Europe’s AI ambitions require more investment in advanced and trusted connectivity

It seems impossible to have a conversation today without artificial intelligence (AI) playing a role, demonstrating the massive power of the technology. AI has the potential to impact every part of business and society, and European policymakers are on board.

In February 2025, Ursula von der Leyen, the president of the European Commission, said: “We want Europe to be one of the leading AI continents … AI can help us boost our competitiveness, protect our security, shore up public health, and make access to knowledge and information more democratic.”

Research from Nokia suggests that businesses share this enthusiasm and ambition.

Eighty-four percent of more than 1,000 respondents said AI features in the growth strategy of their organization, while 62 percent are directing at least 20 percent of ICT capex budgets toward the technology.

However, the equation is not yet balanced.

Three-quarters state that current telecom infrastructure limits the ability to deliver on those ambitions, while 45 percent suggest these limitations would delay, constrain or entirely limit investments.

There is clearly a disconnect between the ambition and the ability to deliver. At present, Europe lags the United States and parts of Asia in areas such as network deployment, related investment levels and scale.

What we must remember primarily is that AI does not happen without advanced, trusted and future-proofed networks. Infrastructure is not a ‘nice to have’, it is a fundamental element. Simply put, today’s networks in Europe require more investments to power the AI dream we all have.

If AI does not reach its full potential, EU competitiveness will suffer, economic growth will have a ceiling, the creation of new jobs will have a limit and consumers will not see the benefits.

When asked about the challenge of meeting AI demands for our research, out of 15 options, the lack of adequate connectivity infrastructure was the fourth most common answer.

Our telecom connectivity regulatory approach must be more closely aligned with the goal of fostering AI. That means progressing toward a genuine telecom single market; adopting a novel approach to competition policy to allow scale, which will lead to more investments; and ensuring connectivity is always secure and trusted.

Supporting more investments in next-generation networks through scale

AI places heavy demands on networks, requiring low latency, high bandwidth and reliability. To deliver this, Europe needs to accelerate investment in 5G Standalone, fiber to enterprises, edge data centres and IP-optical backbone networks optimized for AI.

Revised merger rules facilitating consolidation in the telecom sector is part of the solution. Consolidation allows operators to achieve economies of scale and improve operational efficiency, which encourage investment and catalyze innovation.

As industry voices such as Nokia have emphasized, the networks that power AI must themselves make greater use of automation and AI. Policy support should therefore extend to both network innovation and deployment.

Trust: A precondition for AI adoption

Cyber-attacks and intellectual property (IP) theft are a threat to Europe’s industrial future and security. As such, only trusted technology should be used in core functions, systems and sectors (such as energy, transport and defense). In this context, the underlying connectivity should always be secure and trusted. The 5G Security Toolbox, restricting untrusted technology, should therefore be extended to all telecom technologies (including fiber, optics and IP) and made compulsory in all EU member states. The recent Cybersecurity Act from the European Commission proposes exactly that. We therefore call the co-legislators for a swift adoption. European governments must make protecting their industries and citizens a high priority.

Completing the digital single market

Although the single market is one of Europe’s defining projects, the reality in telecoms is still fragmented. As an example, different spectrum policies create barriers across borders and can limit network roll outs. The recent Digital Networks act proposal from the European Commission proposes to strengthen spectrum policy through more harmonization and should therefore be supported.

Levers on top of advanced connectivity

To enable the AI ecosystem in Europe, there are several additional enabling levers European policymakers should advance on top of fostering advanced and trusted connectivity:

• The availability of compute infrastructure
  The AI Continent Action Plan, as well as the IPCEI Compute Infrastructure Continuum, and the European High-Performance Computing Joint Undertaking (EuroHPC JU) should facilitate the building of AI data centres in Europe.

• Leadership in edge computing
  Support is required for developing edge solutions and building out edge capacity in Europe. Edge solutions increase processing speeds and are important for enabling AI adoption.
  With the right data center capacity and edge compute capabilities available, European businesses can meet the new requirements of AI use cases.

• Harmonization of rules
  There are currently implications for AI in several policy areas, including the AI Act, General Data Protection Regulation (GDPR), Data Act, cybersecurity laws and sector-specific regulations. This creates confusion, whereas AI requires clarity. Simplification and harmonization of these regulations should be pursued.

• AI Act implementation and simplification
  There are concerns about the implementation of the AI Act. The standards for high-risk AI may not be available before the obligations of the AI Act enter into force, hampering business ambitions due to legal uncertainty. The application date of the AI Act’s provisions on high-risk AI should be postponed by two years to align with the development of standards.
  There needs to be greater clarity on definitions and simplification measures should be further pursued. Policies must be simple enough to follow, otherwise AI adoption may falter.
  Policy needs to act as an enabler, not a barrier to innovation.

• Upskilling and new skills
  AI will require new skills of employees and users, as well as creating entirely new career paths. Europe needs to prepare for this new world.

If Europe can deliver on these priorities, the benefits will be tangible: improved services, stronger industries, increased competitiveness and higher economic growth. AI will deliver to those who best prepare themselves.

We must act now with the urgency and consistency that the moment demands.

Author biography:
Marc Vancoppenolle leads the geopolitical and government relations EU and Europe function at Nokia. He and his team are working with institutions and stakeholders in Europe to create a favorable political and regulatory environment fostering broadband investments and cross sectoral digitalization at large.

Vancoppenolle has over 30 years of experience in the telecommunication industry. He joined Alcatel in 1991, and then Alcatel-Lucent, where he took various international and worldwide technical, commercial, marketing, communication and government affairs leadership roles.

Vancoppenolle is a Belgian and French national. He holds a Master of Science, with a specialization in telecommunication from the University of Leuven complemented with marketing studies from the University of Antwerp. He is a member of the DIGITALEUROPE Executive Board, Associate to Nokia’s CEO at the ERT (European Round Table for Industry), and advisor to FITCE Belgium (Forum for ICT & Media professionals). He has been vice-chair of the BUSINESSEUROPE Digital Economy Taskforce as well as a member of the board of IICB (Innovation & Incubation Center Brussels).

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