“They have presented a blueprint for the operators that will lead the next decade.”

An artificial intelligence expert formerly with Google has identified SK Telecom’s (017670.KS) overhaul of its integrated IT systems as a benchmark for AI transformation (AX) in the global telecommunications industry. The analysis suggests that redesigning core computing structures—including sales, billing, and customer management—around AI will determine competitiveness in the telecom market for the next ten years.

According to the telecom industry on the 15th, Ofer Ronen, Vice President of Telecom at the voice AI company Sanas, who previously led contact center AI business at Google, posted on his LinkedIn on the 30th of last month. In a post titled “SK Telecom is doing what most telcos are afraid to do,” he assessed that “SK Telecom has presented a blueprint showing what it means to rebuild a telco from the inside out.”

Ronen referenced remarks made by SK Telecom CEO Jung Jae-heon at MWC26 in March, where he announced plans to completely overhaul legacy IT systems for sales, line management, and billing into structures optimized for AI. Ronen described this as a fundamental transformation of the carrier’s constitution. He noted that SK Telecom is pursuing a multi-billion-dollar plan to rebuild its sales IT, line management, billing, and network operations systems from the ground up based on AI. The goal is to shift from human-centric operations to autonomous AI-based systems.

Ronen assessed this transition as the most difficult and costly change a telecom company can attempt, precisely because it requires a complete overhaul of the IT systems underpinning core revenue-generating businesses. Yet he stressed, “The risk of becoming obsolete by not rebuilding is greater than the risk of business failure during the reconstruction process.”

Fragmented IT Structures Block AI Adoption… SKT Is Replacing the Nervous System

Ronen diagnosed that the biggest obstacle to AI transformation in telecom is not the performance of AI models, but the existing siloed IT architecture where sales, billing, and customer service systems are disconnected from one another. This structure makes it difficult for AI to make real-time decisions and execute tasks. He likened the approach of many carriers—adding AI features like chatbots while leaving this structure intact—to “putting a fresh coat of paint on an old engine.”

In contrast, SK Telecom is redesigning its core systems around AI. Ronen described this as “work akin to replacing a telco’s nervous system.”

He summarized SK Telecom’s overhaul strategy into three main phases. First, the company integrated network performance data with customer complaint data. Second, it transitioned to an API-based modular system, enabling AI agents to instantly process tasks like plan changes without human intervention. Finally, it deployed a unified AI agent across all touchpoints, from the T World app to offline stores, to deliver consistent, personalized service.

The overhaul also includes enhanced security measures. Ronen explained that following a major customer data breach involving 23 million records last year, SK Telecom incorporated a Zero Trust security framework into this redesign, where AI autonomously monitors the system.

“AI Is an Infrastructure Shift, Not Software”… A Leading Indicator for the Next Decade

Ronen pointed out that many carriers fail to achieve results because they start by introducing AI features without first completing the prerequisite steps of data integration and execution system modernization.

“Over the next decade, the operators that will lead the telecom market will be those that embrace AI as an infrastructure transformation, not merely a software feature,” he said. “SK Telecom’s investment in its integrated IT systems is a leading indicator showing the direction the industry is heading.”

Ronen’s assessment suggests that SK Telecom’s attempt to reorganize its core corporate infrastructure around AI—going beyond simple technology adoption—could serve as a milestone for gauging the direction of AI transformation in the global telecom industry. In particular, the company’s willingness to pursue a complete redesign without fearing a break from legacy systems is expected to become a crucial reference case for carriers seeking to secure AI competitiveness in the future.