On October 14, 2025, Cisco Systems Inc. (NASDAQ: CSCO), a leader in networking and security, published the findings from its third annual *Cisco AI Readiness Index*. The report reveals that a select group of companies, termed 'Pacesetters,' are consistently outperforming their peers in leveraging artificial intelligence (AI) for business value. This cohort, comprising roughly 13% of the surveyed organizations, has shown a significant edge across various metrics related to AI deployment.

2. Pacesetters: The New Vanguard in AI Readiness

The data gathered from over 8,000 AI leaders across 30 markets and 26 industries illustrates a clear distinction between the Pacesetters and their competitors. These leaders adopt a disciplined approach that merges strategic foresight with robust infrastructure, enabling them to adapt to the rapid evolution of AI technologies.

Key Findings About the Pacesetters

Integrated AI Strategy: An overwhelming 99% of Pacesetters maintain a defined AI roadmap, contrasting sharply with only 58% of their counterparts. Moreover, 91% are equipped with a change-management plan, compared to just 35% overall.

Infrastructure Preparedness: A striking 71% of Pacesetters report having networks that can flexibly scale to accommodate AI projects, in stark contrast to the mere 15% of the overall survey population. Furthermore, 77% are planning to enhance their data-center capacities within the next year.

Innovation in Action: About 62% of Pacesetters have established a mature process for generating and scaling AI use cases, compared to just 13% of other organizations. Additionally, 77% have already finalized their use cases, a notable increase from the 18% among peers.

Performance Tracking: A remarkable 95% of Pacesetters track the impact of their AI investments, which is three times higher than other surveyed companies. Of these, 71% express confidence in their ability to generate new revenue streams from AI, more than double the overall average.

Security Awareness: Pacesetters exhibit a heightened awareness of AI-specific threats, with 87% recognizing these risks compared to only 42% of other firms. They also integrate AI into their security systems, with 62% doing so, versus 29% for their competitors.

3. The Challenge of AI Agents

Despite the enthusiasm for AI deployment, the report highlights a disconnect between ambition and readiness. While 83% of organizations plan to implement AI agents, nearly 40% anticipate these agents working alongside employees within a year. However, many organizations are grappling with foundational weaknesses that hinder their ability to support such advanced systems. A concerning 54% of respondents indicated that their networks lack the scalability required for the complexity and volume of data that AI agents demand.

4. The Emergence of AI Infrastructure Debt

A critical concept introduced in this year's report is AI Infrastructure Debt—a term that reflects the cumulative impact of technical compromises and deferred upgrades that can degrade the long-term value of AI initiatives. Early signs of this debt are evident, with 62% of organizations predicting a workload increase of over 30% in the next three years. Additionally, 64% of respondents struggle to centralize their data, and only 26% possess robust GPU capacity, which is essential for AI operations.

5. Conclusion: Value Follows Readiness

As organizations face the demands of an AI-driven future, Cisco's 2025 AI Readiness Index underscores a fundamental truth: the most AI-ready organizations are the ones that will lead the charge in creating value. By investing in the right infrastructure and adopting comprehensive strategies, Pacesetters are not only outpacing their peers but also setting the benchmarks for success in the ever-evolving landscape of AI.

Cisco continues to position itself at the forefront of this transformation, enabling organizations to navigate the complexities of AI while fostering a secure and resilient digital environment.

Original press release