Dive Brief:
- Verizon is building on its AI investments to improve its customer experience capabilities and support corporate generative AI network capacity, executives said on a Q4 2024 earnings call last week.
- The first two parts of the wireless provider’s three-pronged AI strategy are focused on CX, according to Hans Vestberg, chairman and CEO of Verizon. The technology is driving better customer service by connecting callers to the right agents with Fast Pass and enabling personalization by suggesting tailored offers and products for each customer through MyPlan.
- The third prong of the strategy is Verizon AI Connect, a suite of offerings leveraging the company’s existing expertise and investments to make it a player in the AI ecosystem, according to Kyle Malady, EVP and CEO of Verizon Business Group. The company plans to offer solutions to help corporate customers roll out AI at scale.
Dive Insight:
Verizon is leaning into generative AI to fuel growth in both its consumer and business markets.
The company’s consumer applications continue to focus on standing out with personalization and customer service. Nearly half of Verizon’s consumer phone base now uses MyPlan, an unlimited plan that lets customers customize the add-ons and services they want, according to Sowmyanarayan Sampath, EVP and CEO of Verizon Consumer Group.
“Customers love it,” Sampath said during the call. “They like the structure of it, they like the ability to get access to unique offerings, and it's truly differentiated in the market.”
The combination of personalization and better customer service is also designed to help Verizon reduce customer churn, Sampath previously said in an October Q3 2024 earnings call.
The effort may be paying off. Total wireless service revenue, including both consumer and business customers, was up 3.1% year over year to $20 billion during the fourth quarter, according to a company earnings presentation. The revenue growth was up from 2.7% in Q3 2024.
Experience from the network provider’s AI efforts, as well as its connectivity and edge computing capabilities, will help it launch its Verizon AI Connect strategy, according to Malady. Companies including Google and Meta have already purchased capacity in Verizon’s network.
“As we take stock of our existing assets, Verizon's ability to be a foundational player in the AI ecosystem is clear,” Malady said.
