AI readiness on the decline as only 18% of companies fully prepared to embrace AI: Cisco report

The AI readiness of Indian companies has significantly declined when compared to a year ago.

The report by Cisco is based on a survey of 3,660 senior business leaders from companies with over 500 employees across 14 markets in the APJC region. (Image: FreePik)

Even as AI is dominating industries with more companies scrambling to cash-in on the wave, the reality paints a different picture. Only 18 per cent of companies in India are fully prepared to deploy and use AI-powered technologies. The recently published Cisco 2024 AI Readiness Index report shows that AI readiness was significantly down compared to a year ago when it was 20 per cent.

“As companies accelerate their AI journeys, it’s critical they adopt a comprehensive approach to implementation and connect the dots to link AI ambition with readiness,” said Dave West, president, APJC, Cisco. According to the report, the decline in AI readiness highlights the challenges companies face while adopting, deploying, and fully leveraging AI. This readiness gap is critical considering the rapid market evolution and the impact of AI on business operations.

The report by Cisco, a leading networking and security provider, is based on a survey of 3,660 senior business leaders from companies with over 500 employees across 14 markets in the APJC region. The leaders surveyed are responsible for AI integration within their organisations. The company said that the AI readiness index is measured based on six pillars – strategy, infrastructure, data, governance, talent, and culture.

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According to West, this year’s AI Readiness Index shows that to fully harness the potential of AI, companies need a modern digital infrastructure that is capable of meeting evolving power needs and network latency requirements from growing AI workloads. “This must be supported with the right visibility to achieve their business objectives.”

The report cites infrastructure as a key pain point as only 21 per cent organisations have the necessary GPUs to meet the current and future AI demands. Around 36 per cent have the capabilities to protect data in AI models with end-to-end encryption, security audits, continuous monitoring, and instant threat response. AI investments by companies were focussed in three areas: 47 per cent are into full or advanced deployment, 44 per cent focused on data analysis, and 43 per cent into data management. They aspire to achieve enhanced efficiency of systems, processes, operations and profitability.

The study also underscores the mounting pressure from the C suite. According to the report, 48 per cent of the companies reported that CEO and leadership teams were driving the deployment, while 39 per cent were driven by the board of directors. About 39 per cent of companies also revealed they have plans to allocate over 40 per cent of their IT budget to AI investments in the next four to five years.

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