In a recent study by SAS, telcos are emerging as the frontrunners in generative AI adoption, outpacing industries like retail, banking, and insurance. The research, which surveyed 1,600 global decision-makers across multiple sectors, revealed that 70% of telco executives have already integrated generative AI into their operations—either fully implemented or in pilot stages. This puts them miles ahead of their peers.

“It’s not surprising to see the telco industry take the lead in the use and implementation of generative AI,” says Mari Nilsson Björkman, Telecom Industry Lead at SAS Northern Europe. “Our research reveals that senior decision-makers not only recognise the significant advantages from using the technology but also appreciate its transformative potential. Nearly one in three plan to adopt it across the entire enterprise.”

While 70% of telcos are working with generative AI, around 29% have already rolled it out across their entire organization. Compare that to the retail sector, where 66% have some form of adoption, followed by 60% in banking and insurance. It’s clear the telco industry is ahead of the curve.

Interestingly, telcos are also embracing open-source models like Meta’s Llama 3.2, with 38% already incorporating these tools, significantly outpacing other industries, where the average is around 29%.

For organizations that have embraced generative AI, the benefits are clear: 89% of executives report improved employee experience, 82% note cost savings, and 82% see better customer retention. However, it is not uhuru. Challenges persist, with 39% struggling to integrate AI into existing systems and 34% citing high costs.

For telcos, investments in AI is not slowing down. Nearly 89% of respondents from this sector plan to increase investment in generative AI by 2025—a figure that matches only the insurance industry. The momentum is building, but with that comes challenges.

Data privacy and security are top of mind, with 83% and 80% of telco respondents citing these as key concerns. There’s also worry about the ethical implications (60%) and finding the right in-house talent (54%). Björkman points out, “As the industry continues to innovate, it will be essential for telcos to navigate these challenges effectively to maximize the benefits of generative AI. By prioritizing data privacy and security, they can fully harness the power of generative AI to enhance operations and better serve their customers.”

This study highlights that telcos aren’t just adopting AI—they’re leading the charge. For senior decision-makers, this is a clear signal: the future of AI is here, and telcos are setting the pace for how it’s implemented across industries.