96% of North American CEOs plan AI
integration, but 49% believe their understanding of AI will
have a negative impact on the growth of their business over the
next 5 years. New research highlights what's getting in the way of
progress – and how CEOs plan to shift ambition into action.
News summary:
- While 4 out of 5 CEOs recognize AI's potential, many worry gaps
in their understanding will impact strategic decisions, risking
missed opportunities and falling behind competitors.
- Over 70% of North American CEOs feel their business loses
opportunities because of outdated network infrastructure.
- CEOs plan to stay ahead by investing in their people,
modernizing infrastructure, and strengthening cybersecurity, with
96% relying on trusted partners to future-proof their network for
AI.
TORONTO, Feb. 11,
2025 /CNW/ - A new study from Cisco, the
worldwide leader in networking and security, reveals a paradox
among North America's CEOs: while
4 in 5 recognize AI's potential benefits, and almost all plan to
integrate AI into their operations, many fear gaps in their
knowledge will hinder decisions in the boardroom (68%) and stifle
growth (49%) – risking missed opportunities and falling behind
competitors. Yet, CEOs are not standing still. With support from
their IT leaders and trusted partners, they plan on empower their
people, modernize infrastructure, and strengthen cybersecurity to
sharpen their competitive edge in an AI-driven future.
Cisco's Chief Product Officer, Jeetu
Patel, underscores the urgency to act: "In a dynamic
landscape where competition is fierce, speed decides the winners.
Leaders who act decisively today to build resilient, future-proofed
networks will be the AI-forward leaders driving real value for
their business. Eventually there will be only two kinds of
companies: those that are AI companies, and those that are
irrelevant."
CEOs fear the mounting costs of inaction
Cisco's research shows 67% of CEOs in North America are concerned about losing
ground to competitors and missing out on opportunities because of
IT and infrastructure gaps – fears that are already translating
into real losses. Nearly half of CEOs (45%) worry that a lack of
investment in technology is costing them competitive advantage,
while over half (58%) are concerned about the opportunity costs of
not investing more in technology. The costs of inaction aren't
hypothetical scenarios. If they don't invest in technology now,
CEOs expect higher operating costs, lower profits, reduced
productivity, and declining market share.
The bold act while others fall behind
For the leaders who confront their fears, the rewards will
transcend simply "keeping up." CEOs are turning to AI for its
transformative potential: driving efficiency (70%), spurring
innovation (66%), and outpacing competitors (57%). But fulfilling
that ambition requires CEOs to break down the barriers holding them
back from realizing AI's potential: skills shortages,
infrastructure gaps, and security risks (Figure 1).
While CEOs focus on the bigger picture, their CIOs and CTOs are
often grappling with operational hurdles like the lack of
compelling business use cases – a challenge CEOs rank lower (Figure
1). This tension perhaps reflects AI's exploratory phase, where the
82% of global CEOs who recognize AI's potential benefits must
support bold experimentation in the short term to uncover value in
the long term.
Raj Juneja, President of Cisco Canada, highlights the
opportunity: "Leaders are eager to scale AI, but they're running
into skill shortages, bandwidth limits, energy constraints and
security risks. No one can solve these in silos. Businesses,
partners and technology must come together to drive the future of
AI. That's why 96% of North American CEOs are turning to trusted
partners to future-proof their infrastructure and stay ahead."
The CEO's Blueprint: People, infrastructure, and
cybersecurity
Cisco's research reveals CEOs' plan to turn fear into progress –
investing in knowledge and skills, upgrading infrastructure, and
enhancing security to prepare for the demands of AI (Figure 2).
Delivering on this blueprint will require decisive technology
leadership both within the organization and through trusted
partnerships. CEOs across North
America are increasingly looking to their CTOs and CIOs,
with more than 80% recognizing their vital role in guiding business
and investment decisions. More and more, technology leaders are
business leaders who see modern networks and technology not just as
tools, but as enablers of growth, resilience, and innovation.
CEOs know they can't deliver on their blueprint without expert
support: 96% are turning to trusted partnerships to future-proof
their network for AI. With bold technology leadership inside and
beyond their organizations, the CEOs have the expertise to navigate
uncertainties and translate AI's potential into tangible
outcomes.
Cisco continues to help organizations overcome complexity and
create opportunity in the AI era
Skills shortages, implementation challenges, AI-ready
infrastructure, and cybersecurity are top concerns for IT teams and
leaders across industries. Cisco's upcoming announcements aim to
address these challenges: closing gaps between security and
networking for AI data centres, empowering Service Providers with
new revenue-generating tools, and equipping the next generation of
AI-forward professionals with enhanced certifications.
Download highlights from Cisco's CEO research here
The CEO study, conducted by Opinion Matters (24 Dec 2024–2 Jan
2025), surveyed 500 CEOs from companies with 250+ employees across
North America. A companion study with 8,065 senior networking
leaders will follow in the coming months, exploring the strategic
and operational needs of AI-era networking and security.
Additional resources:
- Cisco's 2025 AI Briefing - CEO Edition: Essential insight on
CEO fears, ambitions, and action on AI
- Press release: Cisco Unveils AI Defense to Secure the AI
Transformation of Enterprises
- Blog: Protecting AI so AI can improve the world, safely
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is
revolutionizing the way organizations connect and protect in the AI
era. For more than 40 years, Cisco has securely connected the
world. With its industry leading AI-powered solutions and services,
Cisco enables its customers, partners and communities to unlock
innovation, enhance productivity and strengthen digital
resilience. With purpose at its core, Cisco remains committed
to creating a more connected and inclusive future for all. Discover
more on The Newsroom.
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between Cisco and any other company.
SOURCE Cisco
