Canadian IT leaders boost network spend to meet AI demands

A new study from Cisco highlights a significant shift in how Canadian IT leaders are approaching network infrastructure in response to pressures brought on by artificial intelligence (AI), cybersecurity threats, and ever-increasing demands on network resilience.

The research reveals that 93% of Canadian IT leaders believe modernised networks are essential for the deployment of AI, the Internet of Things (IoT), and cloud applications. Additionally, 82% of those surveyed said they plan to increase the share of their IT budgets allocated to networking.

Network investment on the rise

One of the key findings from Cisco's study is that Canadian IT leaders are responding to changing business needs with significant investments in infrastructure. The network, traditionally seen as a background utility, is now regarded as a central strategic asset.

The study highlights growing awareness around the challenges caused by network outages. According to Cisco, one major outage per business per year is estimated to cost USD $160 billion globally. The primary causes identified are network congestion, cyberattacks, and software misconfigurations.

AI and resilient networks

The research shows 95% of Canadian IT leaders now consider network resilience critical, especially amid rising AI workloads and increasingly complex data traffic. Despite these concerns, 74% admitted to experiencing major outages recently, which underscores the importance of modernising approaches to network management and design.

Among business leaders, 87% said they expect improved infrastructure to drive company revenue, while 84% anticipate meaningful cost savings. This is believed to be achieved through smarter, more secure, and more adaptive networks.

"AI is changing everything — and infrastructure is at the heart of that reinvention. The network has powered every wave of digital transformation, accelerating the convergence of IoT, cloud, hybrid work, and defending against rising security threats," said Chintan Patel, CTO and Vice President, Solutions Engineering, Cisco EMEA. "IT leaders know the network they build today will shape the business they become tomorrow. Those who act now will be the ones who lead in the AI era."

The study further points out that 98% of respondents consider secure networking vital to their organisation's operations and growth, with 51% describing it as critical. A large majority, 88%, believe that an improved networking foundation will enhance their organisations' cybersecurity posture, suggesting a direct link between network upgrades and better protection against data breaches.

AI readiness and infrastructure challenges

The surge in AI adoption is exerting new pressures on data centres and network architecture. According to the study, 76% of Canadian IT leaders believe their current data centres are insufficient to meet today's AI demands. In response, 87% are planning to expand capacity, whether on-premise, through cloud solutions, or using a hybrid approach.

Network automation and AI-driven management are seen as crucial steps forward. Almost all participants (98%) agreed that autonomous, AI-powered networks are vital for future growth, though only 38% have implemented such intelligent functions as segmentation, visibility, and advanced control. These capabilities are designed to make networks more adaptive and responsive to changing conditions.

Business value and obstacles

Canadian organisations are already seeing returns from network investments, especially through customer experience improvements (46%), greater efficiency (43%), and enhanced capacity for innovation (54%). Nevertheless, technical limitations persist. Among those surveyed, 60% identified siloed or partially integrated systems as a leading obstacle to unlocking even more value, while 49% cited incomplete network deployments and 52% noted reliance on manual oversight.

Better network integration and increased use of intelligent, self-managing technologies are viewed as essential to realising the full benefits of these investments. Almost nine in ten expect that improved networks will directly impact revenue, and 84% anticipate significant cost reductions from streamlining operations and reducing outages.

C-suite leadership and the future

The study reinforces findings from previous Cisco research showing alignment between IT leaders and senior executives. Almost all CEOs (97%) are increasing their use of AI, and 78% depend on their Chief Information Officers or Chief Technology Officers for technology investment decisions. Further, 74% of CEOs noted outdated infrastructure is already restricting their organisations' growth potential, highlighting a shared urgency across leadership for architectural transformation.

Most executives (96%) expressed the view that trusted partnerships with technology providers will be essential to the success of their infrastructure overhaul and digital transformation goals.