UK could fall behind in the AI race without faster investment in telecoms infrastructure, business leaders warn

 The UK could fall behind other countries in the global AI race if it fails to accelerate improvements to its telecommunications infrastructure, senior industry executives have warned. Much of the competition has focused on developing large datacentres and ensuring they have sufficient water and energy to support the computing power needed to train and operate AI systems. However, as AI becomes increasingly widespread, the country’s broadband and mobile networks will also face growing pressure to handle enormous amounts of AI-generated traffic from both businesses and consumers.

Although the UK has made significant progress in overcoming its previous reputation for having some of Europe’s slowest broadband speeds, with BT’s Openreach and other providers expanding full-fibre coverage, the country’s efforts to modernise its 5G mobile infrastructure have failed to keep up. A recent Which? report using Opensignal data found that the UK has poorer mobile coverage than all 27 EU countries and every other G7 nation. The analysis placed the UK 57th worldwide for overall network performance, 70th for download speeds, and 55th for reliable connectivity needed for services such as video calls, streaming and online gaming. Andrea Donà, networks director at VodafoneThree, warned that existing network weaknesses could become even more problematic as AI use expands. He argued that the UK needs major reforms to improve the quality and reliability of its mobile infrastructure.

Donà warned that the rapid growth of AI could put significant pressure on mobile networks, comparing the potential problem to losing a signal at major events such as concerts or sporting competitions, except that the strain could become a permanent feature as AI increases demand for network capacity. Another senior telecoms executive said the connection between AI and telecommunications is still in its early stages but could soon become a major issue for the UK’s economic competitiveness, particularly as AI becomes embedded in everyday devices over the next few years. Although major mobile operators are investing billions in standalone 5G technology, including VodafoneThree’s £11bn network upgrade programme, companies say progress is being slowed by planning regulations and administrative delays. Donà explained that most of the required improvements could be made to existing infrastructure rather than through building new sites, but many upgrades still require planning approval, creating lengthy bureaucratic obstacles. He argued that reforming planning rules could provide a low-cost way for the government to support economic growth. Mobile operators also point out that, despite their networks being considered critical national infrastructure alongside datacentres and energy and water systems, they do not receive the same government support or financial reliefs offered to those sectors.