Consumers using AI to help manage their telecoms services, but human contact still valued

• Ofcom research shows just over half of online UK adults use AI, with one in 12 using it to help manage their telecoms services
• Speaking to a person still valued by many, particularly for complex or sensitive issues, but some prefer using AI to human interaction
• Ofcom’s existing telecoms rules allow for AI innovation while protecting consumers, but developments being monitored closely

People and small businesses are using AI to navigate phone, broadband and pay TV markets, but have mixed views about it, according to a new report published today by Ofcom.

The findings are from a review by the telecoms watchdog examining how artificial intelligence is shaping the future of customer experiences for people and businesses.

Use of AI in retail telecoms

AI systems have been used for decades to automate and improve how telecoms companies manage their networks. However, in the last five years, retail providers have taken advantage of rapid advances in generative AI to support more of their interactions with consumers.

Our latest Technology Tracker research found that over half (53%) of adult UK internet users had interacted with a GenAI tool and/or an AI customer service chatbot in the past 12 months.

Eight per cent of online adults use an AI tool in relation to their telecoms services, with 6% using one to resolve a telecoms issue, 3% using AI to make a price, product or service comparison, and 2% using it to make a complaint.

Mixed views about speaking to human customer service agents

While many people recognise the benefits of using AI in their everyday lives, with some even preferring it to human interaction, others are concerned about the possibility of not being able to speak to a person.

Some of the participants in our research said:

• “I don’t really want to speak to a human. I just want them to say, someone is dealing with it. It’s an excellent use of AI.”
• “Something like this is my idea of heaven. I don’t like talking to people.”

However, others declared:

• “AI is only a robot. It’s not got empathy or compassion. I’d prefer to speak to a human.”
• “AI is not a foolproof solution because there’s always something that requires a human touch.”
• “I don’t trust it. If you speak to a normal person, you ask a question and they know what you are on about. With all these AI things you can go through all these questions and you end up back where you started.”

Telecoms companies are generally taking a cautious approach by applying guardrails to AI applications and restricting the functions they perform.

Despite mixed attitudes towards AI, we think the proportion of customers who use it to navigate telecoms markets could grow quickly.

AI intermediaries and personal agents

Widespread deployment of agentic AI is also likely to enable new and different AI applications in the telecoms customer journey. AI agents – which have the potential to plan, coordinate and execute tasks with a high degree of autonomy – could select the best broadband deal for users and prepare the transaction for their approval. In the future, it might be possible for AI intermediaries – such as AI assistants – to monitor users’ telecoms accounts and sign them up to better deals when possible.

However, our research found that while some people recognise the time and effort that could be saved when using personal AI agents, most share concerns about risks to their personal data and privacy and feel that negotiating with a human enables them to get the best deal.

There are also a number of challenges that would need to be addressed for these applications to be implemented successfully. These include robust verification and authorisation protocols, as well as broader regulatory, physical and commercial concerns.

Monitoring developments on behalf of consumers

To date, there is limited evidence to suggest that AI applications have been a systemic cause of harm to telecoms customers. We currently think our existing rules protect consumers effectively.

However, today we have clarified our expectations of telecoms companies and others involved in developing AI applications for the telecoms sector. In particular:

• It should be very clear to telecoms customers when they are interacting with a GenAI application. For example, it should be transparent to customers using GenAI-augmented chatbots that the application is powered by AI from how it describes itself.

• We would be concerned if communications providers’ AI applications were to act as ‘gatekeepers’ that create barriers to accessing support over the channels that providers are required to make available to customers.

We will continue to engage proactively with industry, consumer groups and others about AI innovation and changing consumer attitudes and behaviour. We will review evidence of harm promptly and act quickly should we have concerns about this.

Cristina Luna-Esteban, Policy Director at Ofcom, said: "AI has the potential to make the consumer journey in the telecoms market easier, quicker and more personalised. It could help people compare services, negotiate contracts and get more for their money.

"We’re working with telecoms firms to ensure a future where AI works in consumer’s best interests and firms ensure human support remains available when they need it."