Posted by Harry Baldock: The Chinese tech giant says AI agents will not only help telcos become more efficient, but will open crucial new revenue streams
For many years now, the global telecommunications industry has been racing to achieve the somewhat amorphous goal of ‘digital transformation’, focused on replacing hardware with software, shift workloads to the cloud, and incorporate digital technologies. Today, in the age of AI, this digital transformation has become a mere stepping stone to a far more paradigmatic shift for telcos: the move towards comprehensive digital intelligence, incorporating AI and automation throughout operations.
For Huawei, this is less a change in direction than it is the natural next step of digital strategy. Digitalisation of telco functions offered the industry a huge wealth of data, as well as the operational agility to begin using it effectively. Huawei first introduced a formal AI strategy back in 2018, aiming to use AI as a catalyst for this data boom across the telco sector. At that time, AI served primarily as a reporting or analytical tool, offering insights and limited automation.
Fast forward to 2025, and rapid advances in AI technology have seen the development of AI agents, fully collaborative operational partners capable of making data-driven decisions and acting upon them fully autonomously. The agentic AI revolution is already underway and, according to Huawei, telcos cannot afford to be left behind.
Digital twins and Agentic AI combine for intelligent networks
Huawei’s core AI strategy in the agentic AI era is built upon the powerful, synergistic convergence of two key technologies: digital twins and agentic AI.
This fusion establishes a new operational paradigm where human expertise works in close collaboration with specialised, multi-layered AI agents. The digital twin acts as a virtual, real-time, and highly accurate replica of the physical network, creating a risk-free environment for experimentation.
This virtual playground allows AI to explore complex scenarios, model failures, and test automated decisions without ever impacting live services. The AI then uses this simulation capability to move beyond simply reactive fault resolution, instead becoming a fully autonomous, intelligent system capable of accurately predicting faults, self-healing, and self-optimising in real time.
This powerful combination, creating a new operating model for telcos, was at the heart of Huawei’s demonstrations at this year’s MWC Barcelona, including breakthroughs for both fixed and 5G networks.
A multi-agent framework for O&M
Operations and maintenance (O&M) is an area where this combination is particularly effective, with Huawei leveraging this dual strategy to achieve unprecedented levels of automation. The company’s approach is predicated on an AI multi-agent framework, where specialised intelligent agents operate and communicate across different network domains (e.g., transport, core, and RAN). These agents are tasked with specific functions, such as fault detection in a single domain or performance optimisation, but collaborate closely, using the predictive and simulation capabilities of the digital twin to contextualise their actions and resolve cross-domain issues.
This collaborative structure enables a complete closed-loop automation chain, which Huawei describes as ‘perception–analysis–decision–execution’. The agents work in real time to intelligently detect subtle anomalies, rapidly demarcate complex cross-domain faults, precisely localise the root cause of issues, and initiate automated closed-loop handling.
For operators, the benefits are significant. Faults can be identified and resolved in seconds rather than minutes, resulting in a much improved experience for customers. One customer reported consumer churn was reduced by 57% after incorporating these agents.
AI with OSS/BSS
The benefits of AI agents extend far beyond network management. AI agents can also be tailored for critical Business Support Systems (BSS) and Operational Support Systems (OSS) roles, driving up efficiencies and even generating new revenue streams.
Huawei’s work in this area is built on its unified LLM Engine agent platform, which hosts numerous specialised agents. Human engineers can use simple language to present a problem to the agents on this platform and built-in Retrieval-Augmented Generation (RAG) capabilities ensure that the agents answer the prompt using predefined data sets. This not only ensures the answers generated represent best practice, but also ensures data security, providing greater control over the data these agents interact with.
Alongside lightweight analytics models, these agents can assist in complex, mission-critical decision-making processes. They transform cumbersome, multi-step business workflows into streamlined, intelligent interactions.
New revenue streams with business agents
- Leveraging a comprehensive AI-Native strategy, agents in the BSS domain can also see AI agents deployed across a range of revenue-generating contexts. For example:
- Customer Relationship Management (CRM): agents predict churn risk, and suggest hyper-personalised product bundles, moving marketing from mass campaigns to precise, data-driven targeting. In addition, in the B2B business domain, agents help account managers gain insights into lead opportunities, prepare materials for high-level visits, generate solutions, forecast profitability, and review contract risks, significantly improving business processing efficiency and accelerating business growth.
- Convergent Billing System (CBS): offering Design Agents can reduce the time to market for packages, significantly accelerating operators’ business innovation and revenue realisation. Throughout the billing process, Huawei CBS enables Intelligent Bill Run Management, Intelligent Invoice Agent, Intelligent Dispute Resolution, and Intelligent Dunning and Payment. CBS deeply integrates AI into the entire billing and business operations process this creates a zero-confusion billing experience for end-users, solidifying the foundation for sustainable business growth driven by superior
- customer experience. Artificial Intelligence Contact Center (AICC): AI is available for agents to help drive higher productivity and an enhanced employee experience, AI performs two broad functions, real-time call guidance and robotic process automation, through capabilities like post-call summarisation, suggest scripts to agents for targeted response, support agents with the right information through knowledge recommendations, AI-powered voice/chat/video bots for outbound marketing and leverages AI-powered insights about customers’ product and channel preferences to provide personalised marketing messages.
- Mobile Money: agents assist in fraud detection and complex transaction monitoring, assuring security while streamlining customer enrolment and service usage.
Ultimately, we are seeing AI used to streamline core business processes, reduce the time-to-market for new services, and drive substantial new revenue streams through more precise commercial execution. For Huawei, agentic AI will form the foundation of a new telco operating and business model, one in which autonomous intelligence drives efficiency, resilience, and, crucially, sustainable growth in an increasingly competitive market.
A benchmark for digital intelligence transformation in telecoms
Huawei’s recent recognition at the World Communication Awards reinforces that its vision for digital intelligence is already taking shape with global operators. The company secured the Silver Award for Total Experience, demonstrating how intelligent agents can transform enterprise engagement and service assurance. By reducing business processing time and speeding up repair cycles, these agents enable faster, more responsive interactions for enterprise customers.
The second Silver Award, in the Best Digital Transformation Programme category, points to structural change within network operations. By combining automated diagnostics with closed-loop execution, operators are cutting manual workloads and accelerating fault resolution, while strengthening the commercial foundations for new digital services. Together, the wins underline how far Huawei has come since first introducing its AI strategy in 2018. What began with analytics and automation has evolved into collaborative AI agents that elevate customer experience, reshape O&M, and drive commercial outcomes. For operators pursuing digital intelligence, these awards signal a mature and scalable model for AI adoption, and a glimpse of the new operating model the industry is moving toward. Huawei betting big on telecoms’ Agentic AI revolution
