**The UK Must Build Smarter Networks to Lead in AI**

As the world becomes increasingly reliant on artificial intelligence (AI), one thing is clear: those who invest in the infrastructure that enables AI will reap the rewards of a transformed economy. According to Microsoft's data, AI is set to boost the UK's GDP by an estimated £550 billion by 2035, creating new job opportunities and driving productivity. But with this growth comes a challenge: the UK's IT infrastructure must be upgraded to meet the demands of the AI revolution.

**A Widening Gap in Computing Power**

Currently, the UK controls just 3% of global computing power required to support an AI-led economy. In contrast, the United States owns 75% of the world's AI supercomputers. Without addressing this imbalance, the UK risks falling behind in the AI race. Government initiatives, such as the AI Opportunities Action Plan, have already started to address issues like expanding data center capacity. But one critical area that often remains overlooked is the network infrastructure underpinning all of AI's incredible potential.

**Legacy Networks: A Barrier to Progress**

The demands that emerging technologies like GenAI place on network infrastructure are huge. Large language models (LLMs) and AI-powered chatbots demand rapid data processing, secure connectivity, and ultra-low latency. Legacy networks lack the ability to manage these demands efficiently and dynamically. Unlike AI-ready networks, which can adapt in real time, legacy systems are static and rigid, resulting in inefficiencies that limit productivity and growth gains.

Our latest data shows that legacy networks can introduce operational inefficiencies of about 20%-25%. Slow systems can frustrate customers, discourage innovation, and leave businesses unable to scale operations effectively. Security is another major concern: legacy networks weren't designed to handle today's cyber threats, which are often AI-powered themselves.

**The Rise of AI-Ready Networks**

The rise of AI calls for dynamic networks that can optimize resource allocation and manage unpredictable traffic by constantly adapting to data demands. Just like cities use dynamic traffic management systems, information networks need to evolve to become multi-lane information highways. These networks should be able to handle vast volumes of data while prioritizing tasks like fraud detection, supply chain optimization, or telemedicine diagnostics – all in real time.

Advanced technologies like Software-Defined Networking (SD-WAN) can optimize traffic for AI workloads and proactively detect performance issues to minimize downtime. Security frameworks such as Secure Access Service Edge (SASE) and Zero Trust allow organizations to proactively identify and respond to threats by detecting unusual network patterns.

**Transforming Industries with AI**

AI is fueling transformative changes across industries like manufacturing, retail, and financial services. For instance, manufacturers are seeing enhanced productivity through smart, AI-connected systems that predict equipment failures and boost efficiency. Retail also stands to benefit immensely from AI: from hyper-personalized shopping experiences to real-time inventory management and automated warehouses.

In financial services, AI is driving real-time fraud detection and digital onboarding. With modern, AI-driven networks, banks can accelerate fraud detection, improve customer experiences, and enable seamless interactions across multiple platforms.

**Building the Foundations for the UK's AI Economy**

To power an AI-driven future, the UK must prioritize network modernization as a national imperative. This is not merely a technical upgrade – it is the foundation for economic resilience, innovation, and global competitiveness. However, modernizing networks does not have to mean starting from scratch: a phased approach can help businesses transition smoothly while minimizing disruption.

**Conclusion**

Network modernization is an investment in growth and innovation. Modern networks are the foundation for supporting new digital services and driving growth. They connect people, businesses, and applications in ways that unlock previously untapped potential. Imagine the benefits of delivering a seamless shopping experience during busy sales periods or live streaming a global sports event with zero buffering.

In today's digital world, high-speed connectivity is not just a necessity but a long-term competitive advantage. By treating information networks as a business enabler, organizations can build scalable, secure, and resilient infrastructure capable of meeting the demands of the AI economy.

**Author:**

Hon Kit Lam is Vice President for Hybrid Connectivity Services at Tata Communications.

**Viewpoints:**

The views expressed in this article are those of the author and not necessarily those of TechRadarPro or Future plc.