Embedding AI at the Core of Telco Operations

Why It Matters

AI‑nization transforms telcos from cost‑centered utilities into agile, AI‑native enterprises, unlocking new revenue and protecting margins as traditional growth drivers wane.

Key Takeaways

• AI‑nization redefines telco models beyond simple tool adoption
• KDDI embeds AI in core processes, cutting costs and time
• Partnerships replace vendor models to integrate AI enterprise‑wide
• Speedboat subsidiary serves as testbed for AI‑native operations
• AI‑driven offers and pricing aim to automate revenue growth

Summary

At Mobile World Congress 2026, KDDI Digital Life CEO Tatsuya Hamada and Circles CRO Sanjay Kaul introduced “AI‑nization,” a strategy that moves AI from a pilot‑stage tool to the foundational architecture of telco operations.

The speakers emphasized that AI‑nization requires a complete redesign of business processes, not merely overlaying algorithms. KDDI’s “speedboat” subsidiary functions as an AI‑native testbed, delivering faster product development, reduced operating costs, and accelerated time‑to‑market. By embedding AI in backend systems, customer experience, and hyper‑personalized offers, the company reports measurable efficiency gains.

Hamada described AI‑nization as “an AI‑native business model structure,” while Kaul warned that traditional vendor‑centric models become “another toolbox on top” and hinder true integration. Their partnership model treats technology providers as joint teammates, sharing strategy and execution responsibilities.

If telcos adopt this holistic approach, they can offset declining ARPU and capex pressures by automating pricing, product design, and partner ecosystems. AI‑driven, self‑sustaining operations could become the new industry benchmark, reshaping competition and opening revenue streams beyond core connectivity.

Original Description

At Mobile World Congress 2026, executives from KDDI Digital Life and Circles explore the concept of 'AI-nization'—the process of making AI central to telco business models and operations. They explain how this approach differs from traditional AI adoption, focusing on redesigning business processes from the ground up. The discussion covers practical outcomes, such as improved efficiency and faster product development, and highlights the importance of partnership over a vendor approach. The conversation also addresses the global relevance of AI-nization and its potential to reshape competition in the telecoms sector.

Featuring:

- Tatsuya Hamada, Chief Executive Officer, KDDI Digital Life

- Sanjay Kaul, Chief Revenue Officer, Circles

Recorded March 2026

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