AI offers sustainability breakthroughs for the telco sector: report

A new report by Liberty Global and EY, titled "Smarter Networks, Greener Planet," highlights the transformative potential of artificial intelligence (AI) in advancing sustainability within the telecommunications (telco) sector over the next decade.

The report examines how strategic AI adoption can drive operational efficiencies, including energy optimisation in mobile and fixed networks and improved efficiency in network construction. Despite the energy-intensive nature of AI, such as generative AI features in mobile applications, the technology could mitigate its environmental impact by enabling smarter resource allocation, predictive maintenance, and real-time network traffic management.

One key insight is the projected rise in AI-related energy consumption, estimated to reach 85–134 terawatt hours (TWh) annually within two years, equalling the electricity usage of the Netherlands. However, the report also reveals that telco operators now transmit 10 times more data than five years ago without significantly increasing energy consumption, demonstrating the sector’s innovative capacity.

In the "Growth" scenario outlined in the report, AI could help telco networks manage 50 times more data traffic by 2034 while increasing energy consumption by only 10%. This could result in eliminating Scope 1 and 2 emissions, extending equipment lifespans by 70%, and making networks net contributors to clean energy production.

To achieve these outcomes, the report proposes eight recommendations for the telco sector:

• Assess AI’s sustainability impact to reduce energy use and waste.
• Optimise networks with AI to enhance efficiency.
• Transition to AI-managed renewable energy sources.
• Implement circular economy practices to extend equipment lifespans and boost recycling.
• Develop governance frameworks that integrate sustainability.
• Foster a culture of innovation and sustainability through collaboration.
• Invest in workforce training on AI, analytics, and environmental management.
• Establish industry-wide standards and metrics for sustainable AI practices.

Overall, the report strikes an optimistic note, presenting AI as a pivotal tool for enabling sustainable growth in the telco industry while addressing critical environmental challenges.

Mike Fries, Chief Executive Officer, Liberty Global, said: "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, partner for AI at EY and the author of the report, adds: "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 to create more competition, and a holistic approach to AI adoption that balances immediate efficiency gains with long-term sustainability impacts."

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