• Regulators in South Korea and the European Union have issued formal AI regulations
• The new rules will result in higher costs for telcos, according to analyst firm Omdia

Formal AI regulations issued in South Korea and the European Union will result in extra compliance work and costs for telecom operators, which need to address the rules and account for the impact on their AI strategies, according to industry research firm Omdia. 

Both South Korea and the EU have adopted a “risk-based approach, where the highest-risk use cases face the most stringent rules,” noted Omdia. 

South Korea’s Basic AI Act, which became law early this year and comes into effect in January 2026, “only applies to developers or entities offering products and services utilising AI” and does not impact end users, the research firm noted. But as all three of South Korea’s telcos – SK Telecom, KT and LG Uplus – are investing heavily in AI infrastructure and service development, the rules will clearly affect them.   

The EU’s AI Act, meanwhile, came into force in August 2024. It has a number of legally binding requirements that are being applied to the market in stages (see this timeline) and impacts the whole AI ecosystem, from major developers to individual users. In August this year, a number of rules, including those related to general purpose AI (GPAI), governance and confidentiality came into force. The Act has faced widespread criticism – it is regarded by many, including Ericsson, as part of an unwieldy and fragmented approach to AI regulation that will hamper the region’s tech innovation, something the EU is desperate to foster – but the European Commission resisted calls for a delay in the implementation of the rules. 

“The overarching impact of these two regulations on telcos is the creation of more compliance work and costs to meet the new legal requirements for safety standards,” stated Sarah McBride, Omdia’s principal regulation analyst, in this announcement.

And it’s going to take a lot of effort on behalf of network operators to ensure they are covering all the legal bases. “Telcos must navigate key AI regulatory requirements across multiple policy areas, including high-risk situations, prohibited use, transparency and enforcement,” noted McBride. 

“They also face AI-specific policies and regulations regarding data and privacy, critical infrastructure security requirements, consumer protection measures and digital sovereignty considerations... AI encompasses a broad variety of concepts and technologies that are embedded in all aspects of a telco’s business… with a constantly evolving regulatory landscape, this can be challenging,” added the analyst.

“AI offers numerous opportunities for telco innovation, but risks must be assessed thoroughly before implementation, and standards for data quality, accuracy, robustness and non-discrimination must be adhered to,” she concluded.  

- Ray Le Maistre, Editorial Director, TelecomTV