A recent report by Liberty Global and EY, titled “Smarter Networks, Greener Planet”, sheds light on the transformative potential of artificial intelligence (AI) in the telecommunications (telco) sector. The report explores how AI can drive significant sustainability gains over the next decade while addressing the growing energy demands of AI-driven technologies.
AI and the Sustainability Opportunity in Telecom
The telco industry, renowned for its innovation, is positioned to leverage AI for operational efficiencies and sustainability. The report emphasizes AI’s dual role in the sector:
- Challenges: The energy-intensive nature of AI technologies, such as Generative AI (GenAI) integration into mobile applications, poses sustainability concerns. Research cited in the report estimates that by 2027, AI could consume between 85 and 134 terawatt hours (TWh) of electricity annually—roughly 0.5% of global consumption, equivalent to the energy usage of the Netherlands.
- Opportunities: AI applications in telco operations can significantly reduce energy consumption. Examples include:
- Optimizing Energy Use: AI can enhance efficiency in mobile and fixed networks, reducing wastage.
- Improving Network Builds: AI-enhanced video technologies streamline the design and construction of networks.
Despite a tenfold increase in data carried by telco operators over the past five years, energy consumption has remained stable, showcasing the industry’s ability to innovate sustainably.
AI’s Role in Shaping a Sustainable Future
The report outlines a scenario termed “Growth,” which presents a promising vision for the next decade:
- Data Traffic Growth: Telco networks could handle 50 times more data by 2035 while increasing energy consumption by only 10%.
- Emission Reductions: Scope 1 and 2 emissions could be eliminated.
- Circular Economy: AI would extend equipment lifespan by 70%, reduce waste, and contribute to clean energy production.
This optimistic projection hinges on the telco industry’s ability to adopt advanced AI technologies for:
- Resource Allocation: Optimizing energy and infrastructure usage.
- Predictive Maintenance: Identifying and addressing network issues proactively.
- Real-Time Traffic Management: Balancing data loads to prevent energy spikes.
Eight Key Recommendations for a Sustainable Telco Future
To achieve this desirable outcome, the report highlights eight strategic actions for the telco industry:
- Comprehensive AI Assessments: Evaluate AI’s sustainability impact to identify opportunities for reducing energy consumption and waste.
- AI-Driven Network Optimization: Enhance efficiency in mobile and fixed-line networks.
- Transition to Renewable Energy: Use AI to integrate diverse energy sources, optimize storage, and predict future energy needs.
- Circular Economy Practices: Extend equipment lifespans and improve recycling through AI-enhanced processes.
- AI Governance Frameworks: Establish sustainability-focused guidelines for AI adoption.
- Cross-Functional Collaboration: Foster a culture that balances innovation with environmental responsibility.
- Workforce Development: Train employees in AI, data analytics, and environmental management.
- Industry-Wide Standards: Develop shared metrics to measure and improve AI’s environmental impact.
Industry Leaders on AI and Sustainability
Mike Fries, CEO of Liberty Global, emphasized the company’s commitment to reducing emissions while meeting rising data demands. He stated:
“As data traffic continues to grow exponentially, we are committed to playing our part in reducing emissions throughout our networks and operations. We’re excited about the potential of AI to help us do this—and we’re already seeing the benefits in areas such as the optimization of energy use in our networks and making our network builds more efficient.”
Dr. Harvey Lewis, EY partner for AI and author of the report, highlighted the importance of collaboration and strategic AI adoption:
“While the scenarios we present are speculative, they highlight the strategic potential of AI in the telco sector. Success will depend on network collaboration across Europe, investment in skills and infrastructure, and a holistic approach to AI adoption that balances immediate efficiency gains with long-term sustainability impacts.”
AI’s Dual Challenge: Energy Demand vs. Sustainability Gains
The report acknowledges the tension between AI’s energy demands and its potential for driving sustainability. For example:
- AI could be a net consumer of energy, contributing to higher carbon emissions.
- Conversely, it offers tools to minimize energy use across telco operations, from predictive analytics to optimizing energy efficiency.
By adopting the report’s recommendations, the telco sector can address this dual challenge, ensuring that AI becomes a driver of sustainability rather than a burden.
Conclusion: AI as a Catalyst for a Greener Telco Sector
The Liberty Global and EY report underscores the immense potential of AI to transform the telco industry into a model for sustainability. By leveraging AI to reduce energy consumption, extend equipment lifespan, and optimize resources, the industry can support the growing demand for data while minimizing its environmental footprint.
As telco companies embrace these opportunities, they not only contribute to a greener planet but also set a benchmark for other industries to follow. AI’s role in shaping a sustainable telco future is clear—what remains is the commitment to collaboration, innovation, and action.
