AI Reshapes Telecom and Media Operating Models

AI Reshapes Telecom and Media Operating Models

Enterprises use AI-native platforms, data foundations and agentic workflows to improve revenue, efficiency and value, ISG Provider Lens® report says

Telecom, media and entertainment (TME) enterprises are redesigning operating models around artificial intelligence as a foundational business capability, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens® global Telecom, Media and Entertainment AI-Native Transformation Services — Strategy Transformation and Ecosystem Services report finds organizations embedding AI across core business functions. As growth in traditional businesses slows and infrastructure costs rise, enterprises in these industries are prioritizing modernization projects with measurable commercial and operational outcomes. They assess AI initiatives based on anticipated revenue growth, customer value and operational efficiency rather than technology adoption alone.

“For TME enterprises, the real test is whether AI can translate strategic intent into ongoing execution,” said Rajib Datta, partner, ISG. “Achieving that result requires shared data and an operating model that ensures strategic priorities inform daily decisions.”

Organizations are investing in decision-intelligence platforms and agentic orchestration layers to support autonomous and semi-autonomous workflows. These tools can connect actions across engineering, operations, customer engagement and monetization. Companies are using them to institutionalize AI within enterprise decision-making.

Firms are looking beyond traditional connectivity, subscriptions and advertising for growth. They are evaluating new sources including data monetization, AI-enabled personalization and dynamic pricing to derive more commercial value from digital assets. While telecom organizations seek platform and API-led revenue, media organizations are applying AI to content operations, advertising and maximizing audience value. These efforts help organizations transform customer relationships and ecosystem participation into new revenue streams with greater speed and precision.

Transformations remain stalled in many TME organizations, despite widespread experimentation and technically promising proofs of concept. Fragmented data estates, governance challenges and organizational resistance continue to hinder scaled, production-grade deployment in complex organizations. In response, companies are seeking repeatable operating frameworks, scalable delivery models and change-management programs that support enterprise-wide execution and sustained technology adoption. They seek implementation support that can deliver measurable value over time across autonomous workflows, commercial priorities and operating processes, ISG says.

“Leading TME enterprises will be distinguished by how well intelligence changes the economics of their operations,” said Yash Jethani, ISG principal analyst and lead author of the report. “Providers make a difference when they turn industry knowledge into repeatable methods that help clients execute at scale.”

The report also explores other trends in the TME ecosystem, including the growing use of cloud-native architectures to support platform-centric business models and increasing emphasis on responsible AI frameworks to address regulatory requirements.

For more insights into the transformation challenges faced by telecom, media and entertainment enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 33 providers in one quadrant: Strategy, Monetization and AI-Native Enablement.

The report names Accenture, BCG, Capgemini, Cognizant, Deloitte, EY, HCLTech, IBM, Infosys, McKinsey & Company, PwC, TCS and Tech Mahindra as Leaders in the quadrant.

In addition, EPAM Systems and Wipro are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.

The 2026 ISG Provider Lens global Telecom, Media and Entertainment AI-Native Transformation Services — Strategy Transformation and Ecosystem Services report is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

Press Contacts:

Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com

Erik Arvidson, Matter Communications for ISG
+1 978-518-4542
isg@matternow.com

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