A global study conducted by Ciena, a networking, hardware, software, and services company, in collaboration with Censuswide, shows a growing optimism among communications service providers (CSPs) toward the potential benefits of artificial intelligence (AI).
The Ciena study indicates that over half of the respondents believe that the implementation of AI could enhance network operational efficiency by 40% or more. An overwhelming 85% express confidence in the capability of CSPs to capitalize on AI traffic across their networks.
The study surveyed over 1,500 telecom and IT engineers and managers across 17 countries, shedding light on their perceptions and expectations regarding AI integration in network operations.
“Understanding emerging technologies like AI is an essential step toward staying competitive in today’s constantly changing digital landscape,” said Jürgen Hatheier, CTO, Ciena International. “The survey highlights the optimistic long-term outlook of CSPs regarding AI’s ability to enhance the network as well as the need for strategic planning and investments in infrastructure and expertise to fully realize the benefits.”
The most common theme from the study is the belief that AI will bolster network performance.
According to Ciena, to achieve this, respondents anticipate the need for new solutions across fiber network infrastructure and operations. Among the strategies considered to enhance performance, upgrading networks with advanced traffic and network analysis software emerged as the most popular choice, selected by 49% of participants, followed by switches and routers upgrades (43%), and investment in 800G technology (40%).
Nearly all respondents (99%) predict the necessity to upgrade fiber-optic networks to accommodate increased AI traffic. CSPs globally anticipate financial services (46%), media and entertainment (43%), and manufacturing (38%) to be the sectors generating the most AI traffic and revenue opportunities.
Revenue generation
In terms of revenue generation avenues, respondents envision multiple possibilities, including opening networks to third-party integrations (40%), offering security and privacy services (37%), introducing new product offerings (37%), creating tailored subscription packages (35%), and differentiating on quality of service for connectivity (34%).
Cloud infrastructure plays a pivotal role in supporting and leveraging AI across networks. While 43% of CSPs favor private cloud deployment for AI services, 37% lean toward public cloud providers’ data centers. Only 21% of respondents plan to adopt a hybrid cloud model.
The study also explores expectations regarding job creation, with 67% of CSPs anticipating AI to stimulate job growth. Key areas of expertise deemed necessary for AI service development include cybersecurity (31%), machine learning (30%), and programming/coding (30%).
AI monetization
The survey unveils varying levels of confidence among CSPs across different countries regarding the monetization of AI and its impact on job creation. Notably, CSPs in India exhibit high confidence (95%), while the US displays comparatively lower confidence (55%). Differences in optimism are also observed concerning AI’s influence on job creation, with Mexico showing the most optimism (90%) and Japan the least (40%).
The study explores the diversity of sectors driving the growth in AI traffic across different countries, with financial services, entertainment, manufacturing, healthcare, and education emerging as prominent sectors in various markets.