There is symbiosis between Artificial Intelligence (AI) and the telecom sector: telecom networks provide infrastructure enabling connectivity to AI applications, while AI enhances the efficiency, profitability, and innovation capacity of telecom operators.
A friend and colleague from my days at Bell Labs recently visited us in Toronto. For over 40 years, he has been developing faster photonics for telecom transmission systems. He told me “business is hopping”, driven by AI.
In addition to AI applications driving increased sales, he uses AI to accelerate his own research. Nokia is developing Artificial Intelligence for Operations (AIOps) to automate network management, suggesting that it could reduce downtime by up to 96%. Nokia is researching “agentic AI” for autonomous network optimization, enabling self-healing and self-adjusting telecom systems. Just last week, Nokia broke ground on a new campus in Ottawa, “driving breakthroughs in AI-powered networks, data center networks, quantum-safe infrastructure, and next-generation 6G technologies”.
Reflecting on our shared experiences at the Labs, Danny and I reminisced about memories we have. We have each been in the telecom industry for 45 years. His staff have a real appreciation for his ability to craft prompts for AI systems, and recognize problematic outputs. He called it a benefit of having grey hair. Me? I’m grateful for the little bit of hair I still have, and it is generous to refer to its colour as grey.
In my newsletter a few weeks ago, I referred to a Globe and Mail OpEd written by Bell CEO Mirko Bibic. The following week, I referenced a TELUS press release, where the company announced that its Sovereign AI Factory in Rimouski, Quebec, was named Canada’s fastest and most powerful supercomputer. Carriers are clearly betting heavily on the link between AI and telecom.
And why not?
The telecommunications industry has always been at the forefront of technological innovation. From the invention of the telephone to the rise of mobile networks and the internet, telecom has consistently acted as the backbone of global connectivity. Today, artificial intelligence (AI) is reshaping this sector in profound ways. What makes this transformation unique is the symbiotic relationship between telecom and AI. This mutual reinforcement is ushering in a new era of intelligent connectivity.
AI is no longer a futuristic concept in telecom — for many service providers, it is already embedded in daily operations. According to a recent GSMA Intelligence report, AI plays a dual role: AI for Networks and Networks for AI. AI algorithms are predicting traffic patterns, balancing loads, and reducing congestion to improve connectivity during peak demand. Machine learning models are detecting anomalies in equipment, enabling predictive maintenance, thereby reducing costly outages and downtime. AI models are analyzing call records and data usage to detect fraudulent activities in real time. AI enhances cybersecurity, identifying unusual traffic patterns and mitigating threats.
We are now getting used to AI-powered chatbots and virtual assistants providing support, while ‘sentiment analysis’ helps operators tailor services to customer needs. These AI applications are reducing operational costs, improving reliability, and opening new revenue streams.
Looking at the other side of the relationship, telecom service providers are building the infrastructure upon which AI platforms are enabled. The rollout of 5G and gigabit wireline networks provides the high-speed, low-latency infrastructure required for advanced AI applications, such as autonomous vehicles, smart cities, and immersive entertainment.
Telecom operators are deploying edge data centers, bringing AI processing closer to users, reducing latency, and enabling real-time decision-making. Telecom companies such as Bell and TELUS are building sovereign AI data centres, platforms for AI innovation, offering APIs and infrastructure for startups and enterprises to build AI-powered solutions.
This illustrates the reciprocal nature of the relationship: AI strengthens telecom, while telecom is empowering AI. Symbiosis. The impact of AI’s telecom symbiosis will transcend the technology sector as telecom service providers partner with healthcare, automotive, and finance sectors to deliver AI-powered solutions. Deloitte’s new TMT Predictions report says “TMT [Tech, Media & Telecom] is poised to not merely become larger than any other industry, but larger than all other industries combined — both in terms of value and contribution to economic growth. One reason for that is that other industries use TMT — tech and telecom specifically — to power their own AI innovations, and TMT happens to be the hardware, software, and services provider in the AI gold rush.”
Canada has a Minister of AI and Digital Innovation, Evan Solomon. He has engaged an AI Strategy Task Force to help develop Canada’s AI strategy. In my view, the government needs to resist the temptation to distort private capital markets by throwing cash around in an attempt to pick winners. Instead, the government can use its procurement processes to influence the development of sovereign AI capacity. By mandating “end-to-end Canadian operational control” for the government’s own critical AI workloads, we can create a more stable domestic market for Canadian innovators.
The relationship between telecom and AI is not one of simple adoption — it is a true symbiosis. Telecom networks provide a foundational platform for AI innovation, while AI makes telecom smarter, more efficient, and more customer-centric. Together, AI and telecom symbiosis will enable carriers to continue evolving from providers of connectivity to becoming a platform for intelligence in the digital economy.