T Integrates AI to Enhance Client Service: Will it Boost User Growth?

AT&T, Inc. T recently announced that it is currently testing the new tool, AT&T Digital Receptionist. It is a leading-edge AI native tool designed to block spam and unwanted calls. The tool integrates several large language models that help in processing incoming speech and creating responses. The digital receptionist is placed between the user and the outside world. It can prompt questions to find out the caller’s identity and purpose for calling. 

Users can develop customized criteria to get the call they actually want and filter out the rest. Close friends, family and doctors can be put on a ‘Do Not Screen List’, allowing them to reach users without any hurdle.

Spam and fraud calls are major issues in the country. AT&T currently blocks or flags more than 2 billion robocalls per month. Its new agentic AI tool will act as a buffer and protective shield. This will be a game changer for user experience. 

Following the successful testing, it will be added to the company’s existing spam filter, AT&T ActiveArmor. The company has also aimed to expand the capability of its agentic AI tool in the future. For instance, if a user just mentions the restaurant name, the tool can connect to the restaurant or make a reservation at the restaurant for the user on its own. Such initiatives to boost convenience in users’ daily lives may act as a growth catalyst for AT&T.

How Are Competitors Faring?

Verizon Communications, Inc. VZ and T-Mobile US, Inc. TMUS are AT&T’s major competitors in the U.S. telecom space. During the second quarter, Verizon introduced cutting-edge AI-powered features that will transform the customer experience. Verizon Customer Champion is a standout personalized customer service feature that leverages Google Cloud’s AI, including Google’s Gemini models, to deliver complete resolution to end users. The company is also offering 24/7 live support to cater to diverse customer schedules and preferences. For mobile users, it provides a free service, Verizon Call Filter, to block spam calls.

T-Mobile is collaborating with OpenAI to develop an intent-driven AI-decisioning platform that will significantly enhance customer service. The platform will focus on personalized service, faster response, real engagement, proactive action and greater security. T-Mobile offers the scam shield app, scam block and scam ID features to reduce calls from scammers.

T’s Price Performance, Valuation & Estimates

AT&T stock has risen 38.3% over the past year compared with the Wireless National industry’s growth of 16.2%.

Going by the price/earnings ratio, the company’s shares currently trade at 13.47 forward earnings, lower than the industry’s 13.53.

Earnings estimates for 2025 and 2026 have moved upward in the past 60 days.

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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