A recent surge in job cuts in the telecom sector has been attributed to a misconception about artificial intelligence (AI). Despite claims that AI is the reason for these layoffs, research suggests that most of the reductions are due to factors unrelated to AI. According to Mustafa Suleyman, head of AI at Microsoft, AI psychosis – where people believe AI is sentient – may be a natural consequence of heavy AI use.
However, the impact of AI on telcos has been overstated. Most job cuts have occurred in sectors that have experienced downturns or undergone significant changes, such as the decline of 5G. Companies like Nokia and Intel have seen workforce reductions due to market shift and financial struggles, rather than the adoption of AI.
In fact, a study by MIT found that 95% of organizations investing in generative artificial intelligence (GenAI) are not seeing any return on their investment. This highlights the growing concern that the hype surrounding AI is unwarranted, and its benefits have yet to materialize. As telecom companies continue to invest in AI, it’s essential to separate fact from fiction and recognize that this technology is just one tool among many used to improve network efficiency.
Source: https://www.lightreading.com/ai-machine-learning/ai-looks-increasingly-useless-in-telecom-and-anywhere-else