Firms say complex 5G rollout is holding back AI

According to Ericsson, businesses can see the promise of AI and 5G, but getting these technologies running is proving to be quite a headache.

This is due to complex rollouts and a major shortage of skilled people. While leaders know that robust connectivity is the key to staying competitive, problems with complexity and coordination are stopping them from jumping in and putting innovation at risk.

Ericsson’s State of Enterprise Connectivity Europe 2025 report – which talked to over 2,500 tech bosses in the UK, Germany, France, Italy, and the Netherlands – tells a story of how AI and 5G should be working together perfectly but are struggling to get in sync.

88% of businesses agree that “a new era of connectivity is needed if they want to unlock business innovation with AI and IoT.” According to Ericsson, the two are a perfect match: 5G gives AI the super-fast, responsive network it needs to thrive, and AI can help sort out the headaches of managing that network. In fact, 85% of firms believe AI helps improve their network by automating tricky analysis and freeing up their IT teams from manual work.

But even though everyone gets the potential, progress is patchy at best. Paul McHugh, who heads up sales for the region at Ericsson Enterprise Wireless Solutions, points out that while businesses need reliable connections – especially in today’s choppy economic waters – their old systems just can’t keep up with new tech. The report highlights that Europe is falling behind on its 2030 goals for 5G, and isn’t investing nearly as much as other parts of the world.

Ericsson finds this lack of 5G and connectivity investment is causing real, tangible problems while holding back innovations like AI. A big part of the issue is that the rollout of 5G just isn’t being coordinated very well.

67% of businesses feel that the current “complex telecom centric solutions are hindering them from making further progress with 5G.” It’s a problem that keeps coming up. 38% say that upgrading is just too difficult, which stops them from adopting 5G, and 36% admit they simply don’t have people with the right skills to manage it all.

And shaky connectivity is already hitting businesses where it hurts: their bank accounts. Nearly half (46%) of the companies surveyed report facing “higher operational costs” because of it. On top of that, 31% said it led to more waste, and 28% directly linked it to a loss of earnings.

UK firms bet on 5G more than AI

But while parts of Europe are struggling, it looks like the UK is taking a much more ‘can-do’ attitude. British companies seem far more convinced than their neighbours about the vital role 5G will play in keeping the country at the forefront of technology and industry.

69% of UK firms believe that investing in 5G is the “best investment they can make over the next 12 months to maintain the UK’s position as a leading tech powerhouse.” That puts 5G ahead of even AI and automation as a top priority, a key takeaway from Ericsson’s report.

This confidence isn’t just wishful thinking; it’s based on the real-world advantages they see in cellular tech. 

62% of UK businesses think 5G would give them much better control when it comes to scaling up or down, and 61% feel it gives them more control over their critical operations. Almost all (92%) UK leaders believe a new connectivity era will “unlock business innovation,” which is a more optimistic view than the European average.

This push for 5G in the UK isn’t just about business; it’s also about tackling big challenges in public services and meeting climate goals.

With more pressure than ever to cut carbon emissions, companies are looking to technology for help. Ericsson finds that 46% have already brought in AI or machine learning to cut down on waste, a step that’s only possible with the kind of solid connection 5G can provide.

Concerns in mainland Europe

Over in mainland Europe, the story is a bit more complicated. In Germany, for instance, there’s a real worry their digital progress has stalled.

The report found that 46% of German businesses think the country is “lagging behind other leading nations” on digital infrastructure. This has made money worries worse, with 45% of German firms saying unreliable connections led to “higher operational costs” this year, a sharp rise from 35% in 2024.

Ericsson found that, while 82% of German companies agree “5G is critical to optimising the use of AI in the workplace,” many are stuck, held back by the high cost and a shortage of skilled staff.

France, on the other hand, has great 5G coverage on paper, but its businesses are still feeling the pain of unreliable connections, with 39% reporting higher costs. For the French companies that have made the leap to 5G, one of the biggest wins has been security. 45% said that “improved control of security measures” was a major reason they chose 5G over a traditional fibre network.

When you look at the big picture, it’s clear that Europe needs to get its act together with a proper, unified plan. So, what’s the solution? The report suggests that businesses need to start working together more. If leaders can get the connectivity foundation sorted now, they’ll be in the driver’s seat, ready to build the kind of agile, resilient, and adaptable organisations the modern world demands.

(Image by Rupert Kittinger-Sereinig)

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Tags: 5G, artificial intelligence, automation, connectivity, Enterprise, ericsson, europe, mobile, networks, report, research, study, telecoms, uk