Companies are forging ahead on artificial intelligence (AI) adoption, but are they ready? Most admit they’re less prepared to implement AI than a year ago, based on a survey released Tuesday.
The 2024 Cisco AI Readiness Index, a survey of 7,985 business leaders responsible for AI integration and deployment at organizations with more than 500 employees, reveals current AI investments don’t meet expectations and many companies face a significant time crunch to make AI work within their business.
AI readiness dropped to 13% from 14% a year ago as companies struggle with potential impediments such as a lack of manpower with the proper skills to build, scale and maintain required IT infrastructure; concerns over cybersecurity risks posed by AI workloads; and long lead times to procure required technology and solutions.
“We’ve seen especially low levels of readiness in the infrastructure pillar, which may be the most essential for AI implementation,” Mark Patterson, Cisco’s chief strategy officer, said in an email. “Leaders should assess their organization’s current infrastructure across networking, data and security and then act to fill existing gaps by investing in the skills and tools needed to make AI a reality.”
“With an accurate picture of their organization’s AI readiness, business leaders can address the areas that are holding them back to build a strong foundation and finally move forward on their AI journey,” Patterson said.
But with many organizations not entirely AI-ready, there is mounting friction on internal operations to get it right — and fast. Most companies face a significant time crunch to make AI work: 98% say there is an urgency from the CEO and leadership team. Some 85% added they have 18 months or less to implement an AI strategy before incurring significant negative business impacts.
Much is at stake. An alarming two-thirds (66%) of companies admitted to moderate awareness of how malicious actors are using AI to make cyberattacks more sophisticated. And only 21% of organizations said they have the GPUs necessary for current and future needs (down from 28% a year ago).
Despite concerns about preparedness, organizations remain committed to adopting and deploying AI.
To that end, spending on AI is growing rapidly. About 30% of IT budgets will be ear-marked for AI in the next four to five years, nearly double what it is today. Yet 60% of those surveyed admit there will be minimal impact from their AI investments over the next 12 months.
Still, companies expect AI projects to eventually open new revenue streams and increase profits. Some 30% anticipate AI investments will pay off in five years or longer, according to Cisco’s survey.
