Cisco just released its third annual Cisco AI Readiness Index*, showing that about 7% of organizations surveyed in the European Union (EU) —and 13% globally— outperform their peers across every measure of AI value. This year’s report reveals early signs of disruption to value: rising AI workloads, insufficient GPU capacity, and a lack of centralized data, among others.
AI infrastructure debt: the emerging drag on value
The report introduces the concept of AI infrastructure debt, the modern evolution of technical and digital debt that once held back digital transformation. It’s the silent accumulation of compromises, deferred upgrades, and underfunded architecture that erodes the value of AI over time.
Some early warning signs are already visible: in the surveyed EU countries, 45% expect workloads to rise by over 30% within three years, 66% struggle to centralize data, only 23% have robust GPU capacity, and 21% can detect or prevent AI-specific threats. Over a third (36%) of EU respondents say their networks can’t scale for complexity or data volume, and just 9% describe their networks as flexible or adaptable.
These early warning signs point to a gap between AI ambition and operational readiness. The companies that are most ready show a sustained advantage across the board, indicating a new form of resilience: a disciplined, system approach that balances strategic drivers with the data and infrastructure needed to keep pace with AI’s accelerating evolution. They’re already architecting for the future with 98% designing their networks for the growth, scale and complexity of AI, compared to 32% in the seven EU countries surveyed.
The combination of foresight and foundation is delivering real, tangible results at a time when two major forces are starting to reshape the landscape: AI agents, which raise the bar for scale, security, and governance; and AI infrastructure debt, the early warning signs of hidden bottlenecks that threaten to erode long-term value.
The AI Readiness Index pinpoints some of the same critical gaps identified by the EU’s Apply AI Strategy, and makes it clear that organizations taking a disciplined, early approach to AI are already reaping measurable rewards. Readiness is the true differentiator; those who invest in robust infrastructure and proactive strategies are positioning themselves to capture the full value of AI, both now and as demands accelerate. The upcoming EU Cloud and AI Development Act is an opportunity to empower Europe to build the strong infrastructure foundations needed for scalable AI innovation.
Cisco’s research outlines a consistent pattern among AI leaders delivering real returns.
- AI should be part of the business, not a side project
Nearly half (48%) of EU survey respondents say they have a defined AI roadmap, and 27% have a change-management plan. For pacesetters globally, budgets match intent, with 79% making AI the top investment priority. But this number drastically falls to 18% overall in the EU, with 34% having short- and long-term funding strategies. - Building infrastructure that’s ready to grow
71% of pacesetters globally say their networks are fully flexible and can scale instantly for any AI project, showing a major gap with the surveyed EU countries (9% overall). In the EU, 39% of respondents say they plan on investing in new data-center capacity within the next 12 months. - Moving pilots into production
In the EU, only 8% of respondents have a mature, repeatable innovation process for generating and scaling AI use cases, and 11% have already finalized those use cases. - Turning security into strength
Only 34% of all EU respondents are highly aware of AI-specific threats, a fourth (24%) integrate AI into their security and identity systems, and 35% are fully equipped to control and secure AI agents.
Pacesetters achieve more widespread results than their peers because of their approach: 90% report gains in profitability, productivity, and innovation, compared with 57% overall across the EU.
*About the Cisco AI Readiness Index 2025
The Cisco AI Readiness Index 2025 is a global study, now in its third year, based on a double-blind survey of 8,000 senior IT and business leaders responsible for AI strategy at organizations with over 500 employees across 26 industries. The survey included close to 1,500 respondents from seven EU countries (France, Germany, Italy, Netherlands, Poland, Spain, Sweden).
