Telcos Bullish on AI Gains but Struggle with Talent and Strategy Gaps — Ernst & Young Global Limited

Event summary

97% of telecom executives expect AI to deliver major productivity gains within five years, but 54% cite budget constraints and 43% point to insufficient skills as barriers.
69% of executives anticipate that three-quarters of their workforce will need to be upskilled or replaced in the next five years due to AI adoption.
50% of telecom leaders now view non-core services like cybersecurity and AI infrastructure as critical growth catalysts, up from 34% in 2024.
66% of executives see satellite operators as a leading source of disruption in the next five years, particularly in underserved markets.

The big picture

The telecom industry is at a crossroads where AI promises efficiency gains but operational and talent gaps threaten realization. As traditional connectivity growth stalls, telcos are pivoting to non-core services, but must navigate an increasingly complex competitive landscape shaped by satellite operators and hyperscalers. The winners will be those that successfully integrate AI into their core business processes while reengineering organizational structures.

What we're watching

Execution Risk: Whether telcos can align AI investments with strategic clarity and operating model transformation to capture full value.
Talent War: How telecoms will compete for talent against more attractive industries as AI reshapes workforce needs.
Ecosystem Shifts: The pace at which hyperscalers and satellite operators will force telcos to redefine their competitive positioning.