The digital divide is evolving beyond household access to broadband. As artificial intelligence (AI) is woven into the fabric of everyday life — from smart homes and virtual assistants to creative and professional tools — a new divide is emerging: those with a fiber connection, and those without.
While the first half of this decade was defined by the rush to connect households lacking internet access during the COVID pandemic, the second half will be driven by the urgent need for fiber infrastructure to support AI. This isn’t just about the 2.3x increase in fiber miles (from 159 million to 373 million) required for data centers — it’s also about the nearly 70 million American households that still lack a fiber passing.
Let’s back up for a moment. Since the start of the pandemic, the federal government has funded over $100 billion dollars of broadband infrastructure programs to connect the hardest-to-reach locations with high-speed internet. Some of these programs required fiber, while others adopted a more technology-neutral mandate — and most differed in speed requirements. We all know the acronyms by now: CARES, ARPA, SLFRF, RDOF, CPF, ReConnect, TBCP, and, of course, BEAD.
Through these government funded programs — alongside additional state investment and an almost equal amount of private investment — the number of unserved households (below 25/3 Mbps) and underserved households (below 100/20 Mbps) as defined by the Broadband Equity, Access, and Deployment (BEAD) Program standard has fallen sharply: from approximately 12 million in 2021 to now approximately 3.7 million homes expected to be covered under the BEAD Program. As a result, any future federal funding for broadband will likely be technology-neutral and only be available for the limited number of locations that were missed by these other programs.
While the era of massive federal broadband funding is ending, the race to build the fiber foundation for the United States’ future with AI is just beginning. While these programs have made great progress in reducing the number of locations without high-speed internet, not all broadband is created equal. AI is ushering in a new wave of digital transformation, and meaningful participation depends on fiber connections.
Recon Analytics AI Pulse released the results of a study on AI use in August 2025. Among other things, the data showed that “users on fiber-optic connections are not just using AI more often; they are using it for more complex, demanding tasks.” The chart below details the stark disparity in AI usage based on the type of connection held.
For purposes of this article, I asked AI (ChatGPT) to tell me why fiber matters for consumers using AI technology. Below are a few of the key things it told me:
- Fiber enables more advanced AI usage.
- When using AI tools at home — for example, generative image/video tools, cloud gaming with AI enhancements, or smart home systems that rely on AI — high speed and low latency are important.
- Because fiber gives a higher floor of performance, users are less likely to hit frustrating slowdowns or latency issues, which helps maintain consistent AI usage.
- Upload speed matters more now (for user‐generated content, remote sessions, cloud sync), so fiber’s symmetrical speeds are especially advantageous for consumer use of AI.
Taken at face value, this suggests a growing divide in AI adoption between those with fiber connections and those without. While the government-funded programs of the last five years helped subsidize connections for the hardest-to-reach locations with the best available technology at the lowest cost, they didn’t solve the fiber gap.
The promise of AI won’t be fully realized on uneven infrastructure. Fiber is not just faster internet — it’s the essential fabric of the AI era, enabling real-time computing, immersive experiences, and participation in an economy increasingly defined by intelligence at the edge. As public funding recedes, the opportunity — and responsibility — now shifts to the private sector to finish the job. Connecting the remaining 70 million households isn’t just about broadband access anymore; it’s about ensuring every community can thrive in the age of AI.
Lori Adams, VP of Broadband Policy & Funding Strategy
Nokia
Lori Adams, VP of Broadband Policy & Funding Strategy, Nokia is responsible for developing strategies and tools to enable increased company participation in state, federal, and international programs supporting infrastructure deployment by Nokia’s business organizations. Adams is a highly skilled telecommunications attorney with more than twenty years’ experience and a successful track record in the government and private sector.
