Marcy’s Musings: The Legislative Outlook—Helping or Hurting?
It’s Only Common Sense: The Phone Is Still Mightier Than the Keyboard
The Marketing Minute: Marketing With Layers
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.
Share on:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
It’s Only Common Sense: The Phone Is Still Mightier Than the Keyboard
10/20/2025 | Dan Beaulieu -- Column: It's Only Common SenseThere’s a dangerous myth that the keyboard is mightier than the phone, and if you blast enough cold emails, send enough LinkedIn connection requests, and fire off enough PDF proposals, customers will eventually buy from you. Let me set the record straight: Cold emails don’t close deals; conversations do.
Technica USA Named Exclusive U.S. Distributor for DCT Cleaning Products
10/14/2025 | Technica USATechnica USA is pleased to announce a strategic partnership with DCT USA, LLC, becoming the exclusive master distributor of DCT cleaning products in the United States, effective November 1, 2025.
It’s Only Common Sense: If You’re Not Differentiated, You’re Dead
10/13/2025 | Dan Beaulieu -- Column: It's Only Common Sense“Good enough” is not good enough in business. Not anymore. “Good enough” is a death sentence in today’s market. Too many companies hide behind their ISO certificates, ITAR registrations, and shiny badges of compliance as if those are supposed to impress customers, but certifications are table stakes. Everyone has them. If you think that’s your differentiator, you’re already in the grave; you just don’t know it.
Catching Up With Mark Wood, Microart Services
10/08/2025 | Dan Beaulieu, D.B. Management GroupMicroart Services has been in business for over 40 years, growing from a design PCB layout company to a full-service EMS company focused on serving its customer base with standard and custom solutions. I’ve heard from my rep friends, their competitors, and even my Canadian PCB friends that Microart is “one of the best EMS companies in North America.” That’s why I decided to speak with CEO Mark Wood to discover the secret to his company's success.
Standard of Excellence: Overcoming Service Failures—The Art of the Apology
10/08/2025 | Anaya Vardya -- Column: Standard of ExcellenceNo matter how refined the processes, how seasoned the team, or how sophisticated the technology, mistakes happen in business. A shipment goes out late. A part doesn’t meet spec. A miscommunication causes frustration. It’s the part of customer service that no one likes to talk about, but every company must master how to respond when things go wrong.