A global research firm has predicted the artificial intelligence (AI) boom for telcos will start leveling out in 2026.
STL Partners predicts one AI-related growth area among telcos but warns of a slower adoption or pullbacks in three others.
First, the AI optimism: Telcos will increasingly adopt voice-based AI, analysts believe. Already, some of the biggest global telcos are using embedded voice assistance in AI channels for enterprise customers. In 2026, telcos are likely to adopt voice technologies for customer calls as well.
Immediate benefits could include live translation and integration of digital assistance services.
The rest of the picture is a little less rosy.
Telcos that haven’t already launched AI apps for business are unlikely to do so in 2026. Instead, these smaller companies will rely on white-label services and “wait for the opportunity to crystallize.”
STL researchers also predicted a significant global telco would be “humbled by a major cybersecurity attack in 2026.” That, in turn, would likely make smaller telcos wary of sharing their proprietary data with third-party models.
Instead, smaller firms may host their own data and develop custom AI models on top of foundation models.
That dovetails with predictions from Protiviti published in October 2025. Among organizations it surveyed, 68% plan to integrate autonomous or semi-autonomous AI agents into core operations in 2026, the firm reported. However, early AI agents are operating under tight restrictions and overseen by humans.
Finally, the STL report predicts Nvidia will stop investing in telco by the end of 2026.
“The industry will remain unconvinced by the necessity to deploy GPUs as part of the 6G RAN refresh, particularly in relation to the ambition of hosting enterprise workloads on the spare capacity of the RAN,” the report reads.
Less than a year ago, Nvidia released a report of its own saying 97% of telecom providers were already using AI, and nearly half had already deployed it. But, mirroring the predictions from the STL report, Nvidia found that telcos were focused on using AI for customer experience optimization.
STL Partners is a telecoms consultancy and research firm based in London. Its report, “Perspectives 2026: 26 Industry Predictions For The Year Ahead,” was published late last year.
