A new study from Cisco reveals a critical challenge facing North American CEOs: while 96% plan to integrate artificial intelligence (AI) into their operations, nearly half (49%) believe their limited understanding of AI could negatively impact their business growth over the next five years.
AI Ambitions Meet Knowledge Barriers
The research highlights a paradox in executive leadership. Although four out of five CEOs recognize AI’s potential, many fear their knowledge gaps could hinder decision-making (68%) and leave them vulnerable to competitors (67%). These concerns are already materializing, as 45% of CEOs worry that insufficient technology investment is eroding their competitive edge, and 58% recognize the opportunity costs of not embracing AI-driven innovations.
“In a dynamic landscape where competition is fierce, speed decides the winners. Leaders who act decisively today to build resilient, future-proofed networks will be the AI-forward leaders driving real value for their business,” said Jeetu Patel, Cisco’s Chief Product Officer. “Eventually, there will be only two kinds of companies: those that are AI companies, and those that are irrelevant.”
The Cost of Falling Behind
Beyond strategic concerns, infrastructure challenges are another major obstacle. More than 70% of CEOs report that outdated network infrastructure limits their ability to seize business opportunities. As AI adoption accelerates, the risks of inaction grow, with CEOs anticipating higher operational costs, lower productivity, and shrinking market share if they do not act now.
However, proactive leaders see AI as more than a tool for efficiency—it’s a competitive differentiator. According to the study, CEOs aim to harness AI to drive efficiency (70%), foster innovation (66%), and outpace rivals (57%). To achieve these goals, they must overcome three primary barriers: skills shortages, infrastructure gaps, and security risks.
Investing in People, Infrastructure, and Cybersecurity
To navigate AI’s complexities, CEOs are doubling down on investments in workforce development, modernizing IT infrastructure, and fortifying cybersecurity. This strategy reflects the growing role of technology leaders in shaping business strategies, with over 80% of CEOs recognizing the importance of their CIOs and CTOs in guiding AI-driven transformations.
“Leaders are eager to scale AI, but they’re running into skill shortages, bandwidth limits, energy constraints, and security risks,” said Raj Juneja, President of Cisco Canada. “No one can solve these in silos. Businesses, partners, and technology must come together to drive the future of AI. That’s why 96% of North American CEOs are turning to trusted partners to future-proof their infrastructure and stay ahead.”
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