Verizon Business Survey: AI & 5G Drive IoT Success

The Internet of Things (IoT) has officially moved from a futuristic concept to a cornerstone of modern enterprise strategy. A recent Verizon Business survey of 500 companies actively using IoT reveals a market brimming with confidence, driven by tangible returns on investment and accelerated by a suite of powerful emerging technologies.

The findings show businesses are not just experimenting with IoT – they are scaling it, embedding it deeply within their operations and reaping significant rewards in both efficiency and productivity.

At the heart of the soaring enthusiasm is the convergence of IoT with artificial intelligence, with the survey highlighting how AI is acting as a significant catalyst for IoT adoption.

As businesses seek to harness the vast oceans of data generated by their connected devices, AI provides the intelligence needed to turn that data into actionable, real-time insights, creating a virtuous cycle of innovation and improvement.

The AI catalyst: Fuelling unprecedented IoT demand

The symbiotic relationship between IoT and AI is arguably the most powerful force shaping the current technological landscape. While IoT provides the raw data from countless sensors and devices, AI offers the analytical power to make sense of it all.

The combination unlocks new capabilities and drives demand at an astonishing rate.

The survey data is unequivocal on the point, with 84% of enterprises considering AI a key technology for IoT and 70% stating it has actively accelerated their IoT deployments.

The potential becomes even clearer when combined with visual data; 82% of respondents report that combining AI with video and camera data can deliver invaluable insights for real-time decision-making.

The fusion is transforming everything from quality control on manufacturing lines to customer behaviour analysis in retail.

Strong business cases and a clear vision for ROI back the technological momentum, the survey finds: “Efficiency and productivity gains demonstrate return on investment, while excitement for AI and AI video, 5G and 5G RedCap, network slicing, private wireless, eSIM and more fuels forward optimism.

"The AI factor: Survey respondents across industries say AI is significantly accelerating IoT demand, especially as IoT sensors fuel AI-video capabilities, but some cite cybersecurity as a challenge.”

It highlights both the immense opportunity and the critical need for robust security, with 43% of businesses naming cybersecurity as their most significant hurdle in deployment.

The network foundation: Cornerstones of transformation

The successful deployment of sophisticated IoT ecosystems depends entirely on the quality of the underlying network infrastructure.

As deployments grow in scale – with the number of organisations using 10,000+ devices expected to more than triple next year – the demand for reliable, high-performance connectivity has never been greater.

The survey illuminates the critical technologies that businesses are relying on to build their connected future.

“The technology driving enterprise transformation: 5G, private networks and eSIM are cited as cornerstones of enterprise IoT infrastructure.

"RedCap, slicing and satellite are priorities for many. Respondents indicated that while measurable ROI is within grasp and emerging technology is fueling further optimism.

"There is a need for strong network foundations and well-managed IT integration to deploy IoT at scale. Integrating novel technologies with legacy systems, updating network foundations and securing as well as operationalising the full ecosystem at scale often benefits from partnership and outside expertise.”

The sentiment is reflected in the adoption statistics. A remarkable 81% of organisations currently deploying IoT see value in 5G and 52% intend to use private wireless networks for their projects within the next two years – a 24% increase over current usage.

Furthermore, emerging network capabilities are high on the agenda; 78% see network slicing as essential for customising IoT performance and 74% plan to adopt both 5G RedCap and integrate satellites into their roadmaps.

The surge in eSIM adoption, with a 240% year-over-year growth in monthly average connectivity, further signals a shift towards more flexible and scalable device management.

Expert perspective: IoT as a data powerhouse

To fully grasp the transformative impact of these trends, it is essential to understand the fundamental value proposition of IoT. Daniel Lawson, Senior Vice President of Global Solutions and IoT at Verizon Business, offers a clear perspective on its role.

“The Internet of Things is a data powerhouse. A business’s connected machines, IT systems and overall operations produce an enormous amount of data – location, condition, anomaly, threat, operational progress and continuity and so on," he says.

"IoT is how that data gets collected and parsed to provide businesses with insights about how things are going and how they can be improved,” said Daniel. “This survey tells us that IoT is highly valuable and scalable when implemented correctly, benefits from a full connected ecosystem and is about to get a lot more interesting and dynamic with AI and other emerging technologies.”

A sector-specific revolution

The benefits of IoT are creating tangible value across a wide range of industries, each with its own unique applications and drivers.

• In manufacturing & warehousing, the primary motivation is clear, with 59% of respondents citing cost savings as the key driver for their IoT deployments.
• The retail sector is harnessing IoT to enhance the customer journey, with 83% stating that a personalised customer experience is their leading application.
• For logistics & supply chain, visibility is paramount. A majority (58%) are already deploying real-time shipment tracking, with many planning to leverage IoT for warehouse automation and predictive maintenance.
• The automotive industry is embracing next-generation connectivity, with an overwhelming 94% of original equipment manufacturers agreeing that 5G delivers the speed and bandwidth they require.
• In healthcare, remote care is a leading use case, with 56% of respondents deploying remote patient monitoring solutions.
• Energy & utilities are leveraging IoT for smarter infrastructure, with smart meters (60%) and smart grids (48%) being the most common applications today.

The Verizon Business survey confirms that the era of IoT has truly arrived. Businesses are moving past pilot projects and now focus on scaling their deployments to drive meaningful operational and financial results.

With 98% of enterprises expecting to see tangible benefits within two years, the business case is no longer in question.

Defining the road ahead will be through the continued fusion of IoT with AI, supported by increasingly sophisticated network technologies such as 5G, private networks and network slicing.

As these ecosystems mature, the opportunities for innovation are boundless. For the telecommunications industry, the demand for robust, secure and intelligent connectivity is set to accelerate, placing network providers at the very centre of the global enterprise transformation.