AI spending soars as network investment lags in global expansion
A new report highlights that while global business expansion is accelerating, connectivity investment is lagging behind as organisations channel budgets into artificial intelligence.
The Global Business Connectivity Outlook Report, published by managed services provider Coevolve, surveyed more than 50 global business leaders on their outlook and technology strategies for the coming year. The report found that over 70% of participants plan to extend operations beyond their current locations in the next 12 months.
Driven primarily by the pursuit of new markets, which motivates more than half of those looking to expand, businesses are also seeking to develop new products (24%) and address personnel requirements (10%). Yet, expansion is accompanied by mounting challenges tied to compliance (18%), technology (17%), and security (17%).
Despite almost three in four leaders acknowledging that enhanced global connectivity is essential, discussions at board level remain dominated by artificial intelligence, automation, and cyber resilience. The report warns that investment in network architecture and connectivity infrastructure is not keeping up with its perceived criticality.
When asked about their technology investment priorities for improving global connectivity, one in three cited AI initiatives, followed by cloud services (24%) and network architecture (19%). Funding allocations reflect this trend, with AI receiving 45% of overall technology spend, while cloud solutions capture 33% and only 8% is directed towards network architecture.
Coevolve's Chief Technology Officer and Co-Founder, Ciaran Roche, expressed concern at the findings.
"It's staggering to see just how much network connectivity and security are being sidelined in favour of AI hype, leaving businesses exposed to risk, disruption, and digital fragility. AI is nearly absorbing half of the technology budgets, but the foundational infrastructure that enables it is being neglected. You can't scale and grow on a broken foundation."
Tim Sullivan, Chief Executive Officer and Co-Founder, spoke to the apparent disconnect between AI investment and the realities of global expansion.
"It isn't a surprise that so many businesses are expanding globally, however, the AI paradox that is emerging is. Companies are investing heavily in AI, yet we still haven't seen the full impact of AI on telecommunication networks and traffic flows across regions and countries.
"A new era of connectivity is emerging. Enterprises must address changing requirements, including enhancing networks and ensuring adaptability to enable seamless connectivity for their global businesses. Data generation won't slow down; it will only increase with AI, and reliable connectivity is essential to enable this. In 2026, business leaders must shift their focus and assess their digital foundation, giving global connectivity more attention and a higher budget in the year ahead", he concluded.
The report's authors emphasise that the growing volume of data generated by AI and other technologies puts additional pressure on network infrastructure. Although the operational resilience and success of business expansion depend on robust connectivity, board discussions often overlook this requirement.
Coevolve's research offers an independent perspective by drawing on in-depth interviews with leaders overseeing international operations, providing insight into current trends in technology priorities and budget allocation.
