A new report from Ericsson shows that as enterprises embrace 5G and AI to future-proof operations, spectrum and complexity remain key hurdles
Ericsson’s 2025 State of Enterprise Connectivity report reveals that as enterprises navigate economic uncertainty, labor shortages, and rapid tech adoption, reliable connectivity is foundational to success. Specifically, the report offers a deep dive into how U.S. businesses are leaning on 5G, AI, and IoT to future-proof operations, boost efficiency, and stay competitive.
“The data not only highlights the benefits of AI to the modern business environment, it also reveals the mutually beneficial relationship between 5G and AI,” stated Ericsson. “As 5G provides the constant high-speed connectivity necessary for AI-based data sharing, AI technology has the ability to automatically optimize 5G wireless wide area networks (5G WWAN) and 5G private cellular networks (PCNs).”
Based on a nationwide survey of tech decision-makers, the findings reveal both the momentum behind next-gen networks and the roadblocks that could slow progress. Here are a few key takeaways:
1. 5G Is essential to business innovation and AI adoption
- 93% of enterprises see 5G as crucial to U.S. tech leadership.
- 88% say 5G is “critical to optimizing the use of AI in the workplace.”
Respondents view AI and 5G as mutually reinforcing — 5G enables AI workloads, while AI enhances 5G performance and security. “These findings suggest a mutually beneficial relationship between 5G and AI as both technologies become more widespread. 5G enables the high-speed data transfers AI systems rely on, while AI enhances 5G network performance and security,” the report stated.AI is also addressing workforce challenges: 89% of companies say AI is helping upskill network management staff. “This workforce enablement complements the role of 5G, which facilitates the data movement required for AI tools to operate efficiently,” said the vendor. “Together, they form a foundation for enterprises to scale innovation while optimizing both human and technological resources.”
2. Spectrum availability is a national competitiveness issue
- 80% of business leaders say delayed spectrum auctions are hindering 5G deployment and innovation.
Due to these concerns, Ericsson found strong support for restoring the FCC’s authority to auction spectrum in order to maintain global competitiveness. “Prior to 2023, the FCC was able to hold auctions for licensed spectrum, removing allocation decisions from the government and instead selling the spectrum to the highest bidder,” explained Ericsson, adding that this created a lane for 5G operators to buy licensed spectrum.
That authority lapsed in March 2023, leading to frustration in the industry. “…the government is not sufficiently disseminating spectrum for 5G to meet the current allocation needs of today’s businesses,” the report continued. “This would allow 5G operators to grab the spectrum and make it available to those most prepared to push innovation throughout the country. The alternative, per legislators, is a nation that could lag behind the rest of the world in 5G deployments.”
3. Private 5G and managed WWAN are key to overcoming deployment barriers
- Top hurdles include: deployment costs (52%); hardware upgrade complexity (46%); and existing infrastructure issues (41%).
Managed 5G WWAN and private networks are seen as scalable, secure and cost-effective alternatives — particularly in logistics, healthcare and manufacturing. To simplify adoption, vendors are working to replicate the ease of Wi-Fi experiences.
From the report: “Today, warehouses, hospitals and manufacturing facilities are increasingly adopting private 5G to provide dedicated bandwidth for their most critical devices. These solutions offer built-in security and consistent uptime, allowing network administrators to manage operations with greater confidence and less complexity.”
4. Unreliable connectivity carries major business risks
- 95% of executives say unreliable networks lead to increased costs or inefficiencies.
- 30% cite reputational damage.
- 26% point to revenue loss.
According to Ericsson, WWAN and private 5G solutions can mitigate these risks by boosting uptime and network resilience. “Private 5G allows large-scale enterprises to leverage dedicated bandwidth for their most vital business functions. Moreover, it allows businesses to maximize their investments in Wi-Fi and WWAN solutions, creating a powerful connectivity ecosystem that can meet all of an enterprise’s connectivity needs,” stated the vendor.
Looking ahead: A future built on 5G and AI
As AI becomes more advanced, it will demand more from enterprise connectivity. Ericsson expects both AI and 5G to evolve in tandem. “As AI technology becomes more innovative, 5G technology is set to do the same,” said the company. “In the meantime, businesses still have the opportunity to implement the connectivity solutions that will prepare them for what’s next.”
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