2027 Edition — Available Now

Telecom
Outlook 2027

The trends and insights telecom leaders need to govern what AI is building in 2027.

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4.1% of enterprise code in production in telecom is AI-generated
84.3% of telecom code volume falls below our recommended maintainability rating
€870K saved in developer time, per system, per year, by cutting code-level technical debt
Telecom Outlook 2027 cover mockup

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The 2027 pattern

AI accelerates whatever discipline already exists.

90% of technology professionals now use AI at work, and the volume of code entering organizations is rising faster than at any point in software history. The organizations capturing the productivity gains without inheriting the risk share one trait: they can see what they are running, measure quality continuously, gate it before code reaches production, and prioritize remediation by business impact. Six chapters break down where telecom stands today.

Chapter 01 — AI coding

Telecom has the highest share of AI-generated code of any industry we benchmark: 4.1%

In SIG's experiment, AI-generated code carried roughly double the security risk violations of human-written code. Agentic coding tasks can consume up to 1,000 times more tokens than standard code chat.

Chapter 02 — Technical debt

€870,000 in developer time, per system, per year

That's what is recovered by moving a system from 2-star to 4-star maintainability. On January 14, 2026, a software defect took Verizon's network down nationwide for more than ten hours.

Chapter 03 — Maintainability

84.3% of telecom code volume sits below the recommended threshold

Telecom's architecture is the strongest of any industry we benchmark. The systems are well-structured, but the code inside them is in poor shape.

Chapter 04 — Security

44.5% of telecom code falls below our recommended security rating

Open-source health is the weaker side: 84.1% of telecom code volume sits below the recommended rating, the highest share of any industry we benchmark. Across SIG's benchmark, the average system carries 20 critical security findings.

Chapter 05 — Architecture

33.3% of telecom code sits below our recommended architecture quality rating

A Nokia-commissioned survey found 98% of operators need to modernize their BSS to enable new 5G services. Gartner predicts over 40% of agentic AI projects will be canceled by the end of 2027.

Chapter 06 — AI systems engineering

72% of AI systems score below the maintainability threshold

Roughly 1.5% of enterprise systems in production qualify as AI systems. Deutsche Telekom and Telenor are reported to have agentic AI live for OSS/BSS.

“

The argument is for closing the gap between the pace of AI adoption and the legacy reality underneath it, rather than layering more of one on top of the other.

Luc Brandts, CEO of Software Improvement Group
Luc Brandts CEO, Software Improvement Group
Who it's for

Built for the leaders governing software in the AI era.

Each chapter speaks to a different seat at the table. Start with yours, then read the rest to understand what your peers are working against.

CIOs & IT leaders

See where budget might be locked up

Deloitte estimates technical debt accounts for 21% to 40% of an organization's total IT spending. In telecom, 84.3% of code volume sits below the recommended maintainability rating.

Chapters 02, 03
CTOs & engineering leaders

Govern AI-assisted development

Agentic coding tasks can consume up to 1,000 times more tokens than standard code chat. See what AI coding costs, and where AI output needs a harness before it reaches production.

Chapters 01, 06
CISOs & security leaders

Close the AI security gap

Telecom's open-source health is the weakest of any industry we benchmark. See where AI-generated and open-source code is carrying more risk than your review process can catch.

Chapter 04
Architecture & delivery leaders

Fix what's blocking agentic AI

Telecom's architecture is the strongest we benchmark, yet operators still name legacy BSS/OSS platforms as a leading obstacle. See what it takes to modernize that layer alongside the agentic rollout.

Chapter 05
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Get the Telecom Outlook Report 2027.

  • Six in-depth chapters covering AI coding, technical debt, maintainability, security, architecture, and AI systems engineering
  • Benchmark data drawn from more than 30,000 systems and over 400 billion lines of code
  • A sector-specific lens on telecom, set against the best independent research available on this sector's own modernization pressures and threat landscape
  • Real experiments comparing AI-only and human-in-the-loop builds, and what guardrails do to agentic output

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