Ericsson study finds telecom operators lag on AI & 5G

Ericsson has published research showing that most telecom operators have yet to implement key technologies linked to growth in AI, private 5G and IoT. The study surveyed 455 senior telecom executives globally.

The findings point to a gap between confidence in new revenue opportunities and the operational changes needed to pursue them. While 90% of respondents said they were confident their organisations could unlock new revenue, many had not begun deploying the technologies they see as important to that effort.

Private 5G and enterprise connectivity ranked as the leading growth opportunity, cited by 49% of executives. Consumer and enterprise digital services with tailored performance followed at 44%, while 40% pointed to wide-area IoT connectivity.

At the same time, implementation remains limited in several areas. Some 66% had not started implementing AI-driven network operations, 61% had not begun rolling out advanced 5G features such as standalone and network slicing, and 68% had not adopted software-as-a-service-based IT platforms.

The research suggests operators broadly agree on where future growth may come from but are moving more slowly on the network and systems changes needed to support those services. More than 80% of respondents said future growth depends on scaling services rapidly, and a similar share said the ability to experiment more easily would provide a major advantage.

Execution gap

The issue comes as AI-driven applications place greater demands on telecom networks, particularly on performance and flexibility. That is increasing pressure on operators to modernise both network operations and the IT environments that support service creation and delivery.

Advanced 5G functions such as standalone architecture and network slicing have long been presented as the foundation for more tailored business and consumer services. Private 5G networks and broader enterprise connectivity services are also seen as areas where operators could generate revenue beyond traditional mobile subscriptions.

Wide-area IoT remains another potential growth area, particularly for sectors that need large-scale device connectivity. But the survey indicates many operators are still at an early stage in putting the technical groundwork in place.

This mismatch between strategy and delivery is likely to intensify questions over how quickly operators can turn interest in AI and 5G into commercial results. The figures also suggest executive confidence has yet to translate into broad implementation programmes.

A single quote accompanied the research findings.

"The opportunity ahead for the telecom industry to capture the next wave of growth is clear, from AI-driven services to private 5G and IoT enabled by new capabilities," said Razvan Teslaru, Head of Strategy, Cloud Software and Services, Ericsson. "While there is no single path to capturing that opportunity, CSPs are aligned in the capabilities required to deliver it. The challenge is that adoption of those capabilities remains limited, and this execution gap will ultimately determine who translates ambition into real growth. This will require more flexible approaches, with technology partners and new ecosystems enabling operators to move faster and unlock value."

The survey focused on senior telecom executives, suggesting the confidence reflected in the results sits at decision-making level within operators. Even so, the data indicates many businesses remain in the planning phase rather than active deployment when it comes to AI-led network operations, more advanced 5G architecture and cloud-based IT systems.

For telecom equipment and software suppliers, that leaves a market in which operators recognise the need for change but have yet to move at scale. For operators, the results underline how much work remains to build services around private networks, differentiated connectivity and IoT in ways that can generate new income streams.

The report's central finding is that most telecom executives see growth in AI, private 5G and IoT, but most operators have not yet started implementing the technologies they say are needed to pursue it.