Ericsson: 88% Say AI Needs Better Connectivity
A new report from Ericsson reveals that most European enterprises now view outdated connectivity as a direct barrier to harnessing advanced technologies like AI.
Based on a comprehensive survey conducted by Censuswide of 2,500 technology decision-makers across the UK, France, Germany, The Netherlands and Italy, the report ‘State of Enterprise Connectivity in Europe’ highlights a growing urgency for businesses to adopt more powerful, secure and scalable cellular connectivity.
According to the findings, 88% of respondents believe the current state of connectivity is limiting their ability to capitalise on AI, with many identifying an apparent symbiosis between 5G and next-generation technologies.
In particular, 87% assert that 5G is vital to accelerating research and development initiatives, making robust cellular infrastructure a cornerstone for enterprise innovation.
AI and 5G: A two-way relationship
The research highlights a reinforcing loop between AI and connectivity. 85% of enterprises state that AI is instrumental in improving network performance through intelligent automation and reduced manual oversight.
At the same time, 54% strongly agree that access to secure, high-performing networks would support national ambitions to become global technology and industrial leaders.
“Businesses that want to see full returns on their digital investments must simultaneously upgrade their connectivity infrastructure.”
Without addressing the limitations of current networks, the adoption of AI and other emerging technologies risks being undercut by operational inefficiencies and reduced scalability.
Operational and financial impacts of poor connectivity
The consequences of substandard connectivity are more than theoretical. The report reveals that 28% of enterprises link unreliable networks directly to lost revenue, while 31% report increased waste and 46% associate it with higher operational costs.
Sustainability efforts are further affected as 71% of respondents indicate that poor connectivity in remote areas prevents accurate emissions monitoring, a key capability for reaching net-zero targets by 2030.
According to the findings, Europe is lagging behind global peers in deploying transformative 5G solutions. A regulatory environment that many enterprises perceive as complex and restrictive continues to impede investment.
More than a third (35%) of business leaders believe net neutrality rules limit telecom providers’ ability to offer tailored connectivity services and 38% say upgrading their network would be too complex, further delaying the rollout of next-generation infrastructure.
UK enterprises lead in recognising 5G as a strategic asset
Within the UK, 62% of executives say 5G gives them enhanced control over scaling connectivity to meet operational demands. Meanwhile, 61% say it provides better oversight of critical functions compared to 4G or fibre.
For 69% of UK businesses, 5G is the best possible investment over the next 12 months, surpassing robotics (45%) and AI (42%).
Key sectors identified to benefit from improved 5G infrastructure include energy and utilities. 86% of UK respondents point to better energy infrastructure management as a core benefit of 5G, with 82% highlighting similar advantages for water systems.
Healthcare is a significant focus, with 88% of respondents agreeing that 5G is crucial to deploying advanced technologies within the NHS to alleviate ongoing capacity and staffing challenges.
Paul McHugh, Head of Sales EMEA at Ericsson Enterprise Wireless Solutions, urged enterprises to act decisively, stating, “It is clear from this report that business leaders are increasingly aware of the benefits and importance of having robust and future-proof connectivity infrastructure.
"However, numerous barriers persist, ranging from complex regulatory and telecom environments to a lack of skills within enterprises. Overcoming these challenges is crucial if businesses want to fully leverage the benefits of next-generation technology.”
He advises enterprises unsure of how to begin upgrading their networks to partner with specialised channel and connectivity providers to bridge internal skill gaps and unlock the full value of digital transformation.
As European businesses continue navigating the shift towards AI, automation and sustainable operations, Ericsson’s latest findings are clear: without advanced connectivity, the future of enterprise innovation risks remaining just out of reach.
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