- 97% of IT leaders say a modernised network is crucial for AI, IoT and cloud deployment.
- Global outages cost businesses $160B annually due to congestion, attacks and misconfigurations.
What happened: Rising AI demands push urgent network upgrades
Cisco’s latest global research reveals a sweeping shift in enterprise networking. Over 8,000 IT and business leaders took part in the study across 30 countries. The findings show strong demand for smarter, more secure, and more adaptive infrastructure.
97% of IT leaders say they need modern networks to roll out AI, IoT, and cloud workloads. 91% plan to increase their networking budget in the next year. These leaders see networks as the foundation of future growth and innovation. 77% of businesses experienced a major outage in the past year. The main causes were congestion, cyberattacks, and configuration mistakes. Cisco estimates each severe incident costs millions, adding up to $160 billion globally per year.
Many IT systems still rely on outdated tools and manual operations. 58% of respondents report siloed infrastructure that limits real-time visibility and response. 48% still depend on manual oversight, which slows detection and recovery. Cisco found that businesses already generate value from better infrastructure. Improved networks increase customer satisfaction, boost efficiency, and accelerate innovation. But much of that value remains at risk if networks can’t scale with AI demands. Most companies know they must act fast. AI tools increase data traffic and latency sensitivity. Without adaptive networks, service quality and security may suffer. Cisco’s findings underline the urgency of network modernisation in every sector.
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Why it is important
The research signals a clear warning: without smarter, more resilient infrastructure, AI’s promise could be undermined by brittle systems. Nearly all leaders (95%) say resilient networks are now critical to business continuity in an AI-driven world.
AI’s impact is also being felt across data centres. Cisco reports 71% of IT leaders say their current infrastructure cannot support modern AI workloads, prompting expansion in both cloud and on-premises capacity. Despite high awareness, only 41% of organisations have deployed intelligent network features like segmentation and real-time visibility. This gap could limit business gains unless addressed quickly. As Cisco EMEA CTO Chintan Patel noted, “AI is changing everything — and infrastructure is at the heart of that reinvention.”
The message from the C-suite is equally clear. A majority of CEOs are expanding AI efforts and 78% now rely on their CIOs or CTOs for digital investment leadership. Companies that act now, Cisco suggests, will be best placed to lead in the AI era.
