REPORT REVEALS THAT COUNTRIES WITH HIGH PROPORTION OF “NETWORK-DEPENDENT” WORKERS WILL BENEFIT MOST FROM AI
- The report commissioned by Liberty Global and conducted by EY showcases the significant impact of AI on job efficiency in the telecommunications sector.
- The US, Germany, the UK, and France are identified as the top beneficiaries of AI in the telecommunications industry, with potential for substantial economic gains.
- AI has the potential to save $33 billion in yearly wages in the telecoms industry, with the US being the primary beneficiary followed by Germany, the UK, and France.
- The study emphasizes the crucial role of the telecoms industry in harnessing the benefits of AI, with 71% of jobs in the sector expected to be augmented by AI.
- AI is projected to enhance efficiency in various telecom roles, such as management, administration, HR, finance, engineering, technology, sales, and customer service.
- The report underscores the importance of telecom companies in leading the responsible and ethical use of AI as new regulations for AI emerge.
- None.
Insights
The findings of the EY report for Liberty Global underscore the profound influence of Artificial Intelligence (AI) on economic productivity and efficiency. AI's integration into the telecoms sector is particularly noteworthy, as it serves as a critical infrastructure for other industries. The projected additional productive capacity equating to $33 billion in yearly wages reflects a significant economic opportunity. The differential impact across countries, with the US, Germany, the UK and France poised to gain the most, suggests that the economic benefits of AI are not uniformly distributed, but rather correlated with the existing occupational mix and the country's readiness to adopt AI technologies. This underscores the importance of digital skills and business agility in maximizing AI's economic potential.
The telecoms industry's role as an enabler of AI-driven efficiency gains is a pivotal finding of the report. Businesses operating within this sector are likely to see transformative changes in network operations, customer service and back-office processes. AI's potential in predicting network traffic and reducing downtime can lead to better service quality and customer satisfaction, which are key competitive factors. For investors and market analysts, understanding the adoption rate and potential barriers to AI within the telecom industry is crucial for assessing the long-term growth and profitability of telecom companies. The report's indication that 71% of telecom jobs could be augmented by AI suggests a substantial market for AI solutions within this sector.
From a technological perspective, the report's emphasis on AI's role in enhancing day-to-day operations within the telecom industry is significant. AI algorithms can streamline complex tasks such as network traffic analysis, which is essential for maintaining the integrity and performance of telecommunications networks. This not only improves operational efficiency but also has the potential to revolutionize research and development (R&D) efforts within the sector. The technological advancements driven by AI can lead to new products and services, which in turn could open up new revenue streams for telecom companies. Understanding the specific applications of AI in telecoms, such as in engineering and customer service roles, can provide insights into future technology trends and investment opportunities.
Study by EY for Liberty Global Shows that the US Stands to be the Biggest Beneficiary of AI, Followed by
The report – called ‘Wired for AI’ – analyses the transformative impact of the new technology and finds that half of all jobs in the US and
It reveals that the telecoms industry will play a critical role in helping seven in every 10 jobs to be augmented by AI. This indicates that these jobs – dubbed “highly network-dependent” – will be key to unlocking the transformative impact of AI on working practices globally and highlights the telecoms industry industry’s central role in harnessing its social and economic benefits.
Goldman Sachs estimates that AI could lead to a
Manuel Kohnstamm, Chief Corporate Affairs Officer at Liberty Global, comments: “This research clearly demonstrates the critical role that the telecom industry is poised to play in the global growth and development of AI, with the potential to boost productive capacity of major economies by huge margins. Not only that, but if harnessed properly, AI also has immense scope to transform the telecom industry itself.”
“While much recent research around AI has focused on the disruptive impact on jobs, this study paints a brighter picture of the opportunities for progressive companies across multiple industries to boost productivity whilst also improving the lives of their employees. As we increasingly harness AI, we must also not lose sight of the broader responsibility of the telecoms industry to ensure the secure, fair, and transparent use of this potentially era-defining technology.”
Dr Harvey Lewis, partner for AI at EY and the report’s author, adds: “Business leaders and policymakers have recognised that AI will transform industries, and it’s no surprise that the telecommunications industry has emerged as a key enabler in this report. Telecommunications companies have been leading the charge on AI for years, demonstrating many useful applications within their networks and in complementing engineering, sales and business roles.
It’s clear that the wider benefits of AI will depend on telecoms offering the necessary connectivity, adaptability, and reliability which will allow all industries to tap into the full potential of AI. As new regulations for AI begin to emerge, this transformative role will also require the industry to lead on the responsible and ethical use of AI by ensuring the standards are set for a balanced, human-centred digital evolution.”
AI’s Impact on Global Telecoms Industry
The study reveals that the total time saved if AI was used across the telecoms industry - referred to as ‘additional productive capacity’ - could equate to
The report differentiates between productivity and efficiency, recognising that while AI may not directly increase output or reduce costs - the traditional measures of productivity – it could enhance efficiency by enabling faster completion of tasks and improved customer satisfaction. However, the report notes that even though time-savings may be possible in most roles, some may struggle more than others to adopt AI. This “adoption potential” means that barriers such as poor digital skills in the workforce, or a lack of business buy-in, can reduce the beneficial impact of the technology.
Telecoms unlocking AI; AI elevating Telecoms
As well as looking at the critical role the telecoms industry will play in making such efficiency and productivity gains a reality, the report also sets out how AI can boost the efficiency of employees working within the industry itself.
It finds that AI has the potential to transform the telecoms industry by enhancing network operations, bolstering security, elevating customer service and streamlining back-office processes. AI algorithms, for example, can be used to analyse network traffic patterns, helping to predict congestion and other issues, so that network managers and operations teams can reduce network downtime.
Building on established approaches for assessing the impact of AI, EY’s analysis also indexes which occupations within the telecoms industry could most benefit from AI, revealing that the biggest gains are seen in day-to-day tasks in management and administrative roles, HR and finance. Engineering and technology roles are also major beneficiaries, with AI helping in day-to-day network operations as well as in R&D efforts and bug-fixing. Other significant gains can also be achieved in sales and customer-service roles, such as call-centre operatives and sales managers. In total, the research suggests that
Link to the Full Report: https://www.libertyglobal.com/wp-content/uploads/2024/02/Wired-for-AI-EY-and-Liberty-Global-report.pdf
Notes to editors
The top-10 contributors to the additional productive capacity in the US, EU,
Country |
Total Additional Productive
|
Total value of Additional Productive
|
US |
51,000 |
|
|
13,000 |
|
|
9,800 |
|
|
8,500 |
|
|
6,800 |
|
|
6,000 |
|
|
4,900 |
|
|
3,000 |
|
|
2,100 |
|
|
1,700 |
|
Top-10 countries by total additional productive capacity |
||
| Source: EY and Liberty Global | ||
High-level telecom occupations that could benefit most from AI, in terms of their potential efficiency gain
Rank |
Occupation |
Potential efficiency gain |
1 |
Administrative and Commercial Managers |
|
2 |
Business and Administration Professionals |
|
3 |
Information and Communications Technicians |
|
4 |
Science and Engineering Professionals |
|
5 |
Production and Specialized Services Managers |
|
6 |
General and Keyboard Clerks |
|
7 |
Business and Administration Associate Professionals |
|
8 |
Legal, Social and Cultural Professionals |
|
9 |
Chief Executives, Senior Officials and Legislators |
|
10 |
Information and Communications Technology Professionals |
|
Table 2. Top 10 high-level telecom occupations by potential efficiency gain (using the ISCO 08 2-digit occupational classification) |
||
Source: EY and Liberty Global |
||
ABOUT LIBERTY GLOBAL
Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is a world leader in converged broadband, video and mobile communications services. We deliver next-generation products through advanced fiber and 5G networks, and currently provide over 85 million* connections across
Liberty Global's consolidated businesses generate annual revenue of more than
Liberty Global Ventures, our global investment arm, has a portfolio of more than 75 companies and funds across the content, technology and infrastructure industries, including stakes in companies like ITV, Televisa Univision, Plume, AtlasEdge and the Formula E racing series.
* Represents aggregate consolidated and
** Revenue figures above are provided based on full year 2023 Liberty Global consolidated results and the combined as reported full year 2023 results for the VodafoneZiggo JV and full year 2023 U.S. GAAP results for the VMO2 JV.
Sunrise, Telenet, the VMO2 JV and the VodafoneZiggo JV deliver mobile services as mobile network operators. Virgin Media Ireland delivers mobile services as a mobile virtual network operator through third-party networks. UPC Slovakia delivers mobile services as a reseller of SIM cards.
Liberty Global Ltd. is listed on the Nasdaq Global Select Market under the symbols "LBTYA", "LBTYB" and "LBTYK".
For more information, please visit www.libertyglobal.com or contact:
Investor Relations: |
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|
Michael Bishop +44 20 8483 6246 |
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|
| Matt Beake +44 20 8483 6215 |
About EY
EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.
Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
EY refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a
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1 Generative AI Could Raise Global GDP by |
2 How to harness the power of generative AI for better jobs | World Economic Forum (weforum.org) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240225326308/en/
Investor Relations
Michael Bishop
+44 20 8483 6246
Corporate Communications
Bill Myers +1 303 220 6686
Matt Beake +44 20 8483 6428
Source: Liberty Global Ltd.
FAQ
How will the US, Germany, the UK, and France benefit from AI according to the study commissioned by Liberty Global?
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How can AI enhance efficiency in the telecoms industry?
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