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Why AI is redefining customer experience in utilities 

Insights Why AI is redefining customer experience in utilities 
Hansen News
Written By

Hansen News

I recently joined Utilities Technology Council’s (UTC) C-Suite Conversations podcast to talk about one of the most important shifts taking place across the utilities industry: the move from traditional customer service to intelligent, proactive and highly personalised customer experiences. 

In this piece, I share a little of what we touched on. To listen to the full conversation, please click here. 

Customer expectations have moved on 

For decades, many of the processes that sit behind utility customer service have remained largely unchanged. Customers received a bill, called to report an outage, logged into a portal to find information or waited to speak with a representative. That model served the industry for a long time, but expectations have moved on. 

Customers no longer benchmark their utility experience against other utilities. They compare it with the best digital experiences they have every day.

Today’s customers expect service to be simple, immediate and available on their terms. If they can book travel, manage banking or order transport in a few clicks, they increasingly expect that same level of control and convenience from their energy provider. That is especially true for younger generations, who want access to information instantly and prefer to decide when, where and how they engage. 

Removing friction from the experience 

One of the biggest opportunities in front of us is to remove friction from the customer experience. Password resets, multiple portals, long wait times and repeated handovers between service representatives all create unnecessary barriers. Customers do not want to work hard to find the information they need. Increasingly, they are asking a more direct question: why should I have to look for it at all? 

From portals to conversations 

That is where artificial intelligence has the potential to fundamentally change the model – and it is a future we at Hansen are already working on now. 

Through Hansen’s AI Virtual Agent, we are helping utilities move beyond basic chatbots and static self-service. The solution is designed specifically for utility customer service environments and integrates with customer information systems, including Hansen CIS, so it can do more than answer simple questions. It can support real service interactions -from payments and payment arrangements to account updates, move-in and move-out requests, outage communications and routine billing enquiries. 

Instead of logging into a portal and navigating menus, a customer could simply ask for what they need. How much energy have I used this month? What will my next bill look like? Can I change my payment arrangement? An AI assistant can understand the request, retrieve the right information and respond immediately, including with analysis or visualisation where helpful. 

The future of customer service is not about making people use software better. It is about making the interaction feel more like a natural conversation.

That distinction matters. For utilities, the value is not in adding another digital channel. It is in creating an intelligent, integrated layer that can work across voice, SMS, email and chat, while still handing over to a human agent when the interaction becomes complex, sensitive or better suited to a person. 

Automation with a customer purpose 

At Hansen, we see AI playing a central role in that future. Our Hansen AI Virtual Agent is built to work alongside customer service teams, not replace the human connection that remains so important in utilities. The goal is not automation for automation’s sake. It is about improving the customer experience by reducing the moments people find most frustrating: waiting on hold, being transferred, repeating information, being constrained by service hours or having to start again when a conversation moves between channels. 

We are already seeing how this can change day-to-day operations. In live utility environments, Hansen’s AI Agent is handling high-volume enquiries, supporting concurrent conversations, helping customers complete routine transactions and giving human representatives more time to focus on complex, higher-value customer needs.  

That is the real opportunity: using AI to increase capacity, improve consistency and make the service experience feel more responsive. 

Supporting the next generation of utility workers 

There is also a major workforce dimension to this transformation. Utilities are facing a generational shift, with experienced employees retiring and taking decades of knowledge with them. At the same time, newer employees expect modern digital tools. AI can help bridge that gap by supporting knowledge transfer, guiding processes and helping people learn from established ways of working. 

Moving from reactive to proactive service

The industry also has an opportunity to move from reactive service to proactive engagement. Instead of waiting for customers to call about an outage, a bill or a service interruption, utilities can use data and intelligence to communicate earlier, provide more transparency and anticipate needs before they become issues.

This is also where Hansen’s work is extending beyond the traditional call centre. AI can help utilities proactively notify customers about service issues, planned works, leak alerts or payment-related information through the channels customers already use. In practice, this means moving from a model where customers have to chase answers to one where utilities can anticipate the next best action and communicate before the customer needs to ask.

AI gives utilities the opportunity to move from reacting to customer issues to anticipating customer needs.

The biggest changes are still ahead

Over the next three to five years, I believe many long-established processes across the utilities industry will change significantly. The most exciting part is that this is no longer theoretical. With Hansen’s AI Virtual Agent, we are already bringing conversational and generative AI into real utility customer service environments in a way that is practical, secure and grounded in industry workflows.

This matters because not all AI is built for this environment. Generic AI tools don’t understand rate structures, meter data or regulatory context and in a regulated industry, that gap is the difference between AI that genuinely helps and AI that creates new problems. Purpose-built, utility-specific AI is trained on this context from the start, which is what allows it to operate safely and effectively within real utility workflows.

Consumption and billing information will become more transparent. Customers will have greater visibility of their usage and costs as they happen, rather than being surprised at the end of the month. More flexible payment models will become easier to support. And AI will increasingly help utilities deliver faster, smarter and more personalised service across every interaction.

For me, the key takeaway is simple: AI is not a distant concept for utilities. It is already reshaping how we think about customer experience, operational efficiency, knowledge transfer and innovation. At Hansen, we are focused on making that shift practical for utilities – by embedding AI into the workflows, systems and service moments that matter most.

The biggest changes are still ahead of us – and the organisations that embrace them thoughtfully will be best placed to meet the expectations of the next generation of utility customers.

listen to the full conversation

What does “modernise with precision” mean for Tier-1 telecom operators?

“Modernise with precision” describes a low-risk, targeted approach to BSS/OSS modernisation where operators upgrade only the parts of their digital stack that create the greatest impact. Instead of embarking on high-risk, multi-year full-stack replacements, Tier-1 telcos selectively introduce cloud-native BSS/OSS, API-driven telecom architecture, AI-ready data layers, and TMF-compliant BSS components. 

This modular strategy reduces cost and disruption, allowing operators to strengthen areas such as product agility, order orchestration, customer experience, and operational efficiency while maintaining stability in core environments. It aligns directly with TM Forum’s Open Digital Architecture (ODA), which encourages a composable, interoperable, future-proof approach to telco transformation.  

Why is time-to-market so important for telecom monetisation today?

Telecom monetisation increasingly depends on the ability to respond quickly to new commercial opportunities – from enterprise IoT solutions and digital services to 5G monetisation, wholesale partnerships, and B2B vertical offerings. In this environment, operators that can design, package, and activate new services in days rather than months gain a clear revenue advantage. 

Legacy catalogues, rigid product hierarchies, and tightly coupled BSS architectures make rapid innovation difficult. Modern operators therefore prioritise catalog-driven architecture, agile/composable BSS, and cloud-native BSS capabilities to give business teams control over offer creation without relying on long IT delivery cycles. Faster launch cycles = faster monetisation. 

What is slowing down product launch cycles for many telcos?

The primary obstacles are deeply entrenched in legacy architecture: hard-coded product models, outdated catalogues, nonstandard integrations, and heavy IT dependencies. These constraints slow down even minor product changes, creating friction between commercial teams and IT. 

Modern telcos are replacing these bottlenecks with TMF-compliant BSS, cloud-native catalogues, API-driven BSS integrated via TMF Open APIs, and low/no-code configuration tools. These solutions allow product owners to create and test offers independently, ensuring the Digital BSS backbone supports true agility. 

How can telecom operators reduce order fallout and manual intervention?

Order fallout typically stems from fragmented systems, inconsistent data models, and brittle custom integrations across BSS/OSS chains. When orchestration spans numerous legacy systems, even small discrepancies can cause orders to fail. 

Operators can dramatically reduce fallout rates by adopting zero-touch service orchestration, modern order management modernisation, end-to-end automation, and a unified data model across their Digital OSS and Digital BSS layers. Cloud-native telecom systems and order orchestration for telecom remove reliance on manual rework, minimise delays, and improve service accuracy – all essential to delivering predictable customer experiences. 

Why is accuracy so important for B2B and wholesale customer experience?

For enterprise and wholesale customers, trust is built on precision. A single misquote, incorrect configuration, or missed activation can lead to delays, SLA breaches, revenue disputes, and strained relationships. These segments rely on highly controlled, predictable fulfilment processes – particularly as operators expand into 5G edge services, network slicing, managed security, and outcome-based contracts. 

Improving accuracy requires strengthening the underlying architecture – through modern CPQ for telecom, clean data models, cloud-native BSS/OSS, and robust API-driven telecom architecture. When quoting, ordering, provisioning, and billing are accurate, customer satisfaction increases naturally. 

How does cloud, AI, and API-driven architecture support telecom modernisation?

Cloud-native platforms provide the scalability, flexibility, and deployment speed needed to support modern telecom services. AI introduces intelligence into operations, enabling predictive analytics, anomaly detection, and proactive assurance. APIs – especially TMF Open APIs – ensure new components integrate cleanly with legacy systems. 

Together, AI-powered BSS/OSS, cloud-native architecture, and API-driven integration create a digital foundation that supports continuous innovation, reduces technical debt, and enables operators to deliver new services more efficiently. This trio is central to future-proofing the telco stack. 

What is TM Forum’s Open Digital Architecture (ODA) and why does it matter?

TM Forum’s Open Digital Architecture (ODA) is an industry-standard framework designed to help telcos simplify, modularise, and modernise their BSS/OSS environments. ODA promotes interoperability, composability, and openness so operators can integrate new capabilities without heavy customisation or vendor lock-in. 

For Tier-1 operators, ODA serves as a blueprint for transitioning from monolithic legacy stacks to cloud-native, API-driven, modular BSS/OSS infrastructure. By adopting ODA-aligned solutions, operators speed up integration, lower deployment risk, and reduce long-term operational cost. 

How is Hansen involved in TM Forum and ODA?

Hansen aligns its architecture directly to TM Forum’s ODA principles and has contributed to the development of one of TM Forum’s recognised industry standards. This reinforces a commitment not just to following best practices, but to shaping them. 

Hansen’s portfolio of cloud-native, AI-powered, API-driven Digital BSS/OSS modules is built on TMF Open APIs and composable design principles. This ensures seamless interoperability in multivendor environments and helps operators modernise safely and incrementally. 

Can operators modernise their BSS/OSS without a full-stack replacement?

Yes – and in fact, most Tier-1 operators now prefer incremental transformation. Full-stack replacement is high risk, slow, and expensive. By contrast, modular modernisation allows operators to introduce new BSS/OSS capabilities – catalogues, orchestration layers, charging engines, customer management, monetisation components – without destabilising the existing ecosystem. 

This approach reduces risk, accelerates value, and aligns with ODA’s principles of composability and openness. Operators can modernise at their own pace while still maintaining service continuity. 

How does modular modernisation reduce risk?

Modular transformation focuses on improving specific parts of the architecture – such as product agility, order accuracy, unified data, or 5G monetisation – without changing everything at once. Each module is integrated, tested, and scaled independently, which reduces disruption and improves predictability. 

It also allows operators to retire legacy systems gradually, reducing technical debt over time while still realising near-term efficiency and revenue gains. This is why agile/composable BSS is now the preferred model for Tier-1 telecom transformation. 

What operational improvements can telcos expect from a unified data model?

A unified, AI-ready data model brings real-time visibility across commercial and operational processes, enabling faster decision-making and more reliable service execution. It also allows operators to detect issues earlier, automate root cause analysis, and reduce order fallout. 

This consistent data foundation is essential for AI-powered BSS/OSS, predictive assurance, next-best-action recommendations, and advanced analytics. It ultimately improves operational efficiency, accuracy, and customer experience – three core pillars of modern telecom performance. 

Why is Customer Experience (CX) tightly linked to operational excellence? 

Most customer experience problems – delays, incorrect orders, billing errors, missed SLAs – originate from inefficiencies within the internal BSS/OSS engine. When operators modernise their Digital BSS/OSS processes, eliminate manual workarounds, and ensure accurate orchestration and service activation, the customer experience improves naturally. 

This is particularly true for enterprise and wholesale customers, where CX is defined by precision, predictability, and contract performance. Improving CX requires improving the processes beneath it. 

How do Hansen’s solutions fit into a Tier-1 telco transformation strategy?

Hansen provides cloud-native, API-driven, TMF-compliant, AI-powered Digital BSS/OSS modules that integrate smoothly into hybrid and legacy environments. Operators can use them to strengthen catalog agility, automate order flows, unify data, enhance monetisation, or improve service reliability – without needing to replace their entire BSS/OSS stack. 

This flexibility supports transformation at the operator’s own pace, aligned to business priorities, regulatory requirements, and commercial objectives. 

What benefits can operators expect from a layered or hybrid modernisation approach?

A layered or hybrid approach allows operators to combine existing systems with cloud-native components, enabling transformation without disruption. Key benefits include: 

  • Faster time-to-market for new offers 
  • Improved order accuracy and reduced fallout 
  • Lower cost-to-serve through automation 
  • Stronger customer experience 
  • Gradual reduction of technical debt 
  • Alignment with ODA and modular architecture principles 

This approach balances stability with innovation – ideal for Tier-1 operators. 

How do industry standards such as ODA accelerate telecom digital transformation?

Industry standards like TM Forum ODA and TMF Open APIs reduce integration complexity, promote interoperability, and give operators a trusted blueprint for modernisation. They ensure that new BSS/OSS components can plug into existing environments without custom engineering. 

By reducing dependence on bespoke integrations and enabling modular deployment, standards significantly lower long-term cost and accelerate transformation across the business. They also future proof the architecture for new technologies, including AI, automation, and 5G service innovation. 

1. What does “modernise with precision” mean for Tier-1 telecom operators?

“Modernise with precision” describes a low-risk, targeted approach to BSS/OSS modernisation where operators upgrade only the parts of their digital stack that create the greatest impact. Instead of embarking on high-risk, multi-year full-stack replacements, Tier-1 telcos selectively introduce cloud-native BSS/OSS, API-driven telecom architecture, AI-ready data layers, and TMF-compliant BSS components.
This modular strategy reduces cost and disruption, allowing operators to strengthen areas such as product agility, order orchestration, customer experience, and operational efficiency while maintaining stability in core environments. It aligns directly with TM Forum’s Open Digital Architecture (ODA), which encourages a composable, interoperable, future-proof approach to telco transformation.

2. Why is time-to-market so important for telecom monetisation today?

Telecom monetisation increasingly depends on the ability to respond quickly to new commercial opportunities – from enterprise IoT solutions and digital services to 5G monetisation, wholesale partnerships, and B2B vertical offerings. In this environment, operators that can design, package, and activate new services in days rather than months gain a clear revenue advantage.
Legacy catalogues, rigid product hierarchies, and tightly coupled BSS architectures make rapid innovation difficult. Modern operators therefore prioritise catalog-driven architecture, agile/composable BSS, and cloud-native BSS capabilities to give business teams control over offer creation without relying on long IT delivery cycles. Faster launch cycles = faster monetisation.

 

3. What is slowing down product launch cycles for many telcos?

The primary obstacles are deeply entrenched in legacy architecture: hard-coded product models, outdated catalogues, nonstandard integrations, and heavy IT dependencies. These constraints slow down even minor product changes, creating friction between commercial teams and IT.
Modern telcos are replacing these bottlenecks with TMF-compliant BSS, cloud-native catalogues, API-driven BSS integrated via TMF Open APIs, and low/no-code configuration tools. These solutions allow product owners to create and test offers independently, ensuring the Digital BSS backbone supports true agility.

4. How can telecom operators reduce order fallout and manual intervention?

Order fallout typically stems from fragmented systems, inconsistent data models, and brittle custom integrations across BSS/OSS chains. When orchestration spans numerous legacy systems, even small discrepancies can cause orders to fail.
Operators can dramatically reduce fallout rates by adopting zero-touch service orchestration, modern order management modernisation, end-to-end automation, and a unified data model across their Digital OSS and Digital BSS layers. Cloud-native telecom systems and order orchestration for telecom remove reliance on manual rework, minimise delays, and improve service accuracy – all essential to delivering predictable customer experiences.

5. Why is accuracy so important for B2B and wholesale customer experience?

For enterprise and wholesale customers, trust is built on precision. A single misquote, incorrect configuration, or missed activation can lead to delays, SLA breaches, revenue disputes, and strained relationships. These segments rely on highly controlled, predictable fulfilment processes – particularly as operators expand into 5G edge services, network slicing, managed security, and outcome-based contracts.
Improving accuracy requires strengthening the underlying architecture – through modern CPQ for telecom, clean data models, cloud-native BSS/OSS, and robust API-driven telecom architecture. When quoting, ordering, provisioning, and billing are accurate, customer satisfaction increases naturally.

6. How does cloud, AI, and API-driven architecture support telecom modernisation?

Cloud-native platforms provide the scalability, flexibility, and deployment speed needed to support modern telecom services. AI introduces intelligence into operations, enabling predictive analytics, anomaly detection, and proactive assurance. APIs – especially TMF Open APIs – ensure new components integrate cleanly with legacy systems.
Together, AI-powered BSS/OSS, cloud-native architecture, and API-driven integration create a digital foundation that supports continuous innovation, reduces technical debt, and enables operators to deliver new services more efficiently. This trio is central to future-proofing the telco stack.

7. What is TM Forum’s Open Digital Architecture (ODA) and why does it matter?

TM Forum’s Open Digital Architecture (ODA) is an industry-standard framework designed to help telcos simplify, modularise, and modernise their BSS/OSS environments. ODA promotes interoperability, composability, and openness so operators can integrate new capabilities without heavy customisation or vendor lock-in.
For Tier-1 operators, ODA serves as a blueprint for transitioning from monolithic legacy stacks to cloud-native, API-driven, modular BSS/OSS infrastructure. By adopting ODA-aligned solutions, operators speed up integration, lower deployment risk, and reduce long-term operational cost.

8. How is Hansen involved in TM Forum and ODA?

Hansen aligns its architecture directly to TM Forum’s ODA principles and has contributed to the development of one of TM Forum’s recognised industry standards. This reinforces a commitment not just to following best practices, but to shaping them.
Hansen’s portfolio of cloud-native, AI-powered, API-driven Digital BSS/OSS modules is built on TMF Open APIs and composable design principles. This ensures seamless interoperability in multivendor environments and helps operators modernise safely and incrementally.

9. Can operators modernise their BSS/OSS without a full-stack replacement?

Yes – and in fact, most Tier-1 operators now prefer incremental transformation. Full-stack replacement is high risk, slow, and expensive. By contrast, modular modernisation allows operators to introduce new BSS/OSS capabilities – catalogues, orchestration layers, charging engines, customer management, monetisation components – without destabilising the existing ecosystem.
This approach reduces risk, accelerates value, and aligns with ODA’s principles of composability and openness. Operators can modernise at their own pace while still maintaining service continuity.

10. How does modular modernisation reduce risk?

Modular transformation focuses on improving specific parts of the architecture – such as product agility, order accuracy, unified data, or 5G monetisation – without changing everything at once. Each module is integrated, tested, and scaled independently, which reduces disruption and improves predictability.
It also allows operators to retire legacy systems gradually, reducing technical debt over time while still realising near-term efficiency and revenue gains. This is why agile/composable BSS is now the preferred model for Tier-1 telecom transformation.

11. What operational improvements can telcos expect from a unified data model?

A unified, AI-ready data model brings real-time visibility across commercial and operational processes, enabling faster decision-making and more reliable service execution. It also allows operators to detect issues earlier, automate root cause analysis, and reduce order fallout.
This consistent data foundation is essential for AI-powered BSS/OSS, predictive assurance, next-best-action recommendations, and advanced analytics. It ultimately improves operational efficiency, accuracy, and customer experience – three core pillars of modern telecom performance.

12. Why is Customer Experience (CX) tightly linked to operational excellence?

Most customer experience problems – delays, incorrect orders, billing errors, missed SLAs – originate from inefficiencies within the internal BSS/OSS engine. When operators modernise their Digital BSS/OSS processes, eliminate manual workarounds, and ensure accurate orchestration and service activation, the customer experience improves naturally.
This is particularly true for enterprise and wholesale customers, where CX is defined by precision, predictability, and contract performance. Improving CX requires improving the processes beneath it.

13. How do Hansen’s solutions fit into a Tier-1 telco transformation strategy?

Hansen provides cloud-native, API-driven, TMF-compliant, AI-powered Digital BSS/OSS modules that integrate smoothly into hybrid and legacy environments. Operators can use them to strengthen catalog agility, automate order flows, unify data, enhance monetisation, or improve service reliability – without needing to replace their entire BSS/OSS stack.
This flexibility supports transformation at the operator’s own pace, aligned to business priorities, regulatory requirements, and commercial objectives.

14. What benefits can operators expect from a layered or hybrid modernisation approach?

A layered or hybrid approach allows operators to combine existing systems with cloud-native components, enabling transformation without disruption. Key benefits include:
• Faster time-to-market for new offers
• Improved order accuracy and reduced fallout
• Lower cost-to-serve through automation
• Stronger customer experience
• Gradual reduction of technical debt
• Alignment with ODA and modular architecture principles
This approach balances stability with innovation – ideal for Tier-1 operators.

15. How do industry standards such as ODA accelerate telecom digital transformation?

Industry standards like TM Forum ODA and TMF Open APIs reduce integration complexity, promote interoperability, and give operators a trusted blueprint for modernisation. They ensure that new BSS/OSS components can plug into existing environments without custom engineering.
By reducing dependence on bespoke integrations and enabling modular deployment, standards significantly lower long-term cost and accelerate transformation across the business. They also future proof the architecture for new technologies, including AI, automation, and 5G service innovation.