Ciena Study: CSPs Optimistic on AI Boosting Network Efficiency by 40%

A recent global study conducted by Ciena unveils the growing optimism among communications service providers (CSPs) regarding the transformative potential of Artificial Intelligence (AI) on network operations. Over half of surveyed telecom and IT engineers anticipate a remarkable improvement of 40% or higher in network operational efficiency with AI integration. Moreover, an overwhelming 85% of respondents, including 94.4% from the Middle East (encompassing UAE, KSA, and Egypt), express confidence in CSPs’ ability to capitalize on AI-driven traffic monetization.

The research, conducted by Ciena in collaboration with Censuswide, surveyed over 1,500 telecom and IT engineers and managers across 17 countries, including the Middle East. Jürgen Hatheier, Ciena’s International Chief Technology Officer, emphasized the significance of understanding emerging technologies like AI for staying competitive in today’s dynamic digital landscape. Hatheier noted the survey’s revelation of CSPs’ optimistic outlook on AI’s potential to elevate network performance, while also stressing the importance of strategic planning and investment in infrastructure and expertise to fully leverage these benefits.

AI Network Advancements

The study underscores a prevalent belief among participants that AI will significantly enhance network performance, necessitating the implementation of new solutions across fiber network infrastructure and operations. Key strategies perceived to enhance performance include upgrading networks with advanced traffic and network analysis software, upgrading switches and routers, and investing in 800G technology. Nearly all respondents anticipate the need to upgrade fiber-optic networks to accommodate the increasing AI traffic.

AI-Driven Revenue Opportunities

Globally, CSPs foresee sectors such as financial services, media and entertainment, and manufacturing generating substantial AI traffic and revenue opportunities. Notably, in the Middle East, education emerges as a significant sector expected to generate AI traffic, alongside financial services and manufacturing. Respondents also identify various avenues for revenue generation from AI, including opening networks to third-party integrations, offering security and privacy services, introducing new product offerings, tailoring subscription packages, and differentiating on quality of service for connectivity.

Private vs. Public Cloud Adoption

The study highlights the critical role of cloud in supporting and utilizing AI across networks. While a significant portion of CSPs lean towards private cloud deployment for AI services, others prefer public cloud providers’ data centers. Only a minority plan to adopt a hybrid cloud model.

Job Creation Potential

A substantial majority of CSPs anticipate AI to drive job creation and have identified key areas of expertise necessary for developing and launching AI services, including cybersecurity, machine learning, and programming/coding.