Europe risks falling behind in AI race, Cisco warns

Fewer than one in five European IT leaders are prioritising artificial intelligence (AI) investment, a new Cisco report reveals. The analysis warns that years of underinvestment and outdated systems are threatening Europe’s competitiveness in the global AI race.

Cisco surveyed 8,000 senior IT and business leaders from 26 industries, including nearly 1,500 across France, Germany, Italy, the Netherlands, Poland, Spain, and Sweden. The findings show a widening gap between AI ambition and operational readiness in Europe.

While 45 per cent of respondents expect AI workloads to grow by over 30 per cent within three years, most lack the infrastructure to handle it. Only 23 per cent have sufficient graphics processing unit (GPU) capacity, and two-thirds struggle to centralise their data.

Cisco described this as an “AI infrastructure debt” — a modern version of technical debt, where delayed upgrades lead to inefficiency and higher costs. Many organisations still operate on fragmented data systems and inflexible networks, making it harder to deploy AI effectively.

Only nine per cent of respondents said their networks were adaptable enough for AI growth, while 36 per cent admitted their systems could not keep pace.

The report also raised concerns about cybersecurity. Just a third of respondents were highly aware of AI-related threats, and only one in four had integrated AI into their wider security systems.

Cisco concluded that Europe’s failure to prioritise AI risks long-term competitiveness, urging faster modernisation and strategic investment to close the gap with global leaders.