Cisco’s 2024 AI Readiness Index Reveals a Rising Hole Between Urgency and Functionality

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Cisco has launched its second annual AI Readiness Index, highlighting an escalating urgency for organizations to implement synthetic intelligence whereas exposing important gaps of their skill to take action successfully. The report, which surveyed almost 8,000 senior enterprise leaders throughout 30 markets, reveals that solely 13% of corporations are absolutely ready to harness AI’s potential, down from 14% final yr.

Jeetu Patel, Chief Product Officer at Cisco, underscored the stakes: “Finally there will probably be solely two sorts of corporations: these which might be AI corporations, and people which might be irrelevant. AI is making us rethink energy necessities, compute wants, high-performance connectivity inside and between knowledge facilities, knowledge necessities, safety and extra.”

The Index paints a stark image of organizations struggling to maintain tempo with the calls for of AI whereas recognizing its transformative potential. Key findings embrace:

  • Urgency: Practically all respondents (98%) report elevated stress to deploy AI. Nevertheless, 85% imagine they’ve lower than 18 months to show its affect, with 59% giving themselves solely 12 months.
  • Infrastructure Gaps: Simply 21% of corporations have the required GPUs to deal with present and future AI workloads, whereas solely 30% have complete knowledge safety measures similar to end-to-end encryption and steady risk monitoring.
  • Declining Cultural Readiness: Board-level receptiveness to AI has dropped considerably, with solely 66% of boards being reasonably or extremely receptive, in comparison with 82% final yr. Worker resistance to adopting AI has additionally elevated, with 30% reporting hesitancy or outright resistance.

Though present AI implementations have fallen in need of expectations for almost half of respondents, corporations stay optimistic about its long-term potential. Within the subsequent 5 years, companies anticipate AI-related spending to comprise 30% of IT budgets, almost double in the present day’s ranges.

Nevertheless, readiness challenges persist. Solely 31% of organizations report excessive ranges of expertise preparedness for AI, and 24% point out they lack the in-house experience required for efficient deployment. Moreover, 51% cite a scarcity of pros with experience in AI governance, ethics, and legislation.

Governance stays a essential hurdle, with solely 31% of organizations having extremely complete AI insurance policies and protocols in place. Knowledge administration additionally lags behind, with 80% of respondents reporting points with pre-processing and cleansing knowledge for AI tasks, a determine nearly unchanged from final yr.

Moreover, monitoring knowledge origins stays a problem for 64% of organizations, including to the complexity of guaranteeing AI programs are correct and dependable.

The Index evaluates corporations throughout six key pillars—technique, infrastructure, knowledge, expertise, governance, and tradition—utilizing 49 metrics. Respondents are categorized into 4 readiness ranges: Pacesetters (absolutely ready), Chasers (reasonably ready), Followers (restricted preparedness), and Laggards (unprepared).

This yr’s outcomes reveal a noticeable decline in infrastructure readiness, compounded by a discount in cultural willingness to embrace AI-driven transformations.

Patel emphasised the necessity for quick motion: “Organizations have to be getting ready present knowledge facilities and cloud methods for altering necessities, and have a plan for find out how to undertake AI, with agility and resilience, as methods evolve.”




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