The telecommunications industry is rapidly evolving beyond its traditional role of providing connectivity. Companies are now embracing digital transformation, expanding into artificial intelligence, FinTech and content services. The broader shift to AI in telecommunications is driven by the need to create new revenue streams and compete with over-the-top service providers.

Harrison Lung of e& is on set with theCUBE to discuss AI in telecommunications.

The ability to leverage AI for enhanced customer experiences and operational efficiencies is becoming a key differentiator in the industry. At the forefront of this transformation is a strategy that integrates telecom operations with advanced technology solutions. Organizations are redefining their business models by creating independent verticals that cater to different market demands. These efforts aim to maximize profitability while addressing the complexities of AI governance, regulatory compliance and digital service monetization, according to Harrison Lung (pictured), group chief strategy officer of e&, a UAE state-owned telecommunications company.

“I would call 2025 the year of the AI from a monetization and impact perspective,” Lung said, who spoke with theCUBE’s Dave Vellante and Savannah Peterson at MWC25, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. “Just in the last year, we grew 10% in revenue, year on year. Since we’ve started this [AI] journey, both from a revenue and net profit perspective, we’re at 15 to 20% growth.”

During the interview, Lung discussed AI in telecommunications and how AI is transforming the telecom and FinTech industries, focusing on governance, monetization and the balance between digital innovation and network reliability, as well as insights on its partnership with IBM Corp. (* Disclosure below.)

AI in telecommunications: Transforming connectivity and services

AI is playing a critical role in reshaping the telecom industry, from optimizing networks to enhancing customer interactions. Companies are now utilizing AI to personalize content recommendations, improve cybersecurity and drive operational efficiencies. The demand for AI solutions is growing, and telecom providers are strategically positioning themselves to capitalize on this trend.

“For us, this is actually very interesting because in addition to our organization going through this journey, the amount of money that companies spend on AI inside the telecom industry is actually a very, very small percentage versus the larger percentage of the money other companies in financial services, in healthcare, in government spend on AI,” Lung said.

Despite the opportunities AI presents, challenges remain in regulation and governance. Many telecom companies operate in multiple countries, each with its own compliance standards and regulatory frameworks. Organizations must balance AI innovation with strict adherence to data governance policies, ensuring responsible implementation, Lung pointed out.

“On your second point, I think for us, the rule of regulatory bodies is super important,” he said. “At the end of the day, we’re a telecom player, so we have the licenses, the spectrum in our 20 countries to operate in that space. But also in the same time, in the technology aspect, we’re also operating in a very agile manner to test and learn.”

As AI continues to shape the future of telecommunications, industry leaders are focusing on leveraging partnerships, investing in AI governance, and ensuring seamless integration of digital services. The ability to adapt to these changes will determine which companies emerge as dominant players in the next era of telecom and technology convergence, Lung added.

e& and IBM: A strategic partnership driving AI and governance innovation

The collaboration between e& and IBM represents a significant step forward in AI governance, research and enterprise solutions. As e& continues its transformation from a telecom company into a global technology powerhouse, strategic partnerships play a crucial role in scaling its ambitions. IBM, with its extensive global presence and deep expertise in AI and enterprise technology, has become a vital partner in this journey, according to Lung.

“We announced two interesting initiatives. One is after, close to one year of hard work, we actually did a joint research white paper,” he said. “We looked at the adoption of AI in the regions, in the MENA region, looking at Saudi, Egypt and the UAE, comparing to the US, so that we can do a compare and contrast of where we’re ahead, where we may be behind, and the like.”

Beyond research, the companies are working together to develop an AI governance framework, a crucial initiative as AI adoption accelerates worldwide. With increasing regulatory scrutiny and the need for responsible AI implementation, this governance platform is designed to ensure compliance, transparency and ethical AI usage across industries.

“We also announced with IBM to work with them on an overall end-to-end AI governance platform and framework,” Lung added. “This is a very pioneering approach that is, I would also almost say, market-leading. The reason is that beyond the data governance and the AI sovereignty, we also want to have a common pain to have the right compliance, transparency and governance to manage all these different AI initiatives and processes.”

IBM’s role in the partnership extends beyond governance. Given its global reach and extensive technology portfolio, IBM brings valuable insights, expertise and infrastructure that e& can leverage for its own operations and customer solutions, Lung explained.

“At the end of the day, while we aspire to be a global technology company, because we’re in 38 countries, IBM is in over 100 companies,” he said. “So, they’re much more global than we are. And as such, this partnership really brings their insights and expertise to bear to us in a number of different markets that we’re currently not in.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of MWC25:

(* Disclosure: IBM Corp. sponsored this segment of theCUBE. Neither IBM nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE