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PLDT’s Smart tests paid AI service as new revenue stream

SMART Communications, Inc., the wireless arm of PLDT Inc., has started offering a paid artificial intelligence (AI) service…

Context & Analysis

Turning AI into a billable telecom product is less about one feature than a sign that Philippine operators are trying to convert data networks, billing systems, and customer reach into recurring digital-services income. For years, telco revenue has leaned heavily on voice, mobile data, and enterprise connectivity. As consumer expectations rise and competition for digital attention intensifies, operators need ways to make subscribers pay for higher-value applications rather than just gigabytes. A paid AI service lets a carrier package artificial intelligence as a subscription instead of treating it as a free trial or marketing gimmick.

The strategic point is that AI is becoming a product line, not just an internal efficiency tool. For Philippine businesses, especially small and medium enterprises already running on mobile-first workflows, a telco-delivered AI service could lower the friction of adopting new digital tools. Owners may prefer paying through their existing phone bill to managing another software subscription. The upside is that productivity features can reach shops, clinics, logistics firms, and professional services without requiring separate hardware or complex IT setup. The downside is that customers will quickly judge whether the paid feature saves real time or money. If it feels like a premium wrapper around ordinary chatbots, uptake may stall.

The regulatory and investor context matters too. As AI services process personal data, companies will face expectations under data privacy rules and consumer protection norms. Telecom regulators may also look at pricing transparency, service quality, and whether bundled features are clearly explained to customers. For PLDT shareholders, the test is important because paid digital add-ons can support average revenue per user and enterprise growth if adoption spreads beyond early adopters. Investors will watch whether Smart can turn AI into a measurable contribution to recurring revenue rather than a short-lived experiment.

What to watch next is whether Smart expands the service beyond an initial test, how it prices access for SMEs and individual subscribers, and whether it integrates AI with existing business plans. Competitor response will also be telling. If paid AI becomes a standard telco add-on, Philippine operators could become major distributors of AI tools, shaping which models, languages, and use cases gain mass-market traction in the Philippines.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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