Insights

Ignition Toll Free, Pindrop and Somos Talk Power of AI in Telecom

Oct 25, 2024

The 2024 Somos Summit in Las Vegas brought together industry leaders, innovators and visionaries to explore the future of telecommunications, fraud prevention and trusted communications. Packed with insightful sessions and engaging discussions, this year's event kicked off with its opening Power Session, "Using AI to Revolutionize Telecom."

Moderated by Bruno Tabbi, President of Ignition Toll Free, the panel featured Kyle Belcher, Senior Product Manager from Somos and Bryce McWhorter, Vice President of Authentication & Integrations from Pindrop. Together, they explored the immense opportunities AI offers to the telecommunications industry while addressing the potential risks, especially in fraud prevention and customer service transformation.

Bruno Tabbi began by highlighting the often-overlooked power of voice communication, pointing out that customers who call a business are ten to fifteen times more likely to convert into buyers compared to those who only interact online. AI, he argued, holds the key to unlocking more customer engagement by removing the friction that discourages people from making calls. "More customers that are happy means more sales," Tabbi emphasized, pointing to AI's ability to improve customer satisfaction and, in turn, drive business growth.

Kyle Belcher explained that AI has long been used in telecom to analyze large datasets, but the recent advances in AI allow it to generate content and move conversations forward. This shift enables AI to not only provide insights but also help customer service agents resolve issues more effectively. He described “call-assisted AI,” where AI supports human agents by managing data in real-time, speeding up problem-solving. "You're making your people more effective and you're helping customers get solutions faster," Belcher noted, underscoring AI’s evolving role in improving customer experience.

Bryce McWhorter highlighted how AI is already reshaping the industry, with seven of the top ten U.S. banks using Pindrop’s Toll-Free call authentication services. He noted that AI can authenticate about 95% of calls, making it a valuable tool for securing customer interactions in real-time.

McWhorter further explained that AI could reverse traditional customer service processes, such as the familiar “press one for this” automated prompts. Virtual agents equipped with AI can adjust to customer needs mid-call, eliminating the frustration of having to restart an interaction. This level of flexibility, he suggested, will make future customer experiences more intuitive and seamless.

However, both McWhorter and Belcher highlighted the darker side of AI: its use in fraud. AI-powered tools, such as deepfakes, are increasingly being weaponized by fraudsters to impersonate institutions and individuals. McWhorter described how one organization discovered that in 45% of fraud events, criminals had successfully imitated one-time password (OTP) systems. He warned that the combination of conversational AI and deepfake technology is giving fraudsters powerful new tools to exploit both businesses and customers.

Belcher echoed these concerns, revealing that fraudsters are targeting high-value accounts using sophisticated AI-driven phishing schemes. He recounted a case where an AI was able to imitate a bank’s interactive voice response (IVR) system within days. As AI becomes more integrated into telecom, both panelists predicted that the industry would face an era of "bot versus bot," with both fraudsters and businesses deploying AI tools in a race to outmaneuver each other.

Despite the risks, both panelists agreed that AI adoption is set to increase dramatically in the coming months. Belcher predicted that within the next year, society will grow to trust AI more, leading to widespread implementation of AI-driven solutions. He envisioned a future where customers feel more confident that their issues will be resolved efficiently when dealing with AI, possibly more so than with human agents.

McWhorter wrapped up the session by emphasizing that while AI will continue to be used for positive advancements, it will also be exploited by bad actors. He reiterated that AI-powered tools, both legitimate and malicious, will multiply, leading to the inevitable scenario of “bot versus bot” in the fight against fraud.

The opening session of the 2024 Somos Summit provided a comprehensive overview of AI’s transformative role in telecom, from enhancing customer experiences to combating fraud. As the panelists made clear, while AI brings immense potential for progress, it also introduces new challenges. The future of AI in telecom will require a careful balance of trust and vigilance, as businesses continue to harness its power for good while safeguarding against its misuse.

To learn more about the 2024 Somos Summit and to gain access to on-demand recordings, visit www.somos.com/summit