Research commissioned by Nokia found that rising demand driven by the AI supercycle is putting pressure on network infrastructure in the US and Europe, warning that existing connectivity will struggle to support the next phase of AI.

The study, which surveyed around 2,000 businesses and decision-makers across the US and Europe, found networks must evolve rapidly to keep pace with increasingly complex AI workloads. In the US, 88 per cent of respondents said infrastructure limitations could restrict AI’s scale, compared with 78 per cent in Europe.

According to Nokia, AI is “redefining network requirements”, with traffic patterns shifting away from traditional downlink-heavy consumer use towards uplink-intensive data flows. Applications such as autonomous vehicles, smart factories and remote healthcare generate large volumes of data at the edge that must be sent upstream for processing, placing pressure on networks originally designed for browsing and video streaming.

In Europe, 86 per cent of enterprises believe today’s networks are not yet ready for mass AI adoption. While two-thirds of enterprises surveyed already have AI in live use, more than half are already experiencing downtime, latency and throughput constraints. Security concerns are also rising as more than 80 per cent of businesses across sectors believe AI is introducing risks, with cybersecurity emerging as the top AI use case.

Competitiveness is another pressure point. Nearly 29 per cent of European enterprise leaders warned infrastructure constraints could force them to move AI workloads abroad, potentially undermining the continent’s digital sovereignty.

Reshaped industries
To address these concerns, respondents called for regulatory simplification, spectrum availability and greater investment in energy-efficient, AI-ready networks across the continent.

In the US, respondents highlighted the need to optimise bi-directional data flows, expand fibre capacity and deploy low-latency edge infrastructure. Despite leading global AI adoption, most US respondents remain concerned infrastructure upgrades may lag behind.

“The first wave of the AI supercycle has already reshaped industries and accelerated innovation,” noted Pallavi Mahajan, chief technology and AI officer at Nokia. According to her, the research shows “a clear understanding across the ecosystem that future waves will demand more advanced, AI-native networks”, with “connectivity, capacity, and low-latency performance” becoming increasingly critical.

Looking ahead, the Finnish vendor called for closer collaboration and more predictable regulation to enable timely network investment as AI demand accelerates.