Decline in AI Readiness: Only 18% of Companies Fully Prepared, According to Cisco Report

By: Bhumika

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Updated on: 14-Nov-2024

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As artificial intelligence (AI) continues to revolutionize industries globally, a new report from Cisco highlights a concerning trend regarding AI readiness among Indian companies. According to the 2024 AI Readiness Index, only 18% of companies in India are fully equipped to deploy and utilize AI-powered technologies. This marks a decline from 20% the previous year, signaling a troubling trend in the corporate landscape.

The findings are based on a comprehensive survey conducted by Cisco, which involved 3,660 senior business leaders from companies with over 500 employees across 14 markets in the Asia-Pacific, Japan, and China (APJC) region. These leaders, responsible for AI integration within their organizations, provided insights into the challenges and gaps in readiness for AI adoption.

Key Insights from the Cisco Report

Cisco's Dave West, president of APJC, emphasized the importance of a holistic approach to AI implementation. He noted, “As companies accelerate their AI journeys, they must adopt a comprehensive approach to implementation and connect the dots to link AI ambition with readiness.” The report underscores that while many organizations are eager to adopt AI, they face significant hurdles in effectively leveraging its capabilities.

The Declining Readiness Gap

The decline in AI readiness is particularly alarming given the rapid evolution of the market and the increasing influence of AI on business operations. Companies are finding it challenging to navigate the complexities of AI deployment, which encompasses various elements such as strategy, infrastructure, data management, governance, talent acquisition, and corporate culture.

Cisco's AI Readiness Index is measured across six key pillars:

• Strategy: The alignment of AI initiatives with business objectives.
• Infrastructure: The technological foundation required for AI operations.
• Data: The quality and management of data used for AI.
• Governance: Policies and frameworks that guide AI usage.
• Talent: The availability of skilled professionals to manage AI systems.
• Culture: The organizational mindset towards embracing AI technologies.

Infrastructure Challenges

The report highlights infrastructure as a major pain point for companies aiming to implement AI. Only 21% of organizations have the necessary graphics processing units (GPUs) to meet the demands of current and future AI workloads. This shortfall indicates a significant gap in the technological capabilities needed to support advanced AI applications.

Additionally, only 36% of companies can ensure data protection within AI models. This involves critical components such as end-to-end encryption, regular security audits, continuous monitoring, and swift threat response mechanisms. The lack of robust data security measures raises concerns about the integrity and safety of AI implementations.

Investment Trends in AI

Despite the challenges, many companies are actively investing in AI technologies. The report indicates that 47% of organizations are focused on the full or advanced deployment of AI, while 44% are prioritizing data analysis and 43% are investing in data management. The goal of these investments is to enhance operational efficiency, streamline processes, and ultimately drive profitability.

The pressure to adopt AI is also intensifying from the top management levels. The report reveals that 48% of companies are seeing their CEO and leadership teams spearheading AI deployment initiatives, while 39% are influenced by their boards of directors. This heightened focus on AI is further reflected in future budget allocations, with 39% of companies planning to dedicate over 40% of their IT budgets to AI investments within the next four to five years.

Conclusion

The findings of the Cisco 2024 AI Readiness Index paint a mixed picture of AI adoption in India. While there is a clear recognition of the potential benefits of AI, the decline in readiness suggests that many organizations are struggling to keep pace with the necessary preparations for effective implementation. As companies strive to harness the full power of AI, addressing the gaps in infrastructure, governance, and talent will be essential to ensure successful integration and long-term success in the rapidly evolving digital landscape.