Verizon Taps AI to Unlock New Revenue Streams, CFO Reveals Strategy

Verizon Aims to Tap AI as New Revenue Stream, CFO Says Verizon Communications Inc. is betting big on artificial intelligence (AI) as a potential new revenue source, with the company's chief financial officer, Tony Skiadas, revealing plans to repurpose parts of its wireline network to support AI workloads. According to Skiadas, Verizon is testing ways to leverage its existing central offices, which are being freed up as copper networks are replaced by fiber-optic cables. This initiative, dubbed "V Edge," aims to utilize the space, power, and cooling facilities in these central offices to handle AI processing at scale. The financial implications of this move are significant. Verizon's wireline business has been a declining segment for the company, with revenue falling 4% year-over-year in the first quarter of 2023. However, by repurposing its existing infrastructure to support AI workloads, Verizon aims to generate new revenue streams and drive growth. Market analysts estimate that the global AI market will reach $190 billion by 2025, growing at a compound annual rate of 38%. With this in mind, Verizon's move into AI is seen as a strategic play to capture a share of this lucrative market. "Verizon is recognizing the potential for AI to drive growth and revenue," said Dan Baker, an analyst with RBC Capital Markets. "By leveraging its existing infrastructure, they can tap into this growing market without having to invest heavily in new infrastructure." Stakeholders are taking notice of Verizon's move into AI. "This is a game-changer for Verizon," said one investor, who wished to remain anonymous. "If they can successfully monetize their wireline network through AI, it could be a major catalyst for growth and increase shareholder value." While the road ahead will undoubtedly be challenging, Verizon's CFO is optimistic about the company's prospects. "We believe that V Edge has the potential to become a significant contributor to our revenue growth," Skiadas said in an interview. Looking ahead, Verizon plans to continue testing and refining its AI strategy over the next 12-18 months. The company will also be working closely with industry partners and startups to develop new AI-powered services and applications that can be deployed on its network. As the telecommunications landscape continues to evolve, Verizon's move into AI is a testament to the company's willingness to adapt and innovate in order to drive growth and stay ahead of the competition. With its existing infrastructure and strategic partnerships, Verizon is well-positioned to capitalize on the rapidly growing AI market and become a leader in this emerging space. Key Statistics: Verizon's wireline revenue fell 4% year-over-year in Q1 2023 Global AI market expected to reach $190 billion by 2025 (38% CAGR) Verizon's V Edge initiative aims to repurpose existing central offices for AI workloads Company plans to continue testing and refining AI strategy over next 12-18 months *Financial data compiled from Fortune reporting.*