A new global study from Cisco underscores a critical reality for organizations worldwide: the network infrastructure decisions made today will define the business outcomes of tomorrow. As AI-powered workloads and applications reshape enterprise demands, investing in AI-ready infrastructure has become a strategic necessity.
The Network as a Strategic Enabler
According to the survey of over 8,000 senior IT and business leaders, 97 percent agree that a modernized network is essential to rolling out AI, IoT, and cloud initiatives. Nearly all respondents (91 percent) plan to increase the share of their IT budgets allocated to networking. This signals a growing consensus that robust, adaptive, and secure networks are foundational to digital transformation.
AI is Driving New Infrastructure Requirements
AI is changing computing and networking demands across the board. As AI agents, assistants, and data-intensive workloads drive faster and more dynamic traffic, legacy systems are proving insufficient:
71 percent of leaders say their current data centers cannot meet today’s AI requirements.
88 percent plan to expand infrastructure capacity—on-premises, in the cloud, or both —to support AI workloads.
98 percent see autonomous, AI-powered networks as essential for future business growth.
Despite this recognition, only 41 percent have deployed intelligent capabilities like segmentation and real-time visibility, exposing a significant gap between vision and execution.
Downtime and Risk Are Costing Billions
The business case for investment is not only about growth — it’s also about avoiding loss. Resilient networks are vital in an environment where 77 percent of organizations experienced major outages last year. These incidents, often caused by cyberattacks, misconfigurations, and congestion, cost up to $160 billion globally from just one severe disruption per company, per year.
Growth, Efficiency, and Savings: The Value of Modern Networks
Organizations already see returns from their networking investments. Respondents report delivering financial value through:
Improved customer experience (55 percent)
Greater operational efficiency (52 percent)
Increased innovation (51 percent)
However, many recognize this value is limited without networks built for AI and real-time scale. Key limitations include:
Siloed systems (58 percent)
Incomplete deployments (51 percent)
Manual processes (48 percent)
By modernizing networks, 89 percent believe they can directly drive revenue, while 93 percent anticipate meaningful cost savings—through reduced outages, lower energy use, and more intelligent operations.
Executive Alignment Is Fueling Momentum
Crucially, the C-suite is aligned with IT leaders on the urgency of investing in AI infrastructure. Cisco found that:
97 percent of CEOs are expanding AI use.
78 percent rely on CIOs and CTOs for infrastructure decisions.
74 percent admit outdated infrastructure is already stalling growth.
96 percent say trusted technology partnerships will be essential for success.
As Chintan Patel, CTO and VP of Solutions Engineering at Cisco EMEA, puts it, “AI is changing everything — and infrastructure is at the heart of that reinvention.”
Conclusion
AI is not just another workload — it’s a catalyst for architectural transformation. The message from Cisco’s research is clear: companies that modernize their infrastructure today will be the ones that lead in the AI-powered future. Those who delay risk falling behind in performance, innovation, and profitability. The network is no longer just a platform for connectivity — it is the platform for business growth.
Rajani Baburajan
