CEOs Embrace AI but Face Knowledge Gaps: Cisco Study Reveals Challenges and Opportunities

Cisco Study: CEOs Embrace AI, But Knowledge Gaps Threaten Strategic Decisions and Growth

97% of CEOs plan AI integration, but only 1.7% feel fully prepared. 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% fear losing ground due to gaps in IT knowledge or network infrastructure, with more than half already seeing competitive losses from underinvestment in technology. 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. A new study from Cisco, the worldwide leader in networking and security, reveals a paradox among 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 (74%) and stifle growth (58%) - risking missed opportunities and falling behind competitors. Yet, CEOs are not standing still. With support from their IT leaders and trusted partners, they plan to 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 more than 70% of CEOs 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. Over half of CEOs (53%) worry that a lack of investment in technology is costing them competitive advantage, while two-thirds 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 (69%), spurring innovation (68%), and outpacing competitors (54%). 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 including 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 CEOs who recognize AI's potential benefits must support bold experimentation in the short term to uncover value in the long term. Oliver Tuszik, President of Cisco EMEA, highlights the opportunity: "Whole businesses will be revolutionized if they can unlock AI's potential to innovate faster, simplify their operations, and withstand digital disruptions. But no one can do it alone. That's why 96% of CEOs are leaning on trusted partners to make the leap." 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 organisation and through trusted partnerships. CEOs are increasingly looking to their CTOs and CIOs, with nearly 80% recognising 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 2,503 CEOs from companies with 250+ employees worldwide. 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 and secure networks 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.

Most CEOs plan to integrate AI into their operations: Cisco Study

Nearly 80% of global CEOs recognize the benefits of AI, but concerns remain about knowledge gaps affecting decisions and growth, according to Cisco Systems. The research reveals over 70% of CEOs worry about losing competitive ground due to IT and infrastructure deficiencies, underscoring the need for robust technology investment.Four out of five chief executives around the globe recognise the potential benefits of artificial intelligence (AI) and plan to integrate it into their operations, according to a study by Cisco Systems, but many fear that gaps in their knowledge could hinder decisions and stifle growth. Some 74% of the CEOs who participated in the survey by Cisco, a networking and security player, said they fear that gaps in their knowledge could hinder decisions while 58% said the problem could stifle growth. "With support from their IT leaders and trusted partners, they plan to empower their people, modernise infrastructure, and strengthen cybersecurity to sharpen their competitive edge in an AI-driven future," said the report, which Cisco has shared with ET. Jeetu Patel, chief product officer, Cisco, said, "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." Cisco's research shows more than 70% of CEOs are concerned about losing ground to competitors and missing out on opportunities because of IT and infrastructure gaps. More than 50% of the CEOs who participated in the survey said they worry that a lack of investment in technology is costing them competitive advantage, while two-thirds expressed concern about the opportunity costs of not investing more in technology, according to the report. "While CEOs focus on the bigger picture, their CIOs and CTOs are often grappling with operational hurdles including the lack of compelling business use cases," according to the findings.

Cisco Study: CEOs Embrace AI, But Knowledge Gaps Threaten Strategic Decisions and Growth

97% of CEOs plan AI integration, but only 1.7% feel fully prepared. New research highlights what's getting in the way of progress - and how CEOs plan to shift ambition into action. News summary: AMSTERDAM, Feb. 10, 2025 /PRNewswire/ -- CISCO LIVE -- A new study from Cisco, the worldwide leader in networking and security, reveals a paradox among 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 (74%) and stifle growth (58%) - risking missed opportunities and falling behind competitors. Yet, CEOs are not standing still. With support from their IT leaders and trusted partners, they plan to 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 more than 70% of CEOs 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. Over half of CEOs (53%) worry that a lack of investment in technology is costing them competitive advantage, while two-thirds 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 (69%), spurring innovation (68%), and outpacing competitors (54%). 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 including 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 CEOs who recognize AI's potential benefits must support bold experimentation in the short term to uncover value in the long term. Oliver Tuszik, President of Cisco EMEA, highlights the opportunity: "Whole businesses will be revolutionized if they can unlock AI's potential to innovate faster, simplify their operations, and withstand digital disruptions. But no one can do it alone. That's why 96% of CEOs are leaning on trusted partners to make the leap." 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 organisation and through trusted partnerships. CEOs are increasingly looking to their CTOs and CIOs, with nearly 80% recognising 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 2,503 CEOs from companies with 250+ employees worldwide. 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: 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. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company. View original content to download multimedia:https://www.prnewswire.com/news-releases/cisco-study-ceos-embrace-ai-but-knowledge-gaps-threaten-strategic-decisions-and-growth-302371940.html

CEOs Embrace AI, But Knowledge Gaps Threaten Growth, Finds New Cisco Research

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." Cisco's research shows more than 70% of CEOs 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. Over half of CEOs (53%) worry that a lack of investment in technology is costing them competitive advantage, while two-thirds 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.

97% of CEOs Plan to Adopt AI, But Only 2% Ready: Cisco Study

While most CEOs understand that AI integration is necessary, many feel that their gaps in understanding the technology are hindering growth opportunities. Cisco, one of the world's leading networking and security companies, released a study on Monday detailing the fears, ambitions, and actions of CEOs regarding AI. The report revealed that "97% of CEOs plan to adapt and incorporate AI into their business, but only 2% feel ready for AI". The report surveyed more than 2,500 CEOs over 25 years of age, representing over 250 companies in Europe, North America, South America, Africa, and Asia-Pacific (APAC). While most CEOs understand that AI integration is necessary, many feel that their gaps in understanding the technology are hindering growth opportunities. The study revealed that over 70% of CEOs believe that their understanding of AI hinders their ability to ask "critical questions" in the boardroom. Moreover, 58% of them "believe their understanding of AI will have a negative impact on the growth of their business over the next five years". These CEOs also highlighted multiple other factors that hold them back from integrating AI into their businesses, including concerns about infrastructure and budget limitations, security concerns, skill gaps, and so on. About 28% of the respondents feel the potential benefits of AI have been exaggerated. While 10% of respondents revealed having no concerns about AI, only 2% said they "feel everything is in place" and are ready to integrate it. Underscoring the urgency to act, Cisco's executive vice president and chief product officer, Jeetu Patel, said in a statement, "Eventually, there will be only two kinds of companies: those that are AI companies and those that are irrelevant." Similarly, a majority of CEOs in the report revealed their concerns about losing their competitive edge due to infrastructure gaps and lack of investment in new technologies. Last year, a report from Menlo Ventures revealed that AI spending in enterprises saw a sixfold increase from 2023, from $2.3 billion to $13.8 billion. The report also revealed that organisations had outlined 10 potential AI use cases, and 24% of them are prioritised for implementation in the near term. Menlo surveyed 600 US enterprise IT decision-makers for the report. Organisations use generative AI in their stack to generate code, support chatbots, perform enterprise searches and more. The report also revealed that 47% of solutions in organisations are built in-house, while 53% are sourced from vendors. That said, it was also revealed that organisations are not just giving into the hype but also focusing on return on investments. "Buyers are playing the long game. They are far more focused on tools that can deliver measurable value (30%) and that understand the unique context of their work (26%) over those offering the lowest price tag (1%)," the report read.