Cisco’s latest AI Readiness Index finds that a small group of companies surveyed, the “Pacesetters”, outperform their peers across every measure of AI value. The data shows these companies are four times more likely to have finalised their AI use cases and three time more likely to track and measure the impact of their AI investments. The report also introduces the concept AI Infrastructure Debt – the modern evolution of technical and digital debt that has held back previous transformation efforts. It highlights that while Pacesetters aren’t immune to AI Infrastructure Debt, with strong governance, financial foresight and cross-functional coordination, they have the resilience to help address it before it compounds into costlier risks. With 82% of organisations feeling the urgency to deliver a return on AI, the report outlines how these ‘Pacesetters’ are adopting a realistic approach to AI readiness resulting in gains in profitability, productivity and innovation.