The promise of AI and 5G captivates businesses, yet implementing these technological marvels remains a significant challenge. Ericsson research targeting the UK and mainland Europe reveals that the complexity of rolling out these technologies, coupled with a shortage of skilled personnel, presents a real headache for enterprises. Leaders recognize that robust connectivity is crucial for competitiveness, yet they struggle with coordinating these advancements, threatening future innovations.
In Ericsson’s State of Enterprise Connectivity Europe 2025 report, over 2,500 technology executives across the UK, Germany, France, Italy, and the Netherlands were interviewed. The findings paint a vivid picture of disjointed efforts to merge the capabilities of AI and 5G. Significantly, 88% of surveyed companies agree that enhancing connectivity is indispensable for unlocking innovation with AI and IoT. In this equation, 5G offers the fast, responsive network AI requires, while AI efficiently streamlines network management.
Despite this understanding, progress is uneven. Paul McHugh from Ericsson Enterprise Wireless Solutions emphasizes that firms need reliable connections in today’s volatile economy, but legacy systems struggle with new technology demands. Europe is trailing behind its 2030 5G goals and lacks investment compared to other global regions.
The shortfall in 5G infrastructure investment hampers innovations and capabilities, including AI. Poor coordination of 5G rollout is a recurring issue. A staggering 67% of businesses describe the current telecom solutions as being too complex, hindering 5G adoption. Difficulty in upgrades stops 38% of enterprises from adopting 5G, and 36% cite a lack of skilled personnel.
This connectivity bottleneck directly impacts finances. Nearly half (46%) of surveyed companies report increased operational costs due to unreliable connections. Furthermore, 31% experience more waste and 28% correlate it to revenue losses.
The UK appears more optimistic, seeing 5G as a crucial investment. For 69% of UK firms, investing in 5G over the next 12 months is seen as vital to maintaining the UK’s tech leadership. UK companies perceive immediate tangible benefits from cellular technologies, with 62% agreeing that 5G aids in scalable control and 61% valuing operational flexibility. A striking 92% of UK executives believe in 5G’s potential to unlock business innovation, exceeding the enthusiasm found elsewhere in Europe.
In mainland Europe, the outlook is less rosy. In Germany, 46% of businesses believe the country’s digital infrastructure lags behind leading nations, with connectivity issues further pushing operational costs. Despite recognizing the critical role of 5G in enhancing AI use, German firms face high costs and skill shortages that curb progress.
France boasts extensive 5G coverage, yet many businesses still suffer from connectivity issues, raising costs for 39%. French companies shifting to 5G register improved security control, with 45% highlighting security as a significant improvement over traditional networks.