AI-Powered Networks Can Enable Europe's Digital Ambitions

The European Union (EU) is at a pivotal moment in its digital journey. With several legislative proposals from the European Commission—namely the Digital Networks Act, the AI and Cloud Development Act, and the revision of the 2030 Digital Decade targets—the bloc is set to shape its AI and connectivity landscape for years to come.

AI’s role in communications networks is central to this shift. To explore its impact, Cisco supported Analysys Mason to deliver a new report titled, “AI for Connectivity: How Policy Makers Can Help Digitalization.” Through a comprehensive overview of AI’s transformative impact on communication networks, it sets out concrete recommendations for policymakers, regulators and businesses to consider as governments work to achieve their digitalisation objectives.

Opportunities to Transform Networks Through AI

In today’s digital era, there is a growing demand for high-performance and power-efficient networking. Fortunately, AI is driving rapid change in how networks are built, managed and optimised. AI is not only pivotal in enhancing network security, resilience, maintenance, and energy efficiency but also in boosting the performance of wireless networks.

By centralising network management, AI is also enhancing the ability to monitor and detect anomalies and security issues as well as facilitate improved reporting, maintenance, and overall efficiency gains. AI’s integration across various network components allows for more accurate and reliable security outcomes as it automates complex workflows and reduces human errors.

Barriers to AI Adoption in Networks

Despite these opportunities, the 2024 Cisco AI Readiness Index revealed a concerning gap—only 15% of business leaders around the globe, and just 8% in Europe, say their infrastructure is ready for AI. A recent CEO survey shows leaders citing infrastructure limitations, security concerns, and skills shortages as barriers to AI adoption.

This data reveals a deep divide between what is possible and what is holding people back — and Cisco is working to bridge that gap, Cisco is not only providing the infrastructure and cybersecurity services to connect and protect in the AI era, but also addressing the skills shortage through the Cisco Networking Academy—one of the world’s longest-running IT skills-to-jobs programs.

According to the 2024 Cisco AI Readiness Index, only 16% of business leaders globally believe they are ready from a talent perspective for the AI revolution. This number falls to just 10% in Europe. At the European Commission’s recent Employment and Social Rights Forum, Cisco CEO Chuck Robbins announced a new plan to equip 1.5 million more people in the EU with basic digital skills by 2030 and to train 5,000 instructors on new competencies professionals need to succeed in AI, cybersecurity, data science, and the digital transformation of industry. This is in addition to the Cisco Networking Academy’s ongoing work around the world to close the skills gap.

Recommendations for EU regulators

To realize the full potential of advanced AI technologies, the Analysys Mason report emphasizes the need for governments to facilitate AI uptake as well as adopt innovation-friendly policies that promote R&D investment, enable public-private partnerships on skills development, and clarify compliance guidance. Finally, on the international stage, governments and businesses should work toward harmonised international principles and interoperable legal requirements.

“Analysys Mason’s research demonstrates the need for an ecosystem where a range of technologies work together to meet diverse connectivity needs. AI-powered networks will help to realize this by making communication networks more resilient, efficient, and sustainable. Policymakers have an important role to play in overcoming barriers and supporting broader digitalization goals.”
– Matteo Quattrocchi, Head of EU AI Policy, Cisco

“AI has the potential to significantly improve the operations of communications networks around the world, which will underpin the effective ongoing digitalisation of societies and all the benefits that brings. Governments and regulators have an opportunity to focus their policies on the intersection of AI and communications, to lead the way in the safe and secure adoption of this transformative technology.”
– Andrew Daly, Principal, Analysys Mason

The full Analysys Mason report can be viewed here.

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