London, 16 October 2025: Analysis of Omdia’s new report “Regulating AI in the Telecommunications Sector – 2025” reveals that telcos need to consider formal AI regulations issued by two jurisdictions: the EU and South Korea. Both take a risk-based approach, with the strictest rules applied to the highest-risk use cases. Unlike the EU AI Law, Korea’s AI Basic Law only applies to developers or entities that provide AI-powered products and services, not AI users.
“The most significant impact of these two regulations on carriers is increased compliance efforts and costs to meet new legal requirements for safety standards,” said Sarah McBride, Principal Regulatory Analyst at Omdia.
Several other jurisdictions have begun regulatory efforts through public consultations, but many may take some time to be finalized. Regulators around the world are weighing the risks and benefits of AI and are considering imposing regulations that address risks such as biased and unreliable data, liability in the event of errors, trust, privacy, and security.
AI encompasses a wide range of concepts and technologies that are incorporated into every aspect of a telco’s business. Therefore, different guidelines need to be followed depending on when and where AI is used. However, this can be difficult as the regulatory environment is constantly evolving.
“Telcos will need to comply with key AI regulatory requirements across multiple policy areas, including high-risk situations, prohibitions, transparency, and enforcement,” McBride said. “They also face AI-specific policies and regulations regarding data and privacy, critical infrastructure security requirements, consumer protection measures, and digital sovereignty considerations.
However, it would be wise for telcos to proactively implement risk management frameworks within their systems and take the lead in promoting ethical and responsible AI technology. “AI offers many opportunities for innovation for telcos, but the risks must be thoroughly assessed before implementation, and data quality, accuracy, robustness and non-discrimination standards must be adhered to,” McBride explained.
Figure 1: Potential risks and challenges for telcos due to AI implementation
