, APAC
674 views

Sole focus on automation limits AI's revenue potential, experts say

Ninety-five per cent of AI proof of concepts fail due to unclear objectives.

Telecom operators should treat artificial intelligence (AI) as part of their core business strategy rather than simply a cost-cutting tool, industry experts said during the 2026 Asian Telecom Summit in Singapore.

AI is ultimately about generating revenue, adding value, and transforming the way companies work, said Alvaro Davis Mendez, Telco and Media Market Head for ASEAN at Indra Group.

However, the majority of telcos have so far focused more on automation and cost efficiency, according to Jose Pablo Del Reguero de la Torre, Head of Strategy and Innovation at Indra Group Telecom & Media Consulting.

“In some cases, they may have relied too heavily on automation to replace personnel,” he said. “This approach can be challenging, as achieving a return on investment from substituting staff with automation is not always straightforward.”

“Once we understand how to use it properly and stop treating it as just another technology to implement in business support systems or operations support systems, we can start seeing real benefits,” Mendez added.

Del Reguero de la Torre cited what he described as a study from MIT, which he said found that 95% of the time, AI is already failing on proof of concepts (POC).

“The biggest challenge is the lack of definition. What do I want to achieve starting from the first day?” he added.

Companies tend to look at use cases that have worked elsewhere instead of building their own, Mendez added. “The second issue is that they often don’t clearly understand the purpose of a POC—why they are doing it in the first place—so it’s hard to fix or improve.”

“What is the end goal?” he said. “Do we want to generate revenue or improve efficiency?”

Meanwhile, both speakers outlined what they described as two strategies for telecom operators: defence and growth.

On the defensive side, Mendez noted that companies should use AI to reduce customer churn and improve network stability. Meanwhile, on the growth side, operators can use AI to create new revenue streams and explore new business models.

Del Reguero de la Torre said telecom companies are investing in data centres and artificial intelligence centres because “they know it’s a way to maximise the revenues they’re going to have in the next few years.”

Efficiency is the starting point, he emphasised. “Automation and process optimisation are where telcos begin with AI. But the real value lies in revenue growth.”

Follow the link for more news on

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Exclusives

Singapore, Hong Kong take rival paths to capture global gold trade
One builds MAS-backed vaulting for central banks, the other opens a pipeline to Shanghai.
Monday.com picks Singapore for Southeast Asia expansion
Its in-house designers created Singapore-inspired artwork in the company's colors.
Tsuklio targets dual-income families in Singapore expansion
The Japanese meal subscription platform logged 3,000 pre-registrations before launch.