Videos
Circles on Why Telecom Must Go AI-Native, Not AI-Add-On
Insights
- AI-native transformation requires embedding AI into the core enterprise architecture rather than layering it onto legacy systems.
- Successful transformation depends on evolving people, technology, and operating models together to unlock enterprise-wide value.
- AI-native platforms can improve customer satisfaction, increase revenue, and significantly reduce total cost of ownership.
At MWC 2026, Sanjay Kaul of Circles discusses why telecom operators must take a foundational approach to AI transformation rather than treating AI as an add-on to existing systems. He explains that becoming an AI-native organization requires rethinking every layer of the enterprise, from workforce capabilities and technology architecture to operating models and governance. The conversation explores how this holistic approach enables operators to improve customer experience, increase average revenue per user, and deliver substantial reductions in total cost of ownership. Looking ahead, Kaul argues that telecom providers that redesign their businesses around AI-native architectures will be better positioned to compete, innovate, and create long-term value.
Sanjay Kaul:
If you really want to leverage AI and turn into an AI-native telco, for instance, you got to weave AI into the enterprise core architecture. So it's bottoms up. And there are, I call it walking eight planets. Every planet represents one dimension of your operations. You have to walk them one by one, starting with your people and competence. Then you look at the tech stack you have and how it's organized in the enterprise architecture and you go on and on. And when you walk these eight planets, then you can say I'm an engineering, I'm a tech Co. But instead we rush because we have to tell media, oh, I'm in AI, we do a bolt on and that will never make you a tech company.
Samad Masood:
Your customers, what do they benefit from buying a platform and what does it enable them to do?
Sanjay Kaul:
Three KPIs that we address. First is Net Promoter Score. Second thing we do is we enhance ARPU. And the third one is amazing TCO saving. Because if they do it, it's a very big decision for them to take the whole stack out and replace with this. But I give them 50 to 60% TCO savings. So it's a phenomenal value prop from a CEO/CFO perspective. It's a bit of a pain for CIO.
