New Bandwidth-Cavell Research: EMEA Enterprises Face a Pivotal Moment in AI Adoption Amid Rising Regulation, Trust Pressures
Rhea-AI Summary
Bandwidth (NASDAQ:BAND) and Cavell released "The State of EMEA Enterprise Communications 2026," a survey of 500 EMEA IT and telecom leaders showing enterprises prioritise security, trust and regulatory-ready platforms over rapid AI rollout. Key metrics: 63% cite security/fraud/compliance as top challenge; 99% rely on MSPs; 75% have partially moved contact centers to cloud.
The report stresses cautious, intentional AI adoption built on resilient, multi‑carrier hybrid architectures to preserve uptime and customer trust across diverse EMEA regulatory environments.
Positive
- 99% of enterprises rely on managed service providers
- 75% have partially shifted contact centers to cloud
- 49% of organizations rank AI/ML as a top 2026 priority
- 46% operate a hybrid carrier model for resilience
Negative
- 63% cite security, fraud and compliance as primary communications challenge
- 64% worry voice providers may not maintain uptime amid regulatory change
- 66% report legitimate outbound calls being labelled as spam or scam
Key Figures
Market Reality Check
Peers on Argus
BAND fell 7.67% while several software infrastructure peers were also down (e.g., BLZE flagged in momentum at about -2.75%), but only one peer appeared in the scanner, pointing to a stock-specific move rather than a broad sector rotation.
Previous AI Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Sep 30 | AI award win | Positive | -4.5% | Won Ally Financial technology disruptor award for AI-enabled cloud transformation. |
| Sep 24 | AI integration update | Positive | +0.1% | Announced support for OpenAI Realtime API to power AI voice agents. |
| Sep 16 | AI/trust keynote | Positive | -2.5% | Reverb25 event showcasing new AI and trust innovations in communications. |
| Sep 3 | AI event pre-announcement | Positive | +0.7% | Announced upcoming Reverb25 virtual event focused on AI and trust solutions. |
| Jul 22 | AI fraud roundtable | Positive | +1.2% | Hosted London roundtable on AI-era fraud, compliance and trust services strategy. |
AI-tagged releases have produced an average move of about -1%, with a mix of modest gains and declines, suggesting that AI/trust messaging has not consistently driven strong upside.
Recent news flow combines solid fundamentals with an expanding AI and trust narrative. On Feb 19, 2026, BAND posted record $25M Q4 Adjusted EBITDA, $31M free cash flow and authorized an $80M buyback, guiding to mid-teens 2026 revenue growth. AI-focused updates through 2025 highlighted new integrations, awards, and customer roundtables around fraud, compliance, and trusted communications. Today’s EMEA AI adoption report extends that theme, positioning Bandwidth as a thought leader on regulated, trust-centric AI communications rather than announcing a discrete product or financial catalyst.
Historical Comparison
Past AI-tagged releases averaged about a -1% move. Today’s -7.67% decline is notably steeper than typical AI/trust updates, suggesting a weaker market tolerance for this theme around the current backdrop.
AI-related news has progressed from roundtables and event previews to concrete integrations, customer recognition, and now regional research on regulated, trust-centric AI communications.
Market Pulse Summary
This announcement reinforces Bandwidth’s positioning at the intersection of AI, trust, and regulated communications, using insights from 500 large EMEA enterprises. It underlines that 63% see security, fraud and compliance as their top challenge, while 49% prioritize AI/ML for 2026. Together with prior AI-focused events and integrations, the report highlights a strategy centered on trusted, adaptable communications stacks, where progress in adoption will depend on regulation, uptime, and customer confidence.
Key Terms
ai technical
machine learning technical
managed service providers technical
AI-generated analysis. Not financial advice.
Survey of EMEA enterprise IT and telecom leaders finds security, trust and adaptability now outweigh rapid transformation in enterprise communications strategies
That's the key finding of "The State of EMEA Enterprise Communications 2026," a new report from Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, in partnership with Cavell, a global research and consulting firm specializing in communications. The report draws on insights from 500 IT and telecom decision-makers at EMEA-headquartered companies with 1,000 or more employees.
"Enterprises are advancing their communications strategies carefully, balancing innovation against regulatory readiness, security risk and the realities of operating across multiple countries," said Finbarr Begley, Senior Analyst at Cavell. "Security, fraud and compliance are different corners of the same maze in EMEA, and together they shape how quickly organizations can modernize."
"EMEA enterprise leaders must walk a tightrope: innovating with purpose, modernizing with caution and building infrastructure that's resilient and adaptable," said Timir Patel, Senior Vice President and General Manager of Global Voice Plans at Bandwidth. "For progress to speed up, enterprises must first solve platform-level complexity across countries, regulations and use cases. Bandwidth's platform is designed to meet the demanding needs of this environment."
Key insights in the report include:
Security, trust and compliance define the communications challenge
The most urgent finding for enterprise CIOs was that security, fraud and compliance dominate communications priorities in EMEA:
- 63 percent of enterprises cite security, fraud and compliance risks as their most significant communications technology challenge.
- 64 percent express concern that their voice provider may not maintain uptime as regulations evolve, underscoring anxiety around service continuity during regulatory change.
AI advances, but only on trusted foundations
AI and machine learning are firmly on the enterprise agenda:
- 49 percent of organizations rank AI/ML implementation as a top communications priority for 2026.
- Security and fraud prevention follow closely at 46 percent, reflecting the need to balance ambition with risk management.
Regional differences highlight this tension:
Managed Service Providers turn fragmentation into flow
In a fragmented and regulated environment, managed service providers (MSPs) have become critical to keeping EMEA enterprise communications operational, compliant and scalable. Rather than acting as transactional vendors, MSPs now function as long-term operational partners:
- 99 percent of enterprises rely on MSPs, typically working with two to three providers, to manage regulatory, operational and vendor complexity across markets.
- While security and compliance rank as the top buying criteria (53 percent), enterprises depend on MSPs for end-to-end service management, multi-vendor integration and cloud migration or modernization, according to the research.
A multi-carrier, hybrid-cloud reality
Geographic and technology fragmentation have anchored EMEA in a multi‑carrier, hybrid-cloud reality. This approach accommodates the region's uneven cloud maturity, diverse regulatory demands and the ongoing need for on‑premises systems due to security and compliance requirements:
- 46 percent of enterprises now operate a hybrid carrier model, blending a global core with local providers for regulatory coverage and resilience.
- 75 percent have partially shifted their contact center to the cloud, placing most of the region squarely in a hybrid state.
EMEA vs.
- Rather than rapid deployment, EMEA enterprises are integrating AI "with intention, not impulse" by layering it into existing workflows. AI acts as a force multiplier only when built on reliable, compliant communications infrastructure, the report emphasizes.
- In
North America , lower starting complexity and earlier cloud and AI investments allow leaders to focus on optimization and scale. - Across both regions, trust in voice communications is eroding, leading to clear business impact:
- 66 percent of EMEA enterprises report legitimate outbound calls being labelled as "spam" or "scam," disrupting customer engagement and sales activity.
- Comparable Bandwidth research in
North America shows a similar trend, with 42 percent of IT leaders reporting spam mislabelling of their contact center numbers.
Adaptability emerges as the real differentiator
Across all findings, a consistent theme emerges: adaptability defines success. The enterprises staying ahead are not necessarily those moving fastest. Success depends on communications stacks that can adapt to regulatory change, AI adoption and cloud expansion, while protecting uptime and trust.
Download the report
"The State of EMEA Enterprise Communications 2026" report is based on a survey of 500 EMEA-based IT and telecom decision-makers across industries including financial services, retail, healthcare, technology and manufacturing, with respondents concentrated in the
About Cavell
Cavell is a leading research and consulting firm specialising in the telecommunications industry, with a strong focus on business communications technologies including UCaaS, collaboration, contact centre and customer engagement software, business messaging and Microsoft Teams. We provide insights, analysis and advisory services to help you navigate and succeed in these rapidly evolving sectors.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world transform their communications every day.
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SOURCE Bandwidth Inc.
FAQ
What are the top communications priorities for EMEA enterprises in 2026 according to BAND?
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What level of AI adoption do EMEA companies plan in 2026 per Bandwidth (BAND)?
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