The U.S. telecommunications postpaid segment grapples with ongoing financial risks arising from credit defaults, fraud, and revenue leakage. While traditional risk management tools like credit checks and fixed billing cycles offer a baseline, they often fall short in providing comprehensive protection. This paper critically analyzes these limitations and explores the transformative potential of emerging technologies. Specifically, it examines how the integration of artificial intelligence (AI) and blockchain-based smart contracts can offer innovative solutions for mitigating financial risks, driving operational efficiencies, enhancing fraud prevention, and ultimately improving customer satisfaction within the U.S. telecommunications. To properly demonstrate the functionality of AI-powered smart contracts, this study highlights several use cases in the telecommunications industry. With the adoption of a qualitative analysis, the study also captures the effectiveness of AI-powered smart contracts in mitigating financial risks within the U.S. telecommunications postpaid industries, while underscoring the importance of expanding blockchain adoption beyond postpaid plans and refining AI models to improve their adaptability and accuracy in financial risk management. While attempting to bridge the gap between emerging technologies and traditional practices, this study provides a roadmap for telecommunications providers that seek to use AI and blockchain to edge against various financial risks.
