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A survey by PwC India, titled ‘GenAI in Technology, Media, and Telecommunications (TMT): From Concept to Reality’ reveals that 58 per cent of organisations in the TMT sector view Gen AI as a long-term disruptor with transformative potential. The report examines the current utilisation of Gen AI and its anticipated effects on TMT companies in India. It also delves into adoption levels, use cases, implementation strategies, operational impacts and possible challenges associated with Gen AI.
Most TMT CEOs in India have recognised Gen AI as one of their top five strategic priorities, with nearly 42 per cent placing it in their top three. CEOs in the technology sector anticipate much greater disruption than those in the telecom and media sectors. Among technology companies, 68 per cent of respondents consider Gen AI a long-term disruptive force, followed by media and entertainment at 51 per cent and telecom at 40 per cent.
Manpreet Singh Ahuja, TMT Sector Leader and Chief Digital Officer at PwC India commented, “Gen AI is rapidly revolutionising the TMT sector, with each industry finding unique applications for the technology. In the technology sector, Gen AI is driving product development and system integration, with 80 per cent of companies already leveraging AI solutions. Media and entertainment firms are focusing on content generation and are using Gen AI to create audio, video and text, with significant implementations expected within a year, while telecom companies are utilising Gen AI for real-time operational support, including automated fault detection and AI-powered digital assistance. These use cases are transforming business models, enhancing customer experiences and unlocking new efficiencies across the sector."
Key findings from the survey include several insights into the strategic importance and adoption of GenAI in the TMT sector.
Strategic Importance of Gen AI: Approximately 65 per cent of TMT respondents have already implemented at least one Gen AI application, with nearly half of these companies developing a comprehensive strategic roadmap for Gen AI implementation. Within the TMT sector, the technology segment leads in adoption, with around 80 per cent of organisations having deployed their first Gen AI solution.
Adoption by Sector: Among companies that have rolled out their initial Gen AI solution in the technology, media and entertainment sectors, the primary focus is on product and service enhancement with adoption rates at 97 per cent and 80 per cent, respectively. In contrast, the telecom sector places a stronger emphasis on cost optimisation, with a full 100 per cent of respondents highlighting this priority.
Return on Investment (RoI): About 40 per cent of C-suite executives in the TMT sector, particularly in technology and telecom (44 per cent and 40 per cent respectively), are already observing benefits from their Gen AI initiatives and are on track to achieve the expected return on investment. Furthermore, 32 per cent of executives in the technology sector anticipate realising their desired RoI within the next year. However, 30 per cent of telecom sector respondents remain uncertain about when they will achieve the expected RoI.
Challenges in Adoption: As Gen AI becomes more autonomous, concerns regarding control, safety and accountability are becoming increasingly prominent. Companies face significant challenges related to addressing ethical issues such as bias and discrimination, preventing misuse and overuse, protecting data privacy and copyright and ensuring transparency and explainability in complex algorithms. While 87 per cent of organisations conduct board-level reviews, 67 per cent admit that their policy frameworks are insufficient to effectively address security concerns. Additionally, 62 per cent of companies have increased funding for employee initiatives aimed at promoting GenAI adoption.
“The adoption of GenAI can lead to a major transformation in the telecommunications sector. By incorporating GenAI, companies will be able to improve operations and customer satisfaction. This technology is also crucial for reshaping operational structures and achieving greater efficiencies, establishing new benchmarks in customer engagement and achieving operational flexibility within the sector”, added Ahuja.
The survey highlights the necessity of a strategic approach to integrating Gen AI, recommending careful evaluation of use cases, effective resource allocation and the cultivation of industry collaborations to maximise GenAI's potential.
Within the TMT sector, technology companies demonstrate a greater awareness and utilisation of Gen AI. Its influence is anticipated to extend across various facets of the telecom industry, including marketing, customer service, data analysis and product development. Additionally, Gen AI is poised to assist media and entertainment as well as technology companies in delivering personalised content for users of all ages, streamlining the content development process, and exploring innovative concepts.
