Telecom operators worldwide are facing growing risks linked to cybersecurity, responsible AI practices, and legacy IT systems, according to a new report by EY. The study highlights that many telecom IT functions are struggling to keep pace with an increasingly complex cyberthreat landscape, citing inadequate budgets, organizational challenges, and limited cybersecurity input into executive decision-making as key weaknesses.
The report also flags concerns around responsible AI, with many telecom companies believing their governance and ethical frameworks are not sufficiently mature. Joongshik Wang, EY’s Telecommunications Leader for ASEAN, stressed that responsible AI is as much about trust as compliance, particularly as operators embed AI into network optimization, digital services, and customer engagement.
Challenges in scaling new technologies, especially AI, ranked as the second-largest risk. Resource constraints and weak governance frameworks were identified as the top barriers, followed by regulatory complexity and difficulties in prioritizing use cases. These pressures have led to diverging strategies, with some telecom firms accelerating AI investments while others scale back.
Legacy IT and network decommissioning remain a major concern, as operators transition away from older mobile and fixed-line technologies. EY warned that poorly managed switch-offs could jeopardize network reliability and customer experience if risks are not carefully mitigated.
Talent shortages ranked third among the top risks, driven by the need for new skills in automation, platform development, and multi-vendor technology integration. The report also cited additional risks including weak network value propositions, geopolitical uncertainty, limited adoption of new business models, and inadequate sustainability management.
EY concluded that telecom operators must modernize infrastructure, strengthen cybersecurity and data governance, invest in responsible AI, and remain closely aligned with evolving customer expectations to stay competitive in an increasingly complex global environment.
