Wireless and AI Are Evolving Together to Define the Future of U.S. Innovation Leadership

WASHINGTON - CTIA, the wireless industry association, today released a new report, Wireless & AI: Driving the Future of Innovation, examining how the two largest sources of infrastructure investment in America's economy-wireless and AI-are converging to power the next generation of technology. The report underscores the importance of a unified, national strategy to secure U.S. innovation leadership.

AI is rapidly moving out of data centers and into the real world, according to the report. Within the next two years, 75% of smartphones will be AI-powered, and the convergence of AI and wireless is enabling physical AI-agents doing tasks in the real world. This shift will transform industries, with robots, drones, and intelligent machines working alongside us in factories, hospitals, and on the front lines of public safety.

"AI and wireless are converging, and physical AI-where AI doesn't just answer questions but takes action in the real world-is where everything changes," said Ajit Pai, President and CEO of CTIA. "To lead this next era, America needs larger, contiguous blocks of mid-band spectrum, more infrastructure, and a unified national approach. The countries that understand this convergence and act on it will lead the next generation of innovation."

This is driving unprecedented demand: the U.S. recorded its largest-ever jump in wireless traffic last year, AI traffic is growing three times faster than overall wireless traffic, and AI is expected to account for 30% of all broadband traffic by 2034. Without action, one-third of AI traffic in high-traffic areas could go unmet within just a few years-a $1.4 trillion drag on the U.S. economy and America's AI ambitions, according to Accenture.

Wireless and AI are evolving together to address this challenge, with wireless networks already seeing 30% improvements in efficiency. New AI-native 6G networks will deliver additional improvements, enhancing the performance of both wireless and AI. But meeting these connectivity challenges requires a unified national strategy for AI and wireless, including:

• Expediting implementation of the 800 megahertz spectrum pipeline established by Congress, including the FCC's 2027 C-Band auction and progress on 2.7 GHz to address near-term demand.
• Prioritizing the 4 GHz and 6/7 GHz bands for future licensed use to provide the large, contiguous spectrum blocks needed for 6G.
• Replacing the state-by-state patchwork of permitting rules with nationwide standards to streamline AI and wireless infrastructure deployment.
• Pairing infrastructure policy with investment-friendly tax policy.

Getting these policies right isn't just a technology decision. It's an economic and national security imperative that will allow the U.S. to set the ground rules for the global AI economy.

The full report is available here.