A stark divide is emerging in the corporate world's race to adopt artificial intelligence, with a new report revealing that a mere 13 percent of companies globally are fully prepared to integrate and leverage AI.[1][2][3][4] This elite group, dubbed 'Pacesetters' in the third annual Cisco AI Readiness Index, is not just slightly ahead; they are creating a significant performance chasm, leaving the vast majority of their rivals struggling with foundational issues.[5][4] The research, which surveyed over 8,000 business and IT leaders across 30 markets, paints a concerning picture of widespread unpreparedness despite a near-universal sense of urgency to implement AI technologies.[6][7][8][9] While 98 percent of companies report an increased urgency to deploy AI, the number of fully prepared organizations has actually dipped from 14 percent in the previous year, highlighting a growing gap between ambition and reality.[6][10][2][3]

The significant advantage held by the Pacesetters is demonstrated by their tangible results. These AI-ready organizations are four times more likely to move their AI projects from the pilot stage into full production and are 50 percent more likely to see measurable value from these initiatives.[5][11][4] This success is not accidental but the result of a disciplined, holistic approach. Pacesetters treat AI as a core component of their business strategy, with 99 percent having a formal AI roadmap, compared to just 58 percent of other companies.[4] This strategic foresight allows them to build the necessary foundations, from infrastructure to security, enabling them to scale AI applications quickly and effectively. Consequently, 90 percent of these leaders report tangible gains in profit, productivity, and innovation, a stark contrast to the roughly 60 percent of their peers who see similar benefits.[4]

For the 87 percent of organizations that are not fully prepared, the challenges are multifaceted and deeply embedded in their operational structures. A primary stumbling block is infrastructure, which is often not equipped to handle the demanding workloads of AI. The Cisco index found that only 21 percent of organizations possess the necessary GPU capacity to meet current and future AI demands.[6][2][3] Beyond raw computing power, networks themselves are a point of failure, with only 17 percent of organizations having networks flexible enough to handle the complexity of AI workloads.[12] This "AI infrastructure debt," as some experts term it, is the accumulation of small shortcuts and outdated systems that now threaten to slow progress, increase costs, and limit the long-term impact of AI investments.[11] Security is another major concern amplified by AI, with 70 percent of CEOs expressing increased worry about their network security in the new era.[13]

Data management and talent shortages represent two other critical hurdles for the unprepared majority. At its core, AI is fueled by data, yet the report reveals this is the weakest area of readiness for most companies.[12] A staggering 80 percent of companies report significant challenges with data existing in silos, which hampers the ability to use it effectively for AI.[6][10][3][14] Issues with pre-processing and cleaning data for AI projects are rampant, creating a fundamental barrier to success.[6][2] Compounding this is a significant human capital deficit. Only 31 percent of organizations feel they have the skilled talent required to fully leverage AI, with many citing a lack of in-house expertise as well as a shortage of available talent in the market.[6][1][2] This skills gap extends to governance, where 51 percent cite a shortage of professionals with expertise in AI ethics and law, and only 31 percent of companies have what they would describe as highly comprehensive AI policies.[6][1][2]

Ultimately, the disparity between the AI Pacesetters and the rest of the pack underscores a critical lesson for the industry: successful AI adoption is not about piecemeal projects but about comprehensive organizational readiness. The report highlights a decline in cultural readiness, with board receptiveness to AI dropping from 82 percent to 66 percent in a year, and 30 percent of organizations reporting employee resistance to adopting AI.[6][10][1] The Pacesetters have demonstrated that winning with AI requires a synchronized effort across strategy, infrastructure, data, talent, governance, and culture. As more than 80 percent of organizations plan to deploy AI agents in the near future, the findings serve as a clear warning.[11][4] Companies that fail to address their foundational weaknesses in AI readiness will not only struggle to generate value from their investments but risk becoming competitively irrelevant in an increasingly AI-driven landscape.