Bridge the gap between Telco and Techco with AI-driven customer experience

Telcos stand at a crossroads. Networks are commoditising and products are converging, while new, disruptive technologies and competitors rewrite the rules of engagement. These shifts are compelling telecoms companies to rethink their traditional roles as connectivity providers. Many are already working to reposition themselves as techcos – customer-centric, digitally enabled innovators that operate more like high-performing tech companies. 

Committing to customer centricity represents a pivotal step on the journey from telco to techco. Crucially, it means reimagining traditional customer service models, which are fundamentally misaligned with techco aspirations.  

Today’s customers expect to move fluidly between multiple channels - app, web, and voice - as standard. Service must evolve to meet them there, delivering seamless omni-channel experiences rather than fragmented interactions. Similarly, telcos can no longer rely on reactive interventions to improve the customer experience. They must engage customers in a personalised, proactive way, continuously anticipating and adapting to their changing needs. 

Meeting these demands requires new capabilities, which is where artificial intelligence (AI) enters the picture. AI is being held up as the enabler of far-reaching transformation, the bridge organisations need to enable predictive, personalised, and efficient service at scale.  

Buoyed by this promise, organisations have accelerated efforts to deploy AI. Yet, many are realising a harsh reality. AI is not a magic bullet for improving customer service and, in some cases, may actively undermine it.  

Baringa research underscores the risks of an unconsidered rush to deploy AI - it can erode trust and even drive customers away. Our survey of more than 1,000 customers reveals how people really experience AI in service interactions. The results are sobering, showing that AI-enabled customer service is falling short:  

• AI has an image problem. 40% of customers say that their experience of AI in service interactions leaves them frustrated, while only 14% prefer it to human service 
• Empathy is still missing. 65% of customers aren’t comfortable interacting with AI during emotional, personal, or urgent scenarios. Nearly three-quarters say AI should never handle emotionally sensitive cases such as billing distress or bereavement 
• Agents need up-skilling. As automation scales, telcos must evolve agents into ‘super agents’, multi-skilled, AI-augmented advisors rather than transactional operators, which will require significant investment in skills and development. What’s more, with AI handling routine and standard cases, people are left with the more emotionally taxing and likely more stressful cases — a reality that organisations will have to account for in organisational design and incentive structures. 

AI can transform customer service, but only if done right  

However, there is an upside. While customer trust in AI is fragile, it is possible to fix it. In fact, more than 50% of customers report positive experiences when AI is designed well. These findings underscore that AI must be deployed purposefully, not opportunistically. If telcos simply focus on driving efficiency improvements and cost reductions, it will come at the expense of customer experience. 

Where organisations introduce high-quality, carefully considered AI solutions, the results are clear. Customers enjoy faster response times, agents become more effective, and costs fall. Exceptional experiences, underpinned by the right level of AI enablement, become points of differentiation, helping telcos lift customer loyalty and drive growth.  

At Baringa, we’ve helped clients across the telecoms sector and beyond to shape AI-powered service that yields better value for business and customers alike: 

• We worked with a leading telco to optimise self-service customer journeys. They slashed hundreds of thousands of contacts, saving £4m+ in the process 
• We pioneered a genAI pilot to summarise this telco’s customer conversations, allowing human agents to find critical information faster. This cut average handling times by over five minutes 
• We guided a media and telecoms company through a critical investment in a new contact center as a service (CcaaS) platform. As part of the transformation, we helped our client reimagine how they manage the performance of 5,000+ sales and service employees, spanning on- and off-shore, chat, voice, and email roles.   
• We have worked with a Telco to define their virtualisation of care strategy, creating a realistic roadmap to resolve the maximum number of customer intents via AI and automation. This would achieve an 80% containment rate over 3 years with a £100m+ benefits case.   
• We helped a utility business shape a compelling case for automating contact centre calls using conversational AI. They’re on track to realise savings of £5-10m in year one and achieve a containment rate of over 90% for calls handled through voice AI.  

Four principles to transform AI in customer service 

The examples above prove that when implemented thoughtfully, high-quality AI solutions have an undeniable impact on CX. So how can telcos design AI experiences that delight customers, rather than drive them away? 

Our research and client experience point to four key principles for delivering AI that genuinely enhances customer service:  

• Reimagine customer journeys. AI performs best when integrated into well-designed customer journeys. These must be designed around customer needs, not channels, and reimagined entirely with AI, rather than retrofitted with it. The key is designing cohesive, end-to-end journeys where AI and human touchpoints work together, each used where it delivers greatest value.  
• Design AI-enabled operating models. Telcos must architect future-ready customer operations that integrate AI, SaaS platforms, and automation from the ground up. Using our AI in Service maturity model, we help organisations determine where to ‘enhance, route, or replace’ across service functions, ensuring AI is deployed where it will deliver maximum impact. 
• Shape true omnichannel experiences. Even the most sophisticated AI capabilities will fail to deliver value if implemented within fragmented, channel-centric operations. Service must transition to genuinely integrated omnichannel experiences, where all channels offer consistent value propositions and seamless handoffs. Regardless of how customers interact with their provider or how frequently they switch between channels during a single interaction, the experience should remain cohesive and satisfying. 
• Embed responsible governance. Building customer confidence and meeting regulatory requirements demands explainable, compliant, and ethically governed AI frameworks. Responsibility must be embedded into AI models as a design principle from the outset, particularly when AI is routing, automating, or optimising customer-facing services. This requires clear escalation thresholds that establish precisely when AI hands cases to human agents, ensuring customers receive appropriate support for their circumstances whilst agents have the tools they need to deliver excellent service. 

Delivering on the promise 

When telcos reshape customer service with these principles in mind, the rewards are substantial. Our experience shows that organisations can reduce cost-to-serve by as much as 30-50%, all while increasing first-contact resolution rates, customer satisfaction, and employee engagement. It shows that thoughtfully implemented AI elevates efficiency and experience in equal measure. 

Ultimately, AI offers a powerful means to transform customer experience, but like any tool, its impact depends on how it is wielded. To deliver lasting benefit, AI must be deployed with strategic intent, careful design, and customer centricity at its core. Telcos who take the time today to balance these considerations stand to secure lasting value and competitive advantage in the years to come.  

If you’d like to learn more about how Baringa can help your telecoms business unlock the full potential of AI to transform customer service, please contact any of our panel of experts below.