Study by EY for Liberty Global Shows that the US Stands to be
the Biggest Beneficiary of AI, Followed by Germany, the UK and
France
Countries with a high proportion of workers who rely on the
telecommunications network will benefit more from AI than others,
according to a new report commissioned by Liberty Global. According
to the research by Ernst & Young LLP (EY), the US stands to be
the biggest beneficiary, and that the UK and EU were set to be the
most positively-impacted by AI, and that the telecoms industry is
key to unlocking efficiency gains of AI at scale.
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 Europe could leverage AI and generative AI to improve
efficiency in at least 50% of work tasks.
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 $7 trillion
boost in annual global economic gains - equivalent to an additional
120 million workers1. Contrary to some recent studies on the impact
of AI – such as the World Economic Forum’s prediction that 44% of
roles could be disrupted by the technology 2 - the report suggests
that efficiency can be dramatically improved by augmenting roles
with AI.
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 $33 billion in yearly wages,
with the US the biggest beneficiary, followed by Germany, the UK
and France. Variations from country to country arise from
differences in the occupational mix between economies, suggesting
that some countries could naturally benefit more from AI than
others. The report also finds that larger economies - such as the
US, UK and Germany - can adopt and benefit from AI at a faster pace
because of a higher proportion of roles in network-dependent
occupations such as the service sector.
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 71% of jobs in the
telecom industry could benefit from being augmented by AI.
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, UK, and Switzerland
Country
Total Additional Productive Capacity
(Thousands of jobs)
Total value of Additional Productive
Capacity (Yearly wages, billions)
US
51,000
$3,520
Germany
13,000
$920
UK
9,800
$400
France
8,500
$540
Italy
6,800
$340
Spain
6,000
$250
Poland
4,900
$90
Netherlands
3,000
$250
Romania
2,100
$30
Sweden
1,700
$110
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
45.3%
2
Business and Administration
Professionals
45.2%
3
Information and Communications
Technicians
41.9%
4
Science and Engineering Professionals
40.7%
5
Production and Specialized Services
Managers
40.6%
6
General and Keyboard Clerks
40.2%
7
Business and Administration Associate
Professionals
40.0%
8
Legal, Social and Cultural
Professionals
39.7%
9
Chief Executives, Senior Officials and
Legislators
37.9%
10
Information and Communications Technology
Professionals
36.0%
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 Europe. Our businesses operate under some of the
best-known consumer brands, including Sunrise in Switzerland,
Telenet in Belgium, Virgin Media in Ireland, UPC in Slovakia,
Virgin Media-O2 in the U.K. and VodafoneZiggo in The Netherlands.
Through our substantial scale and commitment to innovation, we are
building Tomorrow’s Connections Today, investing in the
infrastructure and platforms that empower our customers to make the
most of the digital revolution, while deploying the advanced
technologies that nations and economies need to thrive.
Liberty Global's consolidated businesses generate annual revenue
of more than $7 billion, while the VMO2 JV and the VodafoneZiggo JV
generate combined annual revenue of more than $18 billion.**
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 50% owned
non-consolidated fixed and mobile subscribers. Includes wholesale
mobile connections of the VMO2 JV and B2B fixed subscribers of the
VodafoneZiggo JV.
** 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:
Corporate Communications:
Michael Bishop +44 20 8483 6246
Bill Myers +1 303 220 6686
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,
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Working across assurance, consulting, law, strategy, tax and
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the complex issues facing our world today.
EY refers to the global organisation, and may refer to one or
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For more information about our organization, please visit
ey.com.
__________________________
1 Generative AI Could Raise Global GDP by
7% (goldmansachs.com),
2 How to harness the power of generative
AI for better jobs | World Economic Forum (weforum.org)
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Investor Relations Michael Bishop +44 20 8483 6246
Corporate Communications Bill Myers +1 303 220 6686 Matt
Beake +44 20 8483 6428
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