AI Spending for Cellular Network Orchestration to Reach $20 Bn by 2028

A recent report by Juniper Research predicts a substantial surge in global network operators' spending on AI for network orchestration, estimating a jump from the current projection of $6 billion this year to an anticipated $20 billion by 2028, signifying a 240% increase. 

The report asserts that the escalating usage of cellular networks by enterprises, particularly for applications such as smart manufacturing and autonomous vehicles, will necessitate increased investments in AI to automate critical network processes.

AI in improving network

The report emphasizes the critical role AI must play in optimizing performance and ensuring network security as operators expand existing 5G networks and develop forthcoming 6G networks. These functions are anticipated to comprise over 50% of global operator expenditure on AI by 2028. The authors advocate for the swift integration of AI into core networks to enhance efficiency and curtail operational costs, given the diverse requirements of use cases like high throughput, low latency, and extensive geographical coverage.

Report author Frederick Savage said, “As operators compete on the quality of their networks, AI will be essential to maximizing the value of using a cellular network for connectivity. High-spending users will gravitate to those networks that can provide the best service conditions.”

In addition, the report underscores the escalating virtualization of network functions and the growing demand for cellular data, which will compel operators to implement AI to reduce operational expenses. The automation of real-time network analysis and adjustment of network conditions will be pivotal in minimizing costs associated with network management and service provision, according to Juniper's release.