AI Readiness Index: Cisco’s Insights into Pacesetter Companies

Cisco’s third annual AI Readiness Index highlights that the leading AI-prepared firms, referred to as “Pacesetters,” are three times more likely to advance pilot projects into full production, and have a 72 percent higher chance of realising significant value from their AI investments.

The research involved a survey of over 8,000 AI leaders from 30 markets across 26 industries, revealing that only 17 percent of organisations in India and 13 percent worldwide qualify as Pacesetters. These companies exhibit a strategic and disciplined methodology, integrating robust infrastructure, data readiness, and a proactive AI roadmap.

AI Evolution: From Chatbots to Autonomous Agents

Jeetu Patel, Cisco’s President and Chief Product Officer, noted the transition from basic chatbots to advanced AI agents capable of executing tasks independently. He indicated that the current study finds over 80 percent of firms emphasising agentic solutions, with two out of three affirming that these systems are already meeting or surpassing their performance targets. This displays a notable competitive edge, as companies more advanced in AI usage witness significantly higher returns compared to their counterparts.

Pacesetter Strategies and Network Design

The report states that 98 percent of Pacesetters are developing their networks to support AI scalability, in contrast to only 59 percent in India. Almost all Pacesetters (99 percent) have a clear AI roadmap, and 91 percent have implemented a detailed change-management strategy.

The findings emphasise that Pacesetters place AI at the core of their business strategies rather than simply experimenting with it. Additionally, these leaders are making substantial investments in infrastructure, with 77 percent planning to expand their data-centre capacities within the next year. Crucially, 95 percent of these organisations monitor the effects of their AI initiatives, and 71 percent express confidence that their AI use cases will create new revenue opportunities.

The Rise of AI Agents in India

Cisco’s report also examines the growth of AI agents, indicating that 91 percent of Indian companies intend to implement them shortly, with 41 percent expecting to incorporate them into their workforce within a year. Nevertheless, many of these organisations still lack the secure infrastructure necessary for supporting autonomous, learning AI systems.

Understanding AI Infrastructure Debt

The study introduces the concept of AI Infrastructure Debt, which refers to the accumulation of underfunded systems and postponed upgrades that could diminish the long-term value of AI. Cisco cautions that failing to address this issue may leave numerous companies at a disadvantage as workloads increase and data centralisation becomes more challenging.