AI is Driving a Major Infrastructure Change: Research shows 97% of IT leaders in the UAE Plan to Boost Networking Budget Share

Ahead of Cisco’s flagship Event for the Gulf region “Cisco Connect” for customers and partners, the company today released the UAE findings of its global networking study revealing a major architectural shift underway across enterprise networks. As AI assistants, agents, and data-driven workloads reshape how work gets done, they’re creating faster, more dynamic, more latency-sensitive, and more complex network traffic.

Combined with the ubiquity of connected devices, 24/7 uptime demands, and intensifying security threats, these shifts are driving infrastructure to adapt and evolve. The result: IT leaders are changing how they think about the network: what it is, what it enables, and how it protects the organization. The network they build today will decide the business they become tomorrow.

Six signals that an architectural shift is underway:

1. The network has become a strategic priority: 98% say a modernized network is critical to rolling out AI, IoT, and cloud. 97% of IT leaders plan to increase the share of their overall IT budget allocated to networking.

2. Secure networking is mission critical: 99% say secure networking is important to their operations and growth; 68% say it’s critical. 97% believe an improved network will enhance their cybersecurity posture.

3. AI intensifies demand for resilient networks: 99% say a resilient network is critical, at a time when 78% faced major outages – driven largely by congestion, cyberattacks, and misconfigurations – adding up to $160B globally from just one severe disruption per business, per year.

4. Leaders look to AI to grow revenue: 55% say a modernized network’s greatest impact on revenue will come from deploying AI tools that automate and tailor customer journeys – enabling faster, more personalized experiences that can strengthen loyalty and drive growth.

5. AI is reshaping computing infrastructure: 67% say their data centres can’t yet meet today’s AI demands, and 92% plan to expand capacity – on-prem, in the cloud, or both.

6. Leaders want to make networks smarter: 99% say autonomous, AI-powered networks are essential to future growth – yet only 47% have deployed the intelligent capabilities – like segmentation, visibility, and control – to make their network adaptive.

Abdelilah Nejjari, the Managing Director for the Gulf and Levant at Cisco, commented: “Our networking research clearly demonstrates that modernizing networks is no longer just an IT issue – it’s a strategic imperative for organizations aiming to thrive in the AI era. Networks are the backbone of digital transformation, enabling seamless connectivity, and empowering businesses to adapt, scale, and thrive in an ever-evolving digital landscape.” He added: “The ongoing AI infrastructure buildout in the Middle East presents a unique opportunity for organizations to leverage advanced networking capabilities that can support AI and drive innovation. Cisco is committed to building resilient, intelligent networks that not only meet the increasing demands of AI-driven workloads but also secure and future-proof organizations against evolving cyber threats.”

The Network is the Value: Modern Infrastructure Unlocking Growth and Savings

IT leaders are already delivering financial value from today’s networks – largely by improving customer experiences (59%), boosting efficiency (57%), and enabling innovation (56%). But much of that value is at risk if it comes from infrastructure that hasn’t been designed for AI or real-time scale. To unlock the full growth and savings they expect, leaders have identified critical gaps they must close: siloed or partially integrated systems (64%), incomplete deployments (55%), and reliance on manual oversight (50%). Smarter, more secure, more adaptive networks are the business case for investment. 96% say improved networks will directly drive revenue, and 97% expect meaningful cost savings – driven by smarter operations, fewer outages, and lower energy use.

Discover more of the key findings from Cisco’s Networking Research here.