KPMG in India Unveils “Redefining TMT with AI” Report at India Mobile Congress 2024

In a significant move that underscores the transformative power of artificial intelligence (AI), KPMG in India has launched a thought leadership report titled “Redefining TMT with AI” at the India Mobile Congress (IMC) 2024. This comprehensive study explores the rapid evolution occurring within the Technology, Media, and Telecommunications (TMT) sectors, driven primarily by the adoption of AI technologies. As the global landscape shifts towards a digitally powered future, the IMC 2024 theme, “The Future is Now,” resonates deeply with the insights presented in this report.

The Role of AI in Transforming TMT Operations

The KPMG report highlights the pivotal role AI plays in reshaping TMT operations, enhancing efficiency, personalizing user experiences, and improving decision-making processes. From automating telecom networks to delivering tailored media content, AI is streamlining operations and unlocking new avenues for growth. The findings are based on a survey of industry leaders, including Chief Digital Officers (CDOs), Chief Technology Officers (CTOs), and Chief Information Officers (CIOs). Notably, 55% of TMT organizations have fully integrated AI into their operations, while 37% are in the scaling phase of their AI initiatives.

The report reveals that AI-driven innovations have already yielded significant results, with 67% of respondents reporting over 10% returns on their AI investments and a 5-10% reduction in operational costs. This data underscores the tangible benefits that AI adoption can bring to organizations within the TMT sector.

Key Insights from the Report

AI Adoption Landscape

The report categorizes organizations based on their AI adoption maturity:

• AI Pioneers (55%): These organizations have successfully implemented AI at full scale for select use cases.
• AI Evangelists (32%): Currently in the process of gradually scaling their AI initiatives.
• AI Explorers (13%): Still in the initial planning stages of adopting AI technologies.

Furthermore, 55% of respondents anticipate that 30-50% of their product or solution portfolios will be AI-led, with expectations that these AI-driven offerings will contribute 10-30% of incremental revenue.

Competitive Edge through Generative AI

The report emphasizes the strategic importance of generative AI in the TMT sector. A striking 65% of Indian CxOs believe that leveraging generative AI will provide a significant competitive advantage. Additionally, 52% of organizations report enhanced customer service through AI, leading to improved technology and network performance metrics.

The financial implications are also noteworthy, with 67% of companies generating returns exceeding 10% on their AI implementations. Moreover, 40% of companies are adopting AI within Finance and HR functions to enhance operational predictability and decision-making processes.

Telecom Sector Insights

Telecom executives are witnessing high levels of AI adoption, with 30% focusing on improving service quality. Other areas of impact include revenue growth (26%), fraud prevention (32%), and delivering better customer experiences (12%). These insights highlight the diverse applications of AI within the telecom sector and its potential to drive substantial improvements.

Barriers to AI Implementation

Despite the promising landscape, the report identifies key challenges hindering AI adoption:

• Skilled Workforce Shortage: 26% of respondents cite a lack of skilled talent and awareness as significant inhibitors.
• High Implementation Costs: 27% report that the overall costs of AI implementation are a top barrier, alongside challenges such as lack of accurate data and IT security concerns.

Workforce Readiness for AI

The report also sheds light on workforce readiness, with 33% of survey participants believing that 30-50% of their workforce will be AI-ready by FY26. This underscores a strong focus on reskilling and upskilling initiatives. According to KPMG’s Global CEO survey, 80% of CEOs agree that investing in skill development is essential for organizations to thrive in an AI-driven landscape.

Recommendations for Accelerating AI Adoption

For the TMT Industry

1. Enhance Infrastructure: Invest in 5G, cloud computing, and edge technologies to support AI solutions, focusing on network automation to improve reliability and reduce costs.
2. Cross-Sector Collaboration: Partner with industries such as healthcare and manufacturing to provide AI solutions for predictive analytics and customer engagement.
3. Strategic Partnerships: Collaborate with specialized AI providers to access advanced technologies and accelerate innovation.
4. Develop Talent: Invest in upskilling through partnerships with universities to create AI curricula focused on network automation and cybersecurity.
5. Responsible AI Practices: Implement frameworks ensuring fairness, transparency, and regular audits of AI models to mitigate bias.

For Policymakers

1. Governance Frameworks: Develop regulations that balance innovation with responsible AI usage, establishing ethical standards and strong data privacy laws.
2. Support R&D: Fund initiatives and establish Centers of Excellence to keep the TMT sector competitive.
3. Public-Private Partnerships: Foster collaborations to accelerate AI deployment in infrastructure and public services.
4. National Training Programs: Work with TMT companies to create educational initiatives that bridge the AI skills gap.

Expert Insights

Akhilesh Tuteja, Partner & National Leader – Technology, Media and Telecommunications (TMT) at KPMG in India, emphasized the transformative potential of AI, stating, “The TMT industry stands at the cusp of a remarkable transformation, driven by the rise of artificial intelligence.” He noted that AI is not only reshaping the TMT sector but also acting as a catalyst for change across various industries.

Purushothaman KG, Partner and Head of Technology Transformation at KPMG in India, remarked on the significant impact of AI on customer experiences and innovation. He stressed that organizations embracing AI technologies will emerge as leaders in a competitive environment.

Hemant Jhajhria, Partner and Head of Consulting at KPMG India, highlighted AI’s role as a strategic enabler, stating, “This report provides a roadmap for organizations to navigate the complexities of AI adoption, ensuring they leverage its full potential for sustainable success.”

Conclusion

The KPMG report “Redefining TMT with AI” serves as a crucial resource for organizations navigating the complexities of AI adoption in the TMT sector. As AI continues to evolve, the insights shared in this report will undoubtedly shape the future of digital communications in India and beyond. The call to action is clear: organizations must embrace AI, invest in robust strategies, and prioritize collaboration and ethical practices to unlock the full potential of this transformative technology.

For those interested in exploring the report further, the PDF is attached for your perusal. Should you need any further clarifications, feel free to reach out.