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Most Canadian enterprise networks not ready for AI: Cisco report


With AI and IoT putting increasing pressure on network infrastructure, a major architectural shift is underway across enterprise networks in Canada, according to a new global study from Cisco.

Canadian data released from the study on Wednesday shows 93 per cent of Canadian IT leaders see modernized networks as critical to deploying AI, IoT and cloud, with 82 per cent saying they plan to increase the share of their overall IT budget allocated to networking.

As AI assistants, agents, and data-driven workloads create more latency-sensitive and complex network traffic, AI is also reshaping computing infrastructure — 76 per cent of Canadian IT leaders say their data centres can’t yet meet today’s AI demands, and 87 per cent plan to expand capacity on-premise, in the cloud, or both, according to Cisco’s report.

In addition, 98 per cent of Canadian IT leaders say autonomous, AI-powered networks are essential to future growth, however, only 38 per cent have deployed the intelligent capabilities — such as segmentation, visibility and control — to make their network adaptive, the report said.

Canadian IT leaders are looking to AI to grow revenue, with 54 per cent saying a modernized network’s greatest impact on revenue will come from deploying AI tools that automate and tailor customer journeys, enabling faster, more personalized experiences that can strengthen loyalty and drive growth.

Other findings from the report include 95 per cent of Canadian IT leaders say a resilient network is critical, at a time when 74 per cent faced major outages — driven largely by congestion, cyberattacks, and misconfigurations — adding up to $160 billion globally from just one severe disruption per business, per year.

In addition, 98 per cent of Canadian IT leaders say secure networking is important to their operations and growth, with 51 per cent saying it’s critical. Eighty-eight per cent say they believe an improved network will enhance their cybersecurity posture.

Cisco’s previous global research has found CEOs are aligned with IT leaders on the importance of infrastructure in the AI era. Ninety-seven per cent are expanding the use of AI, and 78 per cent rely on their CIO or CTO for investment decisions. As enterprise networks undergo a major architectural shift, the C-suite is backing their tech leaders to lead from the network, Cisco said.