Gartner Insights Abstract

Forecast Analysis: AI Services for Communications Industry, Worldwide

Published: 27 June 2024

Summary

Communications service providers focus on AI-first strategies for agility, cost and CX outcomes, driving growth of related services. Classic AI and generative AI services spending in the communications industry will grow at 18.2% CAGR to create $42 billion annual revenue by 2027.

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Overview

Forecast Assumptions
  • By 2025, half of the largest IT service providers serving CSPs will lead a curated generative AI ecosystem with a focus on security and trust, up from 5% in 2024.

  • By 2027, 75% of CSP CEOs will be buying consulting engagements based on AI-first strategies, up from zero in 2023.

  • Measurable generative AI business outcomes beyond efficiency emerge in late 2024 and will drive more demand for custom-made generative AI service offerings.

Market Impacts
  • CSPs are prioritizing spend on generative AI services that create business value around trust by addressing related security and risk.

  • The AI portion of all services

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Analysts:

Jouni Forsman

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