Industrial AI Shifts to Physical Operations, Scalability Determined by Readiness Level

[Cengiz Özemli]

According to Cisco's latest industrial artificial intelligence (AI) research report, two-thirds of industrial organizations have transitioned to active AI deployments in their live operational environments. AI deployments are rapidly increasing in critical infrastructure systems such as factories, energy, and transportation.

### The Role of Industrial AI in Live Operations
The report indicates that 61% of participants are using AI in operations with physical outcomes such as performance, reliability, and safety. 20% are implementing AI in a scaled and mature form. In the manufacturing, logistics, and energy sectors, AI applications support machine vision, robotics, mobility, and safety-critical operations. Approximately 83% plan to increase their AI spending, and 87% expect significant results within the next 2 years.

### Importance of Preparedness Level in Scaling
With the widespread adoption of AI in live environments, network infrastructure, cybersecurity, and IT/OT collaborations have become critical factors in AI's scalability.

• Network infrastructure readiness is a fundamental requirement for integrating AI into machines and sensors.
• 97% believe that AI workloads will impact the needs of their industrial networks.
• 51% anticipate that AI will improve network connectivity and reliability.
• 96% state that wireless networks are indispensable for AI.

### Cybersecurity and IT/OT Collaboration
Cybersecurity shapes the adoption rate and reliability of AI. With the increasing connectivity of AI, security is seen as the biggest barrier to scaling. However, the majority believe that AI will improve cybersecurity:

• 98% consider cybersecurity fundamental for AI.
• 40% identify cybersecurity as the biggest obstacle to scaling.
• 85% expect AI to improve their cybersecurity posture.

Close collaboration between IT and operations teams is critical for the successful implementation of AI. A strong infrastructure, stable networks, and security requirements are prominent in AI scaling.

• 57% reported some level of IT/OT collaboration.
• 43% indicated limited or no collaboration.
• Among those with weak collaboration, 47% cited network problems as a primary issue in AI scaling.

### About Cisco and Industrial AI Research
The report is based on the results of a double-blind global survey involving over 1,000 OT decision-makers from 19 countries and 21 sectors. Participants included manufacturing, logistics, energy, and many other sectors. Cisco is a leading technology company in AI-powered industrial solutions, providing secure connectivity solutions for over 40 years.