Innovation with AI: Transforming Tech Companies for New Value Creation.

Innovating with AI: Transforming Tech Companies for New Value Creation

On March 7, 2025, at a major conference in Barcelona, James Chen, the President of Huawei's Carrier Business, delivered an impactful keynote speech titled "Innovating with AI: Transforming Tech Companies for New Value Creation.” In his address, Chen emphasized that transformation is not an endpoint; rather, the ultimate objective is to create value for customers and businesses alike.

With rapid advancements in technologies such as 5.5G, cloud computing, and artificial intelligence (AI), traditional carriers are evolving from mere connectivity suppliers into comprehensive digital service providers. Huawei has introduced a framework dubbed the “Five Ones” model, designed to facilitate this transformation. This model not only reshapes the operations and maintenance (OM) procedures but also revamps the infrastructure of these carriers, empowering them to seize transformative opportunities and continuously generate value.

Redefining Monetization Models

One of the key pillars discussed by Chen is the development of a monetization model aimed at delivering differentiated experiences. The rise of personal service scenarios—such as live streaming, business travel, and gaming—necessitates the introduction of innovative service models. These models enable carriers to monetize differentiated network experiences tailored to various users and service scenarios. AI plays a pivotal role here by facilitating precise package recommendations for users, dynamically adapting network experiences to meet specific needs, and intuitively displaying results to enhance user engagement—all in real time. Currently, over 35 carriers worldwide have integrated experience monetization models leveraging enhanced tariffing and experience-based billing.

Establishing AI-Driven Service Models

Chen also highlighted the importance of creating a unified service entry point to provide AI-driven services within smart homes. As residences become increasingly intelligent, carriers can dramatically enhance service delivery by establishing a singular service portal for smart home management. Recent initiatives from airlines in China and South Korea illustrate this trend, where AI hubs equipped with AI agents can seamlessly connect to a variety of smart home devices while leveraging multimodal interactions. These hubs enable rapid access to intelligent applications in the cloud, responding quickly to user intents and improving the overall experience.

Leveraging Cloud for B2B Services

To capitalize on the opportunities presented by digital transformation efforts across industries, Chen asserted that carriers must operate cloud platforms offering multi-service convergence. Such platforms should unlock B2B service scenarios while being equipped with advanced capabilities like cloud marketplaces and intelligent code generation. A notable example includes a North African carrier that successfully utilized a multi-cloud platform to assist thousands of businesses in over ten sectors with their digital transformation endeavors.

Integrating AI for Operational Excellence

Addressing the operational aspect, Chen introduced the concept of a foundational model using generalized AI agents and digital twins. These cutting-edge AI technologies enable carriers to redefine OM efficiency by creating digital twins for networks and services. This transformative approach allows data and scenarios to be converted into actionable knowledge and capabilities. By integrating telecom foundational technologies into these digital frameworks and continuously training and optimizing AI models, carriers are now equipped to streamline operations. A case study exemplified how AI technologies led to rapid diagnosis and resolution of network failures, reducing troubleshooting time to less than 30 minutes.

Constructing a Collaborative Infrastructure

In the age of AI, establishing a cohesive architecture that integrates resources such as network, storage, cloud, and computational power is critical. This architecture must support three key functionalities: intelligent connectivity—offering deterministic reliability and lossless connections; an intelligent cloud that accommodates heterogeneous computing capabilities; and intelligent collaboration that synchronizes all resource elements from planning to execution.

In conclusion, James Chen articulated a clear vision: leveraging AI innovation will significantly accelerate the transformation of carriers into tech companies. By collaborating with customers and providing leading products and solutions, Huawei aims to reshape business processes, operations, and infrastructure to consistently create value and capitalize on the substantial opportunities presented in the AI era.