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Cisco State of Industrial AI Report: AI Moves to Live Operations


Cisco State of Industrial AI Report: AI Moves to Live Operations
  • by: PR Newswire
  • |
  • April 8, 2026

Cisco  today announced the release of its latest annual industrial research report, the State of Industrial AI Report, examining how critical infrastructure like factories, utilities, and transportation systems are accelerating their direct deployments of AI. The report provides a data-driven view into how industrial organizations are adopting AI, the challenges they face as AI moves into live operations, and the opportunities created as AI becomes embedded in physical systems, infrastructure, and workflows.

Quick Intel

  • Cisco’s State of Industrial AI Report shows AI shifting from experimentation to live production in industrial environments.
  • 61% of organizations now deploy AI in live operations where performance, reliability, and security have direct physical consequences.
  • 20% report scaled, mature AI deployments across manufacturing, transportation, and utilities.
  • 83% plan to increase AI spending, with 87% expecting meaningful outcomes within the next two years.
  • Infrastructure readiness, cybersecurity, and IT/OT collaboration emerge as the primary determinants of successful AI scaling.
  • 97% expect AI workloads to impact industrial network requirements, while 96% say wireless networking is essential for AI.

The double-blind global study surveyed more than 1,000 operational technology (OT) decision-makers across 19 countries and 21 industrial sectors. The findings show that AI is now delivering measurable operational benefits in use cases such as process automation, automated quality inspection, predictive maintenance, logistics, and energy forecasting. However, many organizations are increasingly constrained by readiness gaps in networking infrastructure, cybersecurity, and IT/OT operating models as AI shifts into real-time, production-grade use in physical environments.

"Industrial AI is moving from experimentation into production, where AI systems sense, reason, and act in the real world," said Vikas Butaney, SVP/GM of Secure Routing and Industrial IoT at Cisco. "At this stage, success is no longer determined by models alone, but by whether networks, security, and teams are ready to support AI at the edge, in motion, and at scale. The research shows that organizations confident in scaling AI are those treating infrastructure, cybersecurity, and IT/OT collaboration as foundational, not optional."

Key Takeaways from the State of Industrial AI Report

Infrastructure readiness is emerging as a primary determinant of scale. As AI becomes embedded in machines, sensors, vision systems, and autonomous operations, organizations face rising demands for reliable connectivity, wireless mobility, predictable latency, edge compute, and power.

  • 97% expect AI workloads to impact their industrial network requirements.
  • 51% of organizations expect AI workloads to increase connectivity and reliability requirements in their industrial networks.
  • 96% say wireless networking is essential to enabling AI.

Cybersecurity is shaping both the pace and confidence of AI adoption. As AI expands connectivity and data flows across industrial environments, security remains the top barrier to scale. At the same time, organizations increasingly view AI as part of the solution.

  • 98% say cybersecurity is foundational for AI-ready infrastructure.
  • 40% cite cybersecurity as the biggest obstacle to scaling AI.
  • 85% expect AI to improve their cybersecurity posture.

IT/OT collaboration is proving critical to operationalizing AI at scale. Organizations with closer collaboration between IT and operational teams report greater confidence in expanding AI, more stable networks, and stronger emphasis on cybersecurity.

  • 57% report some level of IT/OT collaboration.
  • 43% report limited or no collaboration.
  • 47% of organizations with limited IT/OT collaboration cite network instability as a top operational challenge to scale AI.

The State of Industrial AI Report is based on data from a global survey of more than 1,000 operational technology decision-makers, conducted by Cisco in association with Sapio Research. Survey respondents were from 19 countries and across 21 industry sectors, representing industries including manufacturing, transportation/logistics, energy/utilities and more. The report aggregates findings from decision-makers at companies with annual revenues of more than $100 million.

 

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

  • Industrial AIDigital TransformationCybersecurity
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