New era of connectivity is required to unlock the power of AI

Ericsson has published the findings from its annual ‘State of Enterprise Connectivity in Europe’ report, based on a survey conducted by Censuswide of 2,500 technology decision makers across the UK, France, Germany, The Netherlands and Italy. The report examines how the connectivity landscape has changed over the last 12 months and how enterprises’ attitudes towards cellular connectivity have evolved. According to the respondents surveyed, an overwhelming majority (88 percent) believe outdated connectivity is restricting the potential benefits of technologies like artificial intelligence (AI), indicating that a new era is required.  

According to the survey many enterprises believe that 5G connectivity and next-generation technologies, such as AI, have a symbiotic relationship. For instance, 85 percent of respondents state that AI helps improve network performance by automating analysis and reducing manual workload. Meanwhile, 87 percent believe that 5G is necessary to accelerate R&D initiatives within their organizations, and 54 percent strongly agree that more secure and high-performing networks would help position their nation as a world-class industrial and technology leader. Businesses that want to see a full return on investments in advanced technology must ensure they are upgrading their connectivity infrastructure as well. 

Poor connectivity has real-world implications 

Unfortunately, Europe trails global leaders in the deployment and adoption of transformational 5G due to a regulatory environment that impedes profitable investment in advanced connectivity. 

While in its latest report on OIR implementation, the European Commission made clear that the regulation should not be considered an obstacle to differentiated connectivity, the results of the survey reflect that negative perceptions have to be addressed as 35 percent of enterprises believe that net neutrality rules limit telecom providers’ ability to offer specialized connectivity services. Likewise, 38 percent believe upgrading their network would be too complex, which is hindering the adoption of 5G solutions. 

The result of this poor connectivity is not just holding businesses back; it is hurting their bottom line. Just over a quarter of respondents (28 percent) link unreliable connectivity directly to a loss of earnings, 31 percent believe it has led to an increase in waste, and 46 percent state it leads to higher operational costs. It also affects enterprises’ sustainability initiatives, with 71 percent stating poor connectivity in remote areas restricts their ability to accurately gather emissions data, a crucial task if organizations want to achieve their net zero goals by 2030 and reduce their effect on the environment.  

Connectivity is the new utility in the UK 

The survey showed that UK business leaders are aware of how critical 5G cellular connectivity has become to their long-term success, with 62 percent of executives stating it gives them more control when scaling their connectivity infrastructure up and down as needed and 61 percent stating it gives more control over critical operations when compared to fiber or even 4G networks. As a result, 69 percent state it is the best investment they can make in the next 12 months, ahead of robotics and automation (45 percent) and even AI (42 percent). 

The UK businesses that were surveyed also highlighted the utilities sector as one which could benefit the most from 5G. Due to its low latency and high bandwidth, 5G can support the demands of modern technology and IoT devices, leading to better management of energy infrastructure (86 percent) and water infrastructure (82 percent). Finally, as the NHS continues to battle staff shortages and long wait times, 88 percent believe 5G is important to help the rollout of advanced technology within hospitals, which can help address this crisis.  

Commenting on the findings, Paul McHugh, Head of Sales EMEA at Ericsson Enterprise Wireless Solutions, said, “It is clear from this report 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. I urge companies unsure where they should start their journey to work with channel and connectivity providers to help plug skills gaps and open the door to a new era of connectivity.”