Liberty Global and EY report outlines path for telco sector to realise AI-driven sustainability gains

A new report from Liberty Global and EY suggests that the adoption of AI in the telco sector has the potential to drive sustainability gains over the next decade.

The report ‘Smarter networks, greener planet’ takes an in-depth look at how the telecommunications industry can harness artificial intelligence (AI) in the coming years to help meet important sustainability goals in the sector.

Whilst acknowledging the energy intensity of AI – through practices such as the widespread integration of GenAI features into mobile applications – the report also highlights the technology’s potential for driving operational efficiencies within the telco sector. These include applications such as optimising energy use in mobile and fixed networks and using AI-enhanced video technology to improve efficiency in network builds.

The scale of the challenge created by AI-driven applications is illustrated by research cited in the report that shows that in just two years’ time the AI sector could consume between 85 and 134 terawatt hours (TWh) of electricity annually – approximately 0.5% of total global consumption and roughly equivalent to the current electricity usage of the Netherlands.

Sustainability gains through AI would use the sector’s long-standing reputation for innovation, illustrated by research in the report which states that telco operators now carry as much as 10 times more data compared with five years ago, whilst maintaining similar levels of energy consumption.

Overall, the report strikes an optimistic tone. Outlining four hypothetical outcomes for AI and sustainability in the next ten years, it predicts that the most likely is a scenario whereby AI helps minimise the extra energy required to support a huge growth in volume of data carried over telecommunications networks, while also yielding a number of other benefits. This would be achieved by the telco industry utilising advanced AI to optimise the allocation of resources, predict maintenance needs in advance and manage network traffic in real-time.

In this scenario – labelled ‘Growth’ in the report – telecommunications networks would handle 50 times more data traffic than now, while increasing energy consumption by only 10%. This would see the elimination of Scope 1 and 2 emissions, a 70% increase in the lifespan of equipment, and networks becoming net contributors to clean energy production.

The report outlines eight key recommendations that can lead the telecommunications sector to reach such a desirable outcome:

• Conduct comprehensive assessments of AI’s sustainability impact to identify opportunities for reducing energy consumption and waste.
• Prioritise AI-driven network optimisation to enhance efficiency across mobile and fixed-line networks.
• Accelerate the transition to AI-managed renewable energy sources by optimising integration of diverse energy sources, managing storage, and predicting future needs.
• Implement AI-enhanced circular economy practices to extend equipment lifespans and improve recycling and reduce waste.
• Develop comprehensive AI governance frameworks that integrate sustainability considerations.
• Foster an organisational culture that values both technological innovation and sustainability through cross-functional collaboration.
• Invest in workforce development – equipping teams with necessary skills in AI, data analytics, and environmental management.
• Lead efforts to develop industry-wide standards for sustainable AI, establishing common metrics for measuring environmental impact.

Mike Fries, the chief executive officer of 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 optimisation of energy use in our networks and making our network builds more efficient.”

Harvey Lewis, a partner for AI at EY and the author of the report, said: “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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