At the India Mobile Congress in 2024, KPMG in India released a thought leadership paper titled “Redefining TMT with AI.” This thorough analysis explores the swift changes being brought about by the use of artificial intelligence in the Technology, Media, and Telecommunications (TMT) industries.
IMC 2024 is the perfect example of the theme “The Future is Now,” as the world begins to transition to a digitally powered future. The paper demonstrates how artificial intelligence (AI) is significantly changing TMT operations through increased productivity, customized experiences, and improved decision-making. AI is simplifying procedures and creating new avenues for expansion, from delivering tailored media content to automating telecom networks. According to the report, which is based on a survey of CDOs, CTOs, and CIOs among other industry experts, 55% of TMT businesses have fully integrated AI, with 37% still in the scaling phase. Significant outcomes have already been achieved by AI-driven innovations, with 67% of respondents reporting above 10% returns on AI investments and a 5–10% decrease in operating expenses.
This thought leadership study delves deeply into the main obstacles, including the lack of qualified personnel and the high cost of using AI, as well as the great impetus that exists to overcome them. The findings presented in this research will influence the direction of digital communications in India and abroad as AI develops.
Key Takeaways from the TL:
- AI Adoption Landscape:
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- 55% of organizations are classified as AI Pioneers, having successfully implemented AI at full scale for select use cases.
- 32% are considered AI Evangelists, currently in the process of gradually scaling their AI initiatives.
- 13% are AI Explorers, still in the initial planning stages of adopting AI technologies.
- 55% of respondents anticipate that 30-50% of their product or solution portfolios will be AI-led, with expectations that these AI-driven offerings will contribute 10-30% of incremental revenue.
- Competitive Edge through Generative AI:
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- 65% of Indian CxO’s strongly agree that leveraging generative AI will provide a significant competitive advantage, highlighting its strategic importance in the TMT sector.
- 52% of organizations report enhanced customer service by utilizing AI to improve technology and network performance metrics, leading to better observability and service enhancements.
- 67% of companies have begun generating returns in excess of 10% on their AI implementations, building a compelling case for widespread adoption across the sector.
- 40% of companies are adopting AI within Finance and HR functions to achieve better predictability in operations and decision-making processes
- Telecom Sector Insights:
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- Telecom executives are seeing high levels of AI adoption, with 30% focusing on improving service quality.
- Additional areas of impact include revenue growth (26%), fraud prevention (32%), and delivering better customer experiences (12%).
- Barriers to AI Implementation:
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- 26% of respondents cite a lack of skilled workforce and awareness as significant inhibitors to AI adoption.
- 27% report high overall costs of implementation as the top barrier, alongside challenges such as:
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- Lack of accurate data
- IT security and privacy concerns
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- Workforce Readiness for AI:
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- 33% of survey participants believe that 30-50% of their workforce will be AI-ready by FY26, underscoring a strong focus on reskilling and upskilling initiatives.
- According to KPMG’s Global CEO survey, 80% of CEOs agree that investing in skill development is essential for organizations.
Accelerating AI Adoption in the TMT Sector: Suggestions from the report
For the TMT Industry:
- Enhance Infrastructure: Invest in 5G, cloud computing, and edge technologies to support AI solutions, focusing on network automation to improve reliability and reduce costs.
- Cross-Sector Collaboration: Partner with industries like healthcare and manufacturing to provide AI solutions for predictive analytics and customer engagement.
- Strategic Partnerships: Collaborate with specialized AI providers to access advanced technologies and accelerate innovation.
- Develop Talent: Invest in upskilling through partnerships with universities to create AI curricula focused on network automation and cybersecurity.
- Responsible AI Practices: Implement frameworks ensuring fairness, transparency, and regular audits of AI models to mitigate bias.
For Policymakers:
- Governance Frameworks: Develop regulations that balance innovation with responsible AI usage. Establish ethical standards, ensure transparency in AI systems, and implement strong data privacy laws.
- Support R&D: Fund initiatives and establish Centers of Excellence to keep the TMT sector competitive.
- Public-Private Partnerships: Foster collaborations to accelerate AI deployment in infrastructure and public services.
- National Training Programs: Work with TMT companies to create educational initiatives that bridge the AI skills gap.
Akhilesh Tuteja, Partner & National Leader – Technology, Media and Telecommunications (TMT), KPMG in India: “The TMT industry stands at the cusp of a remarkable transformation, driven by the rise of artificial intelligence. As the global landscape rapidly embraces a digital-first future, AI is emerging as a transformative force, reshaping not just the TMT industry but all other industries. This pivotal moment offers the sector an opportunity to redefine its role as a catalyst for change, fostering advancements across industries and ensuring that the far-reaching benefits of AI are realized by all.”
Commenting on the report, Purushothaman KG, Partner, Head Technology Transformation and Sector Head – Telecommunications, KPMG in India said, “The insights from this report highlight the significant impact AI is set to have across the TMT landscape. Our findings suggest that organisations adopting AI technologies are not merely enhancing their operations; they are also fundamentally reshaping customer experiences and driving innovation in ways we haven’t seen before. For companies in the TMT sector, the message is clear: those who embrace AI and invest in robust strategies to integrate these technologies will emerge as leaders in a highly competitive environment. As we move forward, collaboration, skill development, and ethical AI practices will be critical in unlocking the full potential of this transformative technology.”
Hemant Jhajhria, Partner and Head of Consulting, KPMG India said, “Artificial Intelligence is revolutionizing the TMT sector in customer service, network optimization, marketing personalisation and fraud detection. At KPMG in India, we see AI not only as a technological advancement but as a strategic enabler that positions companies at the forefront of innovation and growth. This report provides a roadmap for organizations to navigate the complexities of AI adoption, ensuring they leverage its full potential for sustainable success.”
