Disruptive workforce dynamics: the impact of AI and technology in the telecommunication industry

Artificial intelligence (AI) is often examined as an independent driver of changes in employment and productivity. However, in firm environments, AI is usually implemented alongside other digital technologies. This study investigates the relationships among AI exposure, the use of combined digital technologies, and their impact on employment and firm performance in the telecommunications sector. The analysis focuses on the integration of AI with cloud technologies (software-defined networking (SDN) and network functions virtualization (NFV)) and advanced network technologies beginning with 4G.Using panel data from nine major telecommunications companies between 2016 and 2024, the study examines how AI and broader digital technology adoption relate to employment patterns, productivity, and financial results. The findings show that AI exposure alone is not significantly linked to employment changes. In contrast, wider adoption of digital technologies is more closely linked to workforce adjustments, especially when cloud and network technologies are implemented alongside AI. Overall, the results suggest that employment changes in the telecommunications sector are more closely linked to the adoption of integrated digital technologies than to AI exposure alone. The findings also show limited evidence that AI exposure or combined digital technologies significantly boost productivity or firm revenue growth during the observed period. These results emphasize the importance of viewing technological change in telecommunications as an integrated digital transformation rather than focusing solely on AI.