- The telecom workforce is shrinking amid an AI-driven efficiency push
- Whether AI can actually make customer service better is highly questionable
- Operators could prioritize making their networks more efficient instead, but that won't stop job displacement
The telecom workforce is undeniably shrinking. You can’t go far without hearing news of layoffs or “restructuring,” as operators like to oh-so-tactfully put it. Fierce recently looked into how operator employee headcounts changed over the last five years. Spoilers: Most of them went down.
Naturally, we wondered if there was any rhyme or reason behind the decline. The blunt reality is that it all comes down to efficiency. As companies try to make operations more efficient, this leads to more automation, which in turn means fewer people.
But you certainly won’t hear that from operators. AT&T, Orange and Verizon have stressed AI is not about replacing humans and that humans are at the heart of their AI efforts.
The inevitable rise of AI
Maybe that’s true, for now. AI, like any other historical technological advancement, is progressing rapidly. When the first cell phones came out, I’m sure plenty of people thought they wouldn’t replace landlines. Or that automobiles won’t replace the horse and buggy.
The point is, society was first skeptical about these new inventions because it was unclear how reliable they actually were. Fast forward 10-20 years, that technology became ubiquitous. Why should AI be any different?
Either telcos are blissfully ignorant of how technological advancements work, or they just don’t want to admit the risks AI poses to their workforce.
Honestly, I can’t tell. I recently got a pitch from an operator about some news on how they’re using AI to improve customer service operations. Pretty standard stuff, but one part of the email was a tad concerning: They want to “provide AI driven solutions that enhance customer interactions and reduce its employee’s cognitive load.”
Creepy, right? It's almost like they're already thinking of employees like machines. Heck, we even have billboard ads that blatantly read, “Stop hiring humans.” If that’s not a warning sign, I don’t know what is.
But even as they progress - intentionally or not - toward replacing real humans with AI ones, it's worth noting that telcos by and large still don't quite know what exactly they plan to do with those new AI workers.
They're trying to figure out what works about AI, what doesn't and whether it's truly worth the money. The AI skills gap is another major hurdle, as operators often lack in-house expertise in data science and the different areas of AI.
Customer experience or customer frustration? The chatbot dilemma
Operators are gung ho on using AI to "improve the customer experience," but I don't know a single person who enjoys calling in with a problem only to be confronted by a chatbot.
Maybe it's good enough to tell you that you need to restart your router, but relying on AI to resolve anything more complex - especially a billing issue - is far from foolproof. And don't forget the fun in repeating yourself five times because the bot "didn't quite get that."
Yet telcos seem to think that's the future of customer service. The counterpoint is that AI is still in its growing pains and while chatbots are pretty primitive, they won't be that way forever. We could soon see chatbots morph into "digital humans," AI-powered avatars designed to look, act and talk like real customer service workers.
How "real" the interactions will be are debatable, and if you put any stock in the "uncanny valley" theory, chances are these digitized people could elicit a negative reaction from their human counterparts.
If operators believe more AI equates to more efficiency, what's stopping them from going beyond call centers and replacing employees at brick-and-mortar retail stores? Think of all the self-service kiosks that supplanted cashiers at fast-food places like McDonalds (who by the way, briefly experimented with AI for customer orders, only to mess up big time).
The cost of network efficiency
Instead of wasting time and energy on replacing people, maybe operators should focus on fixing infrastructure that can't keep up with AI's demands.
Despite attempts to reinvent themselves as “techcos” or AI companies, most operators still have clunky, decades-old wiring in place. Not to mention they are drowning in data as well as technical debt. Telcos have a lot to do if they want to clean house and more effectively run their networks.
Now I know what you're thinking, doesn't that mean they need to shift towards more network automation and self-healing, which would STILL result in workforce reductions?
Sadly, the answer to that is probably yes. Except it won't be call center employees on the chopping block but network engineers. AI really does feel like the new outsourcing.
However, I'm still hopeful we won't see a mass exodus of engineers. Operators realize the risks of relying on AI to run the network - you can't guarantee something won't go wrong.
As FiberLight CEO Bill Major put it, AI is like any software update and if it's a faulty system, it could potentially shut down an entire network. If that happens, you want actual folks on the ground to resolve any problems ASAP.
For now, most operators will likely shy away from making their network operations fully autonomous. Companies still want to have human beings who can answer for problems that arise.
Nevertheless, it's hard to deny that AI will create enough efficiency that way fewer people will be needed for companies to function. Even if network engineers won't be hit as hard as call center staff, layoffs will likely continue.
Can operators figure out how to make the most of AI to improve their networks, without sacrificing the workforce? There's no easy answer, but laying off workers with no plan just doesn't feel right.
Op-eds from industry experts, analysts or our editorial staff are opinion pieces that do not represent the opinions of Fierce Network.