The AI Opportunity Moves to the Edge: How 5G and Edge AI Agents Transform Networks
The AI revolution is entering a new phase — and that’s good news for carriers and service providers.
Phase 1 of the global shift to AI focused on training large language models (LLMs) in giant data centers packed with expensive GPUs.
In Phase 2, which is currently underway, the focus shifts to autonomous agentic AI agents installed at the network edge.
As with so many “new” trends in communications, we’ve seen this before — back in the 1980s, with the transition from centralized mainframes to client-server computing. That shift prompted the need to increase network capacity at the periphery of the network from coaxial cables supporting a few hundred kilobits per second to twisted pair cables and protocols capable of megabit speeds, which in turn spawned a new and profitable local area network (LAN) industry.
The Need for Agentic AI Agents at the Edge of the Network
And that, right there, is the solution to the existential question that service providers have been asking themselves for the last two-and-a-bit years: how do we get a piece of the AI revolution? (And, of course, it also finally answers another carrier question:
“Why the heck do we need 5G?” Because only 5G, not 4G, can deliver the AI-native, cloud-native, network-sliced, low-latency network that inference requires).
So, the answer for carriers is to stick to their knitting: upgrading and improving the edge networks providing the essential architecture in anticipation of ubiquitous agentic AI.
Equally importantly, the new edge phase of AI also provides carriers with clarity on what not to do. Service providers have spent much of the last couple of years arguing internally over whether their future lies in building AI factories or enabling an ecosystem to launch an AI-enabled OTT-style consumer app. Those are terrible strategies (unless you had the foresight to see this whole AI trend coming a decade ago and start a new company with a strong, wide moat — like
Vultr or
Cerebras).
This is a shift in the AI market that is bigger than AI itself — or carriers, or telecom, for that matter. The combination of agentic AI and inference-capable edge networks provides the infrastructure for
a new global digital economy in which all businesses and industries become smarter, more efficient, and more sustainable. Carriers now have an essential role in building it.
Op-eds from industry experts, analysts or our editorial staff are opinion pieces that do not represent the opinions of Fierce Network.
Source: Originally published at Fierce Network on August 11, 2025.
Frequently Asked Questions (FAQ)
Understanding Edge AI and 5G
Q: What is "Edge AI"?
A: Edge AI refers to the implementation of artificial intelligence algorithms directly on devices or local servers at the "edge" of a network, rather than relying solely on centralized cloud data centers. This allows for faster processing, lower latency, and enhanced privacy.
Q: How does 5G enable Edge AI?
A: 5G's high bandwidth, ultra-low latency, and increased capacity are crucial for enabling Edge AI. These capabilities allow for the rapid transfer of data between edge devices and AI processing units, as well as the deployment of complex AI models at the network's periphery.
Q: What are "agentic AI agents"?
A: Agentic AI agents are sophisticated AI systems designed to operate autonomously, make decisions, and take actions to achieve specific goals without constant human intervention. They are at the forefront of the next phase of AI development.
The Role of Carriers and Service Providers
Q: What is the main opportunity for carriers in the current AI phase?
A: The primary opportunity for carriers lies in upgrading and improving the network edge infrastructure to support the demands of agentic AI and inference at the edge. This involves building the essential architecture for this new wave of AI.
Q: Why is 4G insufficient for inference-based AI?
A: 4G networks lack the low latency, network slicing capabilities, and overall speed required for efficient AI inference, which involves real-time processing of data by AI models. 5G, on the other hand, is designed to be AI-native and cloud-native, making it ideal for these applications.
Q: What strategies should service providers avoid in the AI revolution?
A: Service providers should avoid strategies focused solely on building AI factories or solely on launching AI-enabled consumer apps. The core strength of carriers lies in providing the underlying network infrastructure.
The Broader Impact of Edge AI
Q: How does the combination of Edge AI and 5G transform industries?
A: This combination forms the backbone of a new global digital economy, enabling all businesses and industries to become smarter, more efficient, and more sustainable by leveraging AI at the network edge.
Crypto Market AI's Take
The evolution of AI from centralized data centers to the network edge, powered by 5G, mirrors the transformative shifts seen in previous technological eras, much like the transition from mainframes to client-server computing. This decentralization of AI processing has significant implications for how we interact with and leverage technology. At Crypto Market AI, we recognize this paradigm shift and its potential to unlock new efficiencies and innovations across various sectors, including finance. Our platform leverages advanced AI and machine learning to provide cutting-edge market intelligence and trading solutions. For insights into how AI is impacting financial markets and the cryptocurrency space, explore our comprehensive guides on
AI in Finance and our analysis of
AI Trading Bots.
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