This report explains how generative and agentic AI will massively increase IP network traffic and strain today’s transport infrastructure. Existing networks suffer from high latency, poor observability, siloed architectures, space/power limits, weak integrated security, and limited edge support. To cope, service providers must modernize with converged IP/optical designs, 400/800 GbE capacity, edge computing, SRv6-based traffic engineering, and quantum-resistant security. AI itself (AIOps) will improve efficiency, reliability, and monetization through automation, fault prediction, smarter routing, and new low-latency edge services.

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