Cisco releases AI Readiness Index: What is the current status of AI readiness among Chinese companies?

In 2023 , AIGC has created a huge wave in the field of science and technology, and almost all companies are talking about "AIGC".

So, what is the current status of AI applications in enterprises?

How many organizations are preparing to deploy and leverage AI? And to what extent?

How big can the differences be between companies?

…

Recently, Cisco released its first "AI Readiness Index" report, which surveyed more than 8,000 global companies, focusing on the current status of companies in utilizing and deploying artificial intelligence, showing significant gaps in key business pillars and infrastructure, and the serious risks that may arise.

Current state: There is a huge gap in enterprise AI readiness

The Cisco AI Readiness Index assesses respondents’ AI readiness across six key business pillars: strategy, infrastructure, data, talent, governance, and culture.

Overall, only 9% of Chinese companies are fully prepared to deploy and utilize AI, while more than half of them said that if they do not take action in the next 12 months, their business development will be seriously affected. This urgency is prevalent among respondents, with 98% of Chinese companies saying that the urgency of deploying AI technology has increased in the past six months.

Specifically, many companies have already started to take action in formulating strategies. 82% of companies are considered "frontrunners" or "chasers", and only 1% are "laggards". The good news is that 95% of companies have formulated or are formulating highly clear AI strategies.

In terms of infrastructure, 95% of enterprises worldwide realize that AI will increase infrastructure workloads, but in China, only 40% of enterprises believe that their infrastructure is highly scalable. More than half (52%) of enterprises believe that their existing IT infrastructure has moderate or limited scalability in the face of new AI challenges. In order to adapt to the growing power and computing power requirements of AI, nearly two-thirds (67%) of enterprises will need more data center graphics processors (GPUs) to support current and future AI workloads.

In terms of data, the area where companies are least prepared, 86% of respondents believe that there is a certain degree of isolated or fragmented data in their companies, which will be a serious challenge in the application of artificial intelligence technology.

In terms of talent readiness, the report shows that boards and leadership teams are most likely to accept the changes brought about by artificial intelligence, with 89% and 90% of respondents showing high or moderate acceptance, respectively. More than a third (36%) of companies said that employees are reluctant to adopt or even resist artificial intelligence. The demand for artificial intelligence skills shows a new era of digital divide.

In terms of governance, AI policy regulation has been slow to get off to a good start. Only 21% of respondents said they have a highly comprehensive AI policy in place, and companies must consider and manage all factors that could pose a risk of eroding confidence and trust, which is an urgent issue that needs to be addressed.

Finally, in terms of culture, the survey shows that companies are not yet fully prepared, mainly because 10% of companies have not yet developed a change management plan, and among those that have developed a plan, 81% are still in progress. But the good news is that there is a very positive acceptance of artificial intelligence within the company. Three quarters (78%) said that their company is embracing artificial intelligence with a moderate to high sense of urgency.

Outlook: How can companies improve their AI readiness?

Bu Xianlu, Vice President of Cisco Greater China and General Manager of Security Business Unit, said that in the survey, it was found that there was a very clear consensus among enterprises, that is, the time window for everyone to make up for the readiness of artificial intelligence is next year. In 2023 , AIGC is still a relatively new concept, and everyone is very excited to pay attention to the progress and think about the response strategy. And 2024 will be the year for specific implementation and execution.

Bu Xianlu, Vice President of Cisco Greater China and General Manager of Security Business Unit

For enterprises, finding application scenarios for AIGC and converting it into productivity can either improve efficiency or increase revenue and market share. Bu Xianlu introduced that from the current feedback, enterprises are more concerned about improving efficiency. Because enterprises realize that it is not just themselves who are considering artificial intelligence, but everyone is considering it, "therefore, the increase in revenue and market share depends on who runs faster and more solidly in this race."

So how can companies seize the time to improve their AI readiness? Cisco's advice is:

1. Focus on the long term and look to the future: In the short term, people tend to overestimate the impact of emerging technologies, but in the medium and long term, they tend to underestimate their impact. Facing the technological wave triggered by generative AI, companies need to calm down and find its true value, develop medium- and long-term development strategies, and implement them in a down-to-earth manner.
2. Building infrastructure for the future: Infrastructure includes computing power, GPU, and corresponding networks. While computing power has been greatly improved, the requirements for networks have also been further improved, requiring not only high speed, but also low latency and anti-jitter. Therefore, many infrastructures need to be improved simultaneously.
3. Breaking down data silos: Although most companies believe they have enough data, they are generally concerned about data silos caused by data being distributed in different application systems. Breaking down data silos can maximize the value of data.
4. People-oriented: The interviewed companies generally believe that they lack AI talent and should strengthen AI skills training for existing employees in the future.
5. Formulate internal policies and agreements in a timely manner and keep them consistent with the industry: In actual product development and every aspect of employees' use of AI, there should be corresponding specific assessment indicators, usage processes, and reward and punishment measures.

"In China, the application of artificial intelligence has penetrated into all aspects of people's daily work and life. All companies must pay close attention to potential security, compliance, ethical and other risks when introducing artificial intelligence." As one of the world's leading information technology and network solution providers, Bu Xianlu said that with its unique advantages in data, Cisco will continue to improve the integrity and capabilities of Cisco's solutions in the fields of AI and security, and help customers be fully prepared for artificial intelligence under the framework of 'responsible AI' .