‘AI in the telco context requires regulatory oversight’

KUCHING: With the rise of artificial intelligence (AI) in the telecommunications (telco) sector, analysts stressed that the sector requires regulatory oversight to counter cybersecurity threats on telco users.

In a report, the research team at Kenanga Investment Bank Bhd (Kenanga Research) highlighted: “We believe that AI in the telco context requires regulatory oversight to ensure that ESG pillars in cybersecurity are upheld.

“This is to counter cybersecurity threats to telco users arising from AI that includes the perpetration of online scams, proliferation of deep fakes, phishing, etc.”

The development of AI governance policies is essential to inspire trust and displace suspicion surrounding AI. Therefore, legislation and guidelines should be in place to counter cybersecurity threats to the telco industry and its users arising from AI.

This includes the perpetration of online scams, proliferation of deep fakes, phishing, etc.

Cybersecurity experts also believe that organisations and digital citizens should leverage on AI as an effective tool to enhance cybersecurity. In other words, this involves ‘using AI to fight AI’.

Overall, Kenanga Research said, it believed that investors are less cautious on 5G as monetisation opportunities emerge from selling managed solutions and cloud offerings to enterprise clients in the immediate term.

“Furthermore, as adoption of generative AI cloud solutions gain momentum, this could emerge as an earnings growth driver for telco operators over the longer term.

“On top of that, the looming announcement of the official 5G Dual Network policy directive would finally resolve uncertainty that has weighed on sector sentiment,” it said.

As such, it maintained its ‘overweight’ recommendation on the sector as it is optimistic on monetisation opportunities from enterprise clients emanating from 5G solutions, managed services, and upcoming generative AI cloud offerings.