a guidepost for building trustworthy and sustainable innovation. By leading the charge on responsible AI with a clear strategy rather than reactive compliance with regulations, telecoms operators can secure their own success and shape a more trusted future for everyone.
See also: How the 6G rollout will learn from 5G’s mistakes
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