Ofcom – 1 in 12 UK adults use AI to help manage their telecoms services

The UK telecoms regulator, Ofcom, has today published the results of their initial assessment of AI’s impact on telecoms customers so far and how AI in the telecoms customer journey may evolve in future. Among other things this reveals that 53% of online UK adults use AI, with 8% using it to help manage their telecoms (broadband, mobile and phone) services.

The regulator’s existing telecoms rules allow for AI innovation while “protecting consumers“, but Ofcom said that such developments are “being monitored closely” and that’s where their latest report comes into play. This is also being supported by the results from the regulator’s latest Technology Tracker research.

Suffice to say that a lot of broadband and mobile providers are already harnessing AI to help with processing information, while an increasing number are adopting it for direct customer engagements via internet chatbots and even voice calls.

However, Ofcom’s report confirms that consumer sentiment toward the use of AI chatbots and voice agents tends to be quite mixed, with some welcoming it and others viewing it as being more of a negative (i.e. a way of reducing the number of actual humans that are available to provide support) – often regardless of whether or not they help to resolve problems more quickly.

Summary of Key Findings

➤ Just under half of adult UK internet users (48%) said they had used GenAI tools in the past 12 months (such as ChatGPT, Meta AI, Google Gemini and Microsoft Copilot).

➤ Around one-in-four (23%) said they had interacted with AI chatbots in the same period. They were most likely to have used AI chatbots from retail businesses (11%), financial services and utilities (both 8%) and telecoms (6%).

➤ 8% of adult UK internet users said they had interacted with an AI service in relation to telecoms services in the past twelve months.

➤ 6% had used an AI service to resolve a telecoms issue.

➤ 3% had used an AI service to make a telecoms price, product or service comparison.

➤ 2% had used an AI service to make a telecoms-related complaint.

➤ Our research also found that just under half (46%) of adult UK internet users said they had not interacted with AI at all in the past 12 months. This figure is likely to fall if AI adoption continues apace.

Ofcom said 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 in the future “select the best broadband deal for users and prepare the transaction for their approval“.

Later on, it might even be possible for AI intermediaries – such as AI assistants – to monitor users’ telecoms accounts and sign them up to better deals when possible. One risk here is that AI is notorious for hallucinations and can sometimes give the wrong advice, thus we think it’s far too soon to be entrusting such decisions to these systems.

However, Ofcom’s 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 still 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.

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.”

The regulator made clear that, so far, there is only “limited evidence” to suggest that AI applications have been a “systemic cause of harm to telecoms customers” and they currently believe their existing rules are doing enough to protect consumers.

Nevertheless, Ofcom have today clarified what they expect from telecoms companies when adopting AI solutions, while warning that they will review any evidence of harm promptly and “act quickly should we have concerns about this“. The catch being that Ofcom aren’t exactly known for acting quickly and it usually requires a fair volume of complaints to surface first.

Ofcom’s AI expectations for telecoms providers

➤ 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.