Ciena Global Study Finds 60% of CSPs Believe AI Will Improve Network Operational Efficiency By 40% or More

A global study commissioned by Ciena (NYSE: CIEN) sheds light on communications service providers’ (CSPs) growing optimism toward Artificial Intelligence (AI). More than half of telecom and IT engineers surveyed believe the use of AI will improve network operational efficiency by 40% or more¹. In addition, an overwhelming 85%² of respondents express confidence in CSPs’ ability to monetize AI traffic across networks.

The research was conducted by Ciena in collaboration with Censuswide, surveying more than 1,500 telecom and IT engineers and managers at CSPs in 17 countries across the globe.

Jürgen Hatheier, Ciena’s International Chief Technology Officer, said: “Understanding emerging technologies like AI is an essential step toward staying competitive in today’s constantly changing digital landscape. The survey highlights the optimistic long-term outlook of CSPs regarding AI’s ability to enhance the network as well as the need for strategic planning and investments in infrastructure and expertise to fully realize the benefits.”

AI network benefits

A key theme from the study is the opinion that AI will enhance network performance. To achieve this, participants believe new solutions across fiber network infrastructure and operations will be required. According to the study, the most popular strategies believed to improve performance include upgrading networks with new traffic and network analysis software (selected by 49% of respondents), along with upgrades in switches and routers (43%), and investment in 800G technology (40%), underscoring the multi-faceted approach operators are adopting to bolster network capabilities. In fact, almost all (99%)³ respondents⁴ believe they will need to upgrade fiber-optic networks to support more AI traffic.

AI-driven revenue opportunities

Globally, CSPs believe the sectors that will generate the most AI traffic, and therefore revenue opportunities, are financial services (46%), followed by media and entertainment (43%), and manufacturing (38%).

Respondents also see multiple avenues to generate revenue from AI. Specifically, 40% believe it will be from opening their networks to third-party integrations; 37% believe revenue will come from security and privacy services; the same number (37%) believe it will come from new product offerings; 35% believe it will be from the creation of tailored subscription packages; and 34% believe revenue will be from differentiation on quality of service for connectivity.