Ciena study reveals rising optimism among CSPs towards AI

Ciena, a global specialist in networking systems, services, and software, has unveiled a study highlighting the rising optimism among communications service providers (CSPs) towards Artificial Intelligence (AI). According to the survey, which included over 1,500 telecom and IT engineers and managers across 17 countries, AI is expected to significantly enhance network operational efficiency and job creation within the industry.

Key findings from the study indicate a robust belief among CSPs in Singapore that AI will lead to a net increase in jobs within the sector. Notably, 80% of Singaporean CSPs held this view, compared to a global average of 67%. The survey also flagged that switches and routers are the most likely network components to be upgraded to accommodate AI traffic, with 51% of operators backing this enhancement. Furthermore, an overwhelming 95% of CSPs are confident in their ability to monetise AI traffic on their networks.

Jrgen Hatheier, Ciena's International Chief Technology Officer, emphasized the importance of understanding emerging technologies like AI to remain competitive in the rapidly evolving digital environment. He highlighted the positive long-term outlook of CSPs regarding AI's potential to augment network capabilities, necessitating strategic planning and investment in infrastructure and expertise to fully realise the benefits.

The study grossly underscores the anticipated improvements in network performance through AI. Telecom and IT engineers surveyed believe that deploying new network traffic and analysis software, upgrading switches and routers, and investing in 800G technology are key strategies to enhance performance. Nearly all respondents (99%) indicated the need to upgrade fibre-optic networks to handle the increasing AI traffic.

Revenue generation from AI also emerged as a significant theme. CSPs globally expect financial services, media and entertainment, and manufacturing sectors to drive the bulk of AI traffic, thereby presenting considerable revenue opportunities. They foresee multiple revenue streams including third-party network integrations (40%), security and privacy services (37%), new product offerings (37%), tailored subscription packages (35%), and enhanced service quality differentiation (34%).

The role of cloud infrastructure in supporting AI was another focal point. The survey revealed a preference for private cloud deployment of AI services among 43% of CSPs, while 37% showed a predilection for public cloud data centres. A minority of 21% expressed plans to opt for a hybrid cloud model.

In terms of job creation, 67% of CSPs worldwide predict AI will be instrumental in creating jobs, with specific skill sets such as cybersecurity (31%), machine learning (30%), and programming/coding (30%) being crucial for the development and deployment of AI services.

The study also highlighted notable regional differences in attitudes towards AI. Indian CSPs were among the most confident (95%) regarding the monetisation of AI, while their counterparts in the U.S. were less assured (55%). Additionally, there were significant disparities in perspectives on job creation, with Mexico and Japan at the extremes in their expectations (90% and 40%, respectively) over AI's impact on employment within the sector. Different countries also identified various sectors, including financial services, entertainment, manufacturing, healthcare, and education, as primary drivers of AI traffic growth.