How Generative AI can transform the Telecommunications industry in Africa

July 7, 2024

A look at the potential applications and benefits of Generative AI and Machine learning for Mobile Money and Digital Financial Services in the African continent

Wole Odeleye

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AI Terminologies

A look at the potential applications and benefits of Generative AI and Machine learning for Mobile Money and Digital Financial Services in the African continent

Introduction

The Telecommunications industry in Africa is one of the most dynamic and innovative sectors in the continent, with a growing number of mobile subscribers, internet users, and digital services. According to the GSMA, the mobile industry contributed $155 billion to the African economy in 2019, representing 9% of the regional GDP. The industry also supports over 3.8 million jobs and generates $17 billion in tax revenue for governments.

One of the key drivers of the mobile industry's growth and impact in Africa is the development and adoption of Mobile Money and Digital Financial Services (DFS), which enable millions of people to access formal financial services, such as payments, transfers, savings, credit, insurance, and pensions. Mobile Money and DFS have also created new opportunities for financial inclusion, social empowerment, and economic development, especially for the unbanked and underbanked segments of the population. According to the GSMA, there were 469 million registered mobile money accounts in Africa at the end of 2019, representing 54% of the global total. Mobile money transactions in Africa reached $456.3 billion in 2019, accounting for 66% of the global value.

However, the Telecommunications industry in Africa also faces significant challenges and risks, such as increasing competition, regulatory uncertainty, infrastructure gaps, cyberattacks, fraud, and financial crime. To overcome these challenges and leverage the opportunities, the industry needs to embrace digital transformation and innovation, and adopt new technologies and solutions that can enhance its efficiency, agility, resilience, and customer satisfaction. One of the most promising and disruptive technologies that can enable this transformation is Generative AI, which is a branch of artificial intelligence that can create new content, data, and models, based on existing data and rules.

What is Generative AI and how can it benefit the Telecommunications industry in Africa?

Generative AI is a type of artificial intelligence that can generate new and realistic content, data, and models, based on existing data and rules. Generative AI can use different techniques and algorithms, such as deep learning, natural language processing, computer vision, and generative adversarial networks, to create novel and diverse outputs, such as text, images, audio, video, and code. Generative AI can also learn from data and feedback, and improve its performance and quality over time.

Generative AI can benefit the Telecommunications industry in Africa in various ways, such as:

• Delivering differentiated customer experiences: Generative AI can help telecom operators to create personalized and engaging content, offers, and services for their customers, based on their preferences, behavior, and context. For example, generative AI can generate natural and conversational text and voice messages, that can be used for marketing, customer service, and feedback. Generative AI can also create realistic and interactive avatars, that can act as virtual assistants, agents, or influencers, and provide guidance, support, and entertainment to customers.
• Modernizing data services: Generative AI can help telecom operators to enhance their data services, such as data analytics, data quality, data privacy, and data monetization. For example, generative AI can generate synthetic data, that can be used to augment, anonymize, or enrich real data, and improve the accuracy, diversity, and security of data sets. Generative AI can also generate new data insights, that can be used to optimize network performance, customer segmentation, pricing strategies, and product development.
• Combating financial crime and managing fraud: Generative AI can help telecom operators to detect and prevent financial crime and fraud, such as money laundering, terrorist financing, identity theft, and SIM swap. For example, generative AI can generate risk profiles, that can be used to identify and flag suspicious transactions, customers, and agents, and trigger alerts, investigations, and actions. Generative AI can also generate counterfactual scenarios, that can be used to simulate and test the impact of different interventions, policies, and regulations, and improve the effectiveness and efficiency of compliance and governance.
• Combating financial crime and managing fraud: Generative AI can help telecom operators to detect and prevent financial crime and fraud, such as money laundering, terrorist financing, identity theft, and SIM swap. For example, generative AI can generate risk profiles, that can be used to identify and flag suspicious transactions, customers, and agents, and trigger alerts, investigations, and actions. Generative AI can also generate counterfactual scenarios, that can be used to simulate and test the impact of different interventions, policies, and regulations, and improve the effectiveness and efficiency of compliance and governance.
• Optimizing operations and reducing costs: Generative AI can help telecom operators to optimize their operations and reduce their costs, such as network management, service delivery, and customer support. For example, generative AI can generate network configurations, that can be used to automate and improve network planning, deployment, and maintenance. Generative AI can also generate code, that can be used to automate and accelerate software development, testing, and deployment.

How are telecommunications organizations across Europe and Africa leveraging Generative AI?

There are several examples of telecommunications organizations across Europe and Africa that are leveraging Generative AI for various purposes and applications, such as:

• Vodafone: Vodafone is a British multinational telecommunications company that operates in 26 countries, including 14 in Africa. Vodafone is using Generative AI to create personalized and contextualized marketing campaigns, that can increase customer engagement, retention, and loyalty. Vodafone is also using Generative AI to generate synthetic data, that can be used to train and test machine learning models, and improve the quality and privacy of data.
• Orange: Orange is a French multinational telecommunications company that operates in 26 countries, including 18 in Africa. Orange is using Generative AI to create realistic and interactive avatars, that can act as virtual assistants, agents, or influencers, and provide guidance, support, and entertainment to customers. Orange is also using Generative AI to generate natural and conversational text and voice messages, that can be used for customer service, feedback, and education.
• MTN: MTN is a South African multinational telecommunications company that operates in 21 countries, including 15 in Africa. MTN is using Generative AI to create risk profiles, that can be used to identify and flag suspicious transactions, customers, and agents, and trigger alerts, investigations, and actions. MTN is also using Generative AI to generate network configurations, that can be used to automate and improve network planning, deployment, and maintenance.
• Safaricom: Safaricom is a Kenyan telecommunications company that operates in Kenya and Tanzania. Safaricom is using Generative AI to create new data insights, that can be used to optimise network performance, customer segmentation, pricing strategies, and product development. Safaricom is also using Generative AI to generate counterfactual scenarios, that can be used to simulate and test the impact of different interventions, policies, and regulations, and improve the effectiveness and efficiency of compliance and governance.
  

How can Microsoft's Azure Open AI and Copilots help telecom operators in Africa to adopt Generative AI?

Microsoft is a global leader in cloud computing, artificial intelligence, and software development, and offers a range of products and services that can help telecom operators in Africa to adopt and benefit from Generative AI, such as:

• Azure Open AI: Azure Open AI is a cloud-based platform that enables telecom operators to access and use the most advanced and powerful Generative AI models and capabilities, such as GPT-3, DALL-E, and Codex, that can generate text, images, code, and more, based on natural language queries and commands. Azure Open AI also provides tools and resources to help telecom operators to build, deploy, and manage their own Generative AI applications and solutions, and integrate them with their existing systems and processes.
• M365 Copilot: M365 Copilot is a cloud-based service that enables telecom operators to create personalized and contextualized content, offers, and services for their customers, based on their preferences, behavior, and context. M365 Copilot uses Generative AI to generate natural and conversational text and voice messages, that can be used for marketing, customer service, and feedback. M365 Copilot also provides analytics and insights to help telecom operators to measure and improve the effectiveness and impact of their content and communication.
• Copilot Studio: Copilot Studio is a cloud-based service that enables telecom operators to create realistic and interactive avatars, that can act as virtual assistants, agents, or influencers, and provide guidance, support, and entertainment to customers. Copilot Studio uses Generative AI to generate lifelike and expressive facial and body animations, that can be synchronized with text and voice messages, and customized with different attributes, such as gender, age, ethnicity, and style. Copilot Studio also provides tools and features to help telecom operators to design, edit, and publish their avatars, and integrate them with their platforms and channels.
• Dynamics Copilot: Dynamics Copilot is a cloud-based service that enables telecom operators to detect and prevent financial crime and fraud, such as money laundering, terrorist financing, identity theft, and SIM swap. Dynamics Copilot uses Generative AI to generate risk profiles, that can be used to identify and flag suspicious transactions, customers, and agents, and trigger alerts, investigations, and actions. Dynamics Copilot also uses Generative AI to generate counterfactual scenarios, that can be used to simulate and test the impact of different interventions, policies, and regulations, and improve the effectiveness and efficiency of compliance and governance.
• Github Copilot: Github Copilot is a cloud-based service that enables telecom operators to optimise their operations and reduce their costs, such as network management, service delivery, and customer support. Github Copilot uses Generative AI to generate code, that can be used to automate and accelerate software development, testing, and deployment. Github Copilot also provides suggestions and corrections to help telecom operators to improve the quality and performance of their code, and avoid errors and bugs.

How can the major economies in Africa benefit from Generative AI and how can they begin this transformation journey?

The major economies in Africa, such as Nigeria, South Africa, Kenya, Egypt, and North Africa, can benefit from Generative AI in various ways, such as:

• Enhancing financial inclusion and empowerment: Generative AI can help to increase the access and usage of Mobile Money and DFS for millions of people, especially the unbanked and underbanked segments of the population, and provide them with more affordable, convenient, and secure financial services, such as payments, transfers, savings, credit, insurance, and pensions. Generative AI can also help to create new opportunities for income generation, entrepreneurship, and social empowerment, especially for women, youth, and rural communities.
• Boosting economic growth and development: Generative AI can help to improve the productivity, efficiency, and competitiveness of the Telecommunications industry, and other sectors that rely on its services, such as agriculture, health, education, and commerce. Generative AI can also help to create new jobs, industries, and markets, that can stimulate innovation, investment, and trade. Generative AI can also help to increase the tax revenue and social impact of the Telecommunications industry and support the achievement of the Sustainable Development Goals.
• Strengthening resilience and security: Generative AI can help to enhance the resilience and security of the Telecommunications industry, and the society at large, by enabling them to cope with and recover from shocks and disruptions, such as natural disasters, pandemics, conflicts, and cyberattacks. Generative AI can also help to reduce the risks and costs of financial crime and fraud, and improve the compliance and governance of the Telecommunications industry, and the financial system.

To begin this transformation journey, the major economies in Africa need to take some steps, such as:

• Building the digital infrastructure and ecosystem: The major economies in Africa need to invest in and upgrade their digital infrastructure and ecosystem, such as broadband networks, data centers, cloud services, and digital platforms, that can support the adoption and usage of Generative AI and other advanced technologies. They also need to foster collaboration and partnership among the public and private sectors, and the civil society, to create a conducive and inclusive environment for digital innovation and transformation.
• Developing the human capital and skills: The major economies in Africa need to develop and nurture their human capital and skills, such as digital literacy, data science, artificial intelligence, and software engineering, that can enable them to create, use, and benefit from Generative AI and other advanced technologies. They also need to provide education and training opportunities, and incentives, for their workforce, entrepreneurs, and researchers, to acquire and update their knowledge and competencies, and to participate and contribute to the digital economy and society.
• Adopting the ethical and legal frameworks: The major economies in Africa need to adopt and implement the ethical and legal frameworks, such as policies, standards, guidelines, and regulations, that can ensure the responsible and sustainable use of Generative AI and other advanced technologies. They also need to balance the protection of the rights and interests of individuals, organizations, and communities, with the promotion of the innovation and growth of the Telecommunications industry, and the digital sector.