Both Samsung and Apple are setting themselves up to make money out of AI, so is Microsoft, Google, and carriers such as Telstra, Optus and Vodaphone. The emerging problems is that carriers are getting worried that the likes of Samsung could get to the AI revenue stream before they do, particular when carriers try to roll out of new AI services that are now built into the likes of the new Samsung Galaxy S25 series of smartphones and Samsung tablets.
Recently Telstra who are partnering with Accenture, did a big song and dance act around their AI future, now the national carrier is trying to build out a sustainable business via various AI models, including apps, and agents and unlike Samsung the app have to be downloaded first while Samsung is building AI functionality directly into their devices.
A hand on with the new Samsung Galaxy S25 Ultra which is a serious AI powerhouse reveals that the South Korean Company who sell a lot of devices via carriers is intensifying their on-device artificial intelligence strategy, and this is a problem for carriers in both Australia and overseas according to insiders.
Samsung’s AI assistant capability enhancement in its latest flagship is super smart and I suspect that in the future there could be a monthly fee to get access to them.
The launch of their latest Galaxy S25 series, has taken competition with carriers to another level according to industry sources who this week spoke to the Korean Herald.
Carrier Companies around the world such as Telstra are now actively launching new AI services, Samsung’s new AI assistant capability and recent upgrades to their AI offering has become an issue according to Telstra insiders who tipped off ChannelNews that carriers are concerned that key partners including Google Microsoft, Apple and Samsung are in a better position to get access to AI revenue via a device with built in capability than what the likes of Telstra can achieve via an app download.
Samsung has already integrated AI functionalities such as call recording and summarisation, translation, and writing assistance within their new device.
The big problem for carriers is that the future for AI is the embedding of the technology into a device a move that allows users to access AI features without relying on separate applications which carriers have been punting on as a future revenue earner.
Forrester research claims that Telstra has already realised that the only path to sustainable business advantage using AI lies in capturing and putting its organization’s unique and proprietary knowledge, expertise, and capabilities to work through AI models, apps, and agents.
Frederic Giron, VP, Senior Research Director claims “Rather than simply automating isolated tasks along existing business processes, the company aims to embrace agentic workflows to reinvent business processes. This isn’t just about making existing processes faster or more efficient; it’s about reimagining how work gets done in the first place”.
“The telecommunications giant understands that creating an AI advantage requires more than just sprinkling AI capabilities.” he said.
With their new S25 range of devices Samsung has upgraded its Circle to Search feature, enabling users to extract text from images and instantly initiate calls or searches using simple gestures.
Additionally, by linking Google’s conversational AI, Gemini Live, with Galaxy AI, users can seamlessly execute natural language commands across various apps right inside the device.
What carriers are concerned about is the monetization of their AI-based services. The introduction of Samsung’s built-in AI assistant could undermine telecom companies’ efforts to commercialize their own AI offerings claim observers.
In South Korea where AI services are more advanced at a carrier level than in Australia, SK Telecom adjusted its pricing strategy for its AI assistant after the launch of the S25. They have also extended a free trial period and removed usage restrictions on call summary services.
LG Uplus has also started charging for part of its call recording service.
If AI-based call summarization and other assistant functions are already available for free on Samsung’s flagship smartphones, the incentive for users to pay for similar telecom services is significantly reduced claim analysts who have started to question carriers’ future revenues.
“Customers prefer an intuitive AI experience that does not require manually launching an app. To establish a strong AI presence, telecom operators must develop cutting-edge network-based AI technologies while deepening their collaboration with smartphone manufacturers,” said an industry source, who asked for anonymity.
In response, local telecom operators are ramping up collaboration efforts with global tech giants.
SK Telecom has formed the Global Telco AI Alliance, in partnership with the likes Singtel the owner of Optus and Vodafone.
Telstra recently announced that they are set to will splash $700 million on rolling out artificial intelligence (AI) capabilities across the company, through a new joint venture with consultancy giant Accenture.
Telstra CEO Vicki Brady claims the company would invest $100 million per year over seven years, in an effort to improve business processes through AI.
The telco will consolidate its 18 data and AI providers down to just two and will build specialised AI tools for its teams to “work smarter and faster”.
The question now is whether they will get a return on investment or will overseas companies such as Microsoft, Google and Samsung strip out the revenue ahead of Telstra.
