With AI returns failing to materialise, new research from Nokia suggests that rather than invest in doomed AI pilots, firms could make more gains by focusing on private wireless and on-premise edge.

The communications giant’s latest Industrial Digitalization Report  found that 87% of on-premise edge and private network adopters have seen a return on investment in just one year, and are using it to unlock AI’s potential in complex industrial environments.

Drawing on insights from 115 companies across manufacturing, energy, logistics, mining, and transportation around the world, Nokia found that 94% of industrial enterprises have deployed on-premise edge technology alongside private wireless, with 70% using it to support AI-driven use cases like predictive maintenance, real-time monitoring, and digital twins.

Among the key benefits of running AI on on-premises edge platforms are improved performance and reliability (75%), the ability to gain real-time insights (63%), and increased privacy (54%), as well as reduced costs and independence from cloud providers (44%).

Nokia’s report, published alongside GlobalData, spotlights how moving AI development and deployment to these platforms is giving the biggest enterprises a leg up. 

Chemical company BASF, for example, is using private wireless at its Antwerp facility to advance digitalisation and allow for more reliable, high-performance connectivity across its six-square-kilometre premises. 

According to the report, BASF’s private network is powering a suite of AI-driven capabilities, including automation, real-time monitoring and predictive maintenance, as well as improving worker safety and reducing environmental impact.

“Private 5G has been a game changer for BASF Antwerp,” said Steven Werbrouck, BASF’s resident expert in network connectivity.

“We’re unlocking automation, strengthening occupational safety, accelerating innovation, and meeting ROI targets in just two years. We have become a front-runner for the wider group with learnings that will deliver value at multiple BASF group locations.” 

The study also highlights how performance improvements driven by private wireless networks are supporting sustainability, with 94% of enterprises reporting lower carbon emissions and 89% seeing energy savings. 

Strikingly, Nokia found that 41% of firms had achieved more than a 20% reduction in carbon emissions by using private wireless and on-premises edge tech, which has reportedly helped in the collection of accurate emissions data and has cut fuel-intensive travel in favour of drones.

Just as important as its environmental impact, on-premise edge and private wireless are also improving cybersecurity and continuity.

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More than half (57%) of firms identified cybersecurity as a main driver behind the deployment of industrial edge platforms powered by a private wireless network, while 45% cited business continuity as their top reason for using these technologies.

Nokia’s report points out that private 5G natively uses 256-bit cryptographic algorithms and offers a physical separation from other access technologies like WiFi, making it harder for threat actors to penetrate but easier to meet compliance regulations for critical industries.

According to the study, these types of security benefits are why private wireless and edge are increasingly trusted in sensitive locations like nuclear power plants and airports. 

“Private wireless and edge have helped enterprises to improve worker safety, support sustainability, and create a delivery platform for AI-powered solutions such as process automation and predictive maintenance,” said Gary Barton, research director at GlobalData.

“These deployments are delivering a clear return on investment and enabling use cases that would not otherwise have been possible.”