By 2022 Telco Masters Can Save $1.2 Billion from Telcobots
November 24, 2017 | ABI ResearchEstimated reading time: 1 minute
New wave telco virtual assistants, or “Telcobots”, are emerging as telcos increasingly start to adopt artificial intelligence to improve their customer services. While telcos are currently prioritizing these virtual assistants primarily to improve customer engagements and consequently reduce churn rates, they are also positioning themselves to compete directly with the Siris, Cortanas and Alexas of the Webscale giants. ABI Research forecasts that the virtual assistants will enable telcos to save $1.2 billion on customer care management by 2022 with a CAGR of 17% over the next five years.
This is particularly impressive given that telcos were not the early adopters of virtual assistants. “The recent introduction of virtual assistants in customer service signifies the level of urgency within telcos to start emphasizing the importance of customer relationships and customer care management, something they have been taking for granted for decades," says Sarju Vasavada, Industry Analyst at ABI Research. “Case in point, Vodafone released TOBi, a virtual assistant to address their customer service woes after being fined £4.6 million by U.K. regulators Ofcom for falsely charging more than 10k pay-as-you-go customers for top-up credit. They also had a record-breaking number of customer complaints until TOBi stepped in.”
Telcobots now assist customers with a variety of issues ranging from basic account inquiries to SIM purchases, service troubleshooting, and technical settings. Several telcos are leveraging AI and NLP heavyweights, including IBM Watson, Nuance, LivePerson, and IPsoft or are building technology in-house. For example, Telefónica is developing their digital chatbot, Aura for 2018, and DT’s Tinka is already averaging 50k customers in Austria every month. However, the most important point is that telcos are realizing the advantages and benefits of adding virtual assistants to their arsenal for customer service delivery and are aggressive in introducing them throughout their footprint.
ABI Research forecasts that AI investments by telcos will reach US$14 billion by 2022 with a CAGR of 22.4%. The fruits of early AI investments by TIER I telcos are beginning to grow with Orange and SK Telecom, both announcing the release of their multi-talented chatbots, Djingo and Nugu, respectively in early 2018. “Telcos are slowly but steadily getting ready for prime time. We are bullish on telcos making this “Next - Gen” leap within next five years,” concludes Vasavada.
Suggested Items
Intelsat Unveils Terminal Strategy to Power Multi-Orbit Satellite Services
09/16/2024 | BUSINESS WIREIntelsat, operator of one of the world’s largest integrated satellite and terrestrial networks and leading provider of in-flight connectivity (IFC), will be the first operator in the world to offer multi-orbit solutions for all relevant business units by the first half of 2025 thanks to a new satellite terminal strategy that will deliver advanced capabilities and improved economics.
NOTE Signs an Agreement for a New Factory in Lund
09/16/2024 | NOTENOTE has signed an agreement with the property developer Wihlborgs to build a new factory for the operations in NOTE Lund. This will allow for the increasing demand in the coming years. The property will be rented over 15 years.
It’s Only Common Sense: Training Great Customer Service Reps
09/16/2024 | Dan Beaulieu -- Column: It's Only Common SenseIn building a successful business, you can’t ignore customer service. We all know it, but sometimes we overlook it. You could have the best most cutting-edge technology on the market, and a killer marketing plan, but if your customer service stinks, you’re in trouble. I’ve been in this industry for more years than I’d like to count, and one thing I’ve learned is that customer service isn’t just the front line, it’s the lifeline of any business. That’s why it’s only common sense to invest in training great customer service reps (CSRs).
Flex Releases its 2024 Sustainability Report
09/13/2024 | FlexFlex published its 2024 sustainability report, highlighting the company's global sustainability performance and progress from calendar year 2023.
Benchmark Celebrates Grand Opening of New, State-of-the-Art Facility in Penang, Malaysia
09/12/2024 | Benchmark Electronics Inc.Benchmark Electronics, Inc., a global provider of engineering, design, and manufacturing services, celebrated the grand opening of a new facility in Penang, Malaysia.