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Decline in Polish Companies’ Readiness to Implement AI – Rising Pressure, Disappointing Returns on Investment

TECHNOLOGYDecline in Polish Companies' Readiness to Implement AI – Rising Pressure, Disappointing Returns on Investment

Polish companies’ readiness to adopt artificial intelligence (AI) has significantly declined. While 53% of companies allocate between 10% and 30% of their IT budgets to AI, the return on these investments still falls short of expectations. Furthermore, pressure is mounting — 37% of companies believe they have no more than a year to refine their AI strategies to avoid potential negative consequences in the near future.

Cisco has released the findings of the Cisco AI Readiness Index 2024. The report reveals a concerning outlook for Poland, showing a drop in AI readiness to just 2%, compared to 6% the previous year. Considering the rapid pace of AI development and its significant impact on business operations, these gaps in readiness are particularly alarming.

The index is based on a double-blind survey conducted in 30 countries among 8,000 experienced business leaders from organizations with 500 or more employees. The respondents are responsible for AI integration and deployment within their companies. AI readiness was assessed across six key areas: strategy, infrastructure, data, governance, human resources, and organizational culture.

Immediate Action Needed

AI has become a cornerstone of business strategy, and companies are feeling increasing pressure to implement it. In Poland, almost all organizations (99%) reported a rise in AI-related activities over the past year, primarily driven by CEOs and executive teams. Additionally, firms are investing substantial resources in AI, with more than 53% allocating between 10% and 30% of their IT budgets to AI.

Despite significant investments in key AI areas like cybersecurity, IT infrastructure, and data management, many companies find that returns on these investments do not meet expectations.

Key Findings from the Report

  1. Decline in Readiness Across All Areas, Especially Infrastructure:
    The most significant drop is in infrastructure readiness, with major gaps in computing power, data center network efficiency, and cybersecurity. Only 9% of organizations have adequate GPU processors to meet current and future AI demands, and just 14% possess end-to-end encryption, security audits, continuous monitoring, and rapid threat response capabilities for protecting AI models.
  2. Investments vs. Expectations:
    Over the past year, AI has become a key investment focus in three strategic areas:

    • Cybersecurity (40% of companies) have implemented AI at a full or advanced scale.
    • IT Infrastructure (29%)
    • Data Analytics (35%)

    Companies aim to enhance system efficiency, innovation, competitiveness, and provide better experiences for customers and partners. However, 35% of respondents reported seeing no benefits or results that fell short of expectations in supporting or automating processes and operations.

  3. Mounting Pressure for Success:
    Internal expectations for AI implementation are growing. Nearly 45% of companies report pressure from CEOs and executives, followed by boards of directors (40%). Companies are increasing efforts and investments to overcome barriers and embrace AI-driven transformation. Notably, 18% of organizations plan to allocate over 50% of their IT budgets to AI investments in the next four to five years, a significant increase from the 2% currently doing so.

Preparing for AI Implementation

Companies recognize the need to improve their readiness for AI adoption. Across Poland, 51% of firms identified enhancing the scalability, flexibility, and manageability of their IT infrastructure as a priority, indicating awareness of existing deficiencies and a willingness to address them.

Developing AI-Era Skills

Despite challenges in various areas, the lack of skilled employees remains a common issue. Companies cited this as the biggest challenge in infrastructure, data, and governance, emphasizing the need for professionals to lead AI initiatives.

Jeetu Patel, Chief Product Officer at Cisco, stated:
“Soon, there will be only two types of companies: those that build their operations around AI and those that become irrelevant. AI forces us to reconsider computing power needs, efficient connectivity within and between data centers, data management, security, and other key technology areas. Regardless of where organizations are in their AI journey, they must prepare existing data centers and cloud strategies for changing requirements and develop flexible, resilient AI implementation plans as their strategies evolve.”

Source: Manager Plus

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