The rapid integration of artificial intelligence into industrial settings is revealing a critical dependency not on the algorithms themselves, but on the digital infrastructure that supports them. As industries from manufacturing to logistics accelerate their adoption of AI to streamline operations, enhance safety, and manage supply chains, the underlying connectivity framework has become a primary bottleneck and a crucial enabler. The performance of AI applications, particularly those requiring real-time data processing and decision-making, is inextricably linked to the capabilities of the networks that feed them data.
A new report highlights that private wireless networks, especially those using 5G technology, are emerging as the essential foundation for this new wave of industrial digitalization. The 2025 Industrial Digitalisation Report, a collaboration between Nokia and GlobalData, argues that without robust, reliable, and low-latency connectivity, the full potential of industrial AI cannot be realized. This perspective reframes the conversation around AI adoption, shifting focus from a software-centric view to a more holistic, infrastructure-aware approach. The findings indicate that companies leveraging private wireless and on-premises edge computing are not only overcoming connectivity challenges but are also achieving significant returns on investment in remarkably short timeframes.
The Foundational Role of Digital Infrastructure
The core argument presented in the report is that digital infrastructure is to AI what roads are to vehicles; the most advanced car is useless without a surface to drive on. This analogy underscores the necessity of building a proper digital ecosystem before deploying sophisticated AI systems. According to Stephan Litjens, Vice President of Enterprise Campus Edge at Nokia, the enthusiasm for AI’s potential to transform business is justified, but creating the right environment for that innovation is a critical and often overlooked variable. The network that powers an industrial operation is described as the company’s most powerful digital asset, as nothing else can function as intended without it.
This viewpoint is echoed by businesses participating in the study, which consistently identified private wireless as the only solution capable of delivering the comprehensive and dependable connectivity they require. For many industrial applications, standard connectivity solutions like Wi-Fi or public cellular networks fall short. An IT head for a European nuclear power facility noted that for mission-critical operations, reliability of 98% or 99% is simply not good enough; the network must be completely trustworthy. This demand for near-perfect reliability is a driving force behind the adoption of private wireless solutions.
Achieving Rapid Returns on Investment
The move toward private wireless and edge computing is not just a technical upgrade but a strategic financial decision that is paying off quickly. The Nokia and GlobalData report reveals that more than two-thirds of businesses, or 68%, secured a return on investment (ROI) within just six months of deploying these technologies. This rapid ROI is a powerful incentive for companies that may be hesitant to invest in new infrastructure. The financial benefits are often realized through significant operational efficiencies.
For instance, 78% of the report’s participants stated they reduced their operational expenditures by more than 10%. These savings were achieved by implementing technologies like robotics, mechatronics, and automated condition monitoring. These applications depend on the real-time data flows enabled by a deterministic, low-latency communication network. Private LTE and 5G networks provide the necessary conduit for data to travel from operational equipment to AI inference engines located at the on-premises edge, facilitating immediate analysis and action.
The Synergy of Private Wireless and Edge Computing
The benefits of private wireless are significantly amplified when combined with on-premises edge computing. The report found that an overwhelming 94% of businesses that implemented a private wireless network also deployed edge technology alongside it. This convergence creates a powerful, localized system for data processing and AI-driven insights. “An Edge platform powered by Private wireless connectivity is transformative when it comes to AI adoption and scalability, as AI engines are only as good as the unified data they are being fed,” states Litjens.
Private wireless networks excel at supplying the large volumes of high-quality, uninterrupted data streams that AI algorithms require. This steady flow of data from operational technology environments enables highly accurate predictions and the optimal, real-time decisions necessary in mission-critical scenarios. This integrated approach was behind many of the most effective applications reported by the surveyed businesses, forming a technological pairing that underpins the most advanced industrial AI use cases.
Meeting Demands for Low Latency and High Reliability
The primary motivators for adopting private wireless are clear from the research. Three-quarters of organizations implemented these networks to improve the dependability and efficiency of their wireless connectivity. Furthermore, 63% were specifically pursuing the capabilities of real-time intelligence and minimal latency. Industrial AI applications such as automated guided vehicles, robotic arms, and predictive maintenance systems cannot tolerate the delays or interruptions common on public networks. They require deterministic connectivity, where data packets arrive consistently and on a predictable schedule.
Private 5G is particularly well-suited to meet these demands. Its architecture is designed for ultra-reliable low-latency communication (URLLC), a feature that is essential for real-time control loops in an industrial setting. This technical capability ensures that data flows are not only fast but also consistent, allowing AI systems to make time-sensitive decisions with confidence. The network can be engineered to guarantee performance levels for specific, mission-critical applications.
Enhanced Security and Customization
Beyond performance, private wireless networks offer significant advantages in security and customization. Paired with on-premises AI and edge computing, these systems allow organizations to configure connectivity, data processing, and data management according to their exact operational needs and security protocols. Unlike public networks, a private network can be precisely fine-tuned for coverage, latency, and bandwidth within a controlled environment like a factory, port, or campus.
A crucial benefit of this model is that confidential operational data remains on-site, mitigating risks associated with data transfer over public networks. The research highlights that private 5G incorporates substantial built-in cybersecurity features, including robust 256-bit cryptographic algorithms that set it apart from other access technologies. This adaptability allows for seamless integration with Internet of Things (IoT) infrastructure and the prioritization of mission-critical traffic. Businesses have the flexibility to choose their deployment strategies, frequency spectrum, and network designs, creating a bespoke and secure network that serves as a catalyst for genuine transformation. As one Director of Innovation for an aviation company stated, “Our ability to innovate in this way would not have happened without our private wireless network.”
The Future of Industrial Transformation
The path to the next era of industrial efficiency and innovation is built on data, with AI serving as the engine. However, the research demonstrates convincingly that this engine will stall without the proper digital infrastructure in place. The combination of private wireless networks and on-premise edge computing provides the secure, dependable, and low-latency foundation that industrial AI requires to operate effectively and scale across an organization. This technological pairing is the critical enabler for advancing efficiency, improving workplace safety, and fostering new innovations.
For telecommunications providers and industrial enterprises alike, the message is unambiguous. The opportunity lies in constructing these high-performance digital highways, empowering industries to embark on their transformative AI journeys. As industrial operations become increasingly digitized and automated, the need for purpose-built connectivity solutions will only grow. Litjens concludes that if the objective for a company is to thrive in the AI era, then private wireless connectivity should be a major strategic consideration.