lerbank/iStock/Getty Images Plus via Getty Images

Follow ZDNET:
Add us as a preferred source on Google.

ZDNET’s Key Takeaways
A multitude of contemporary research efforts collectively demonstrate that the majority of organizations still struggle to realize a tangible return on their investments in artificial intelligence. Yet, among those few that have managed to achieve measurable gains, stability and foresight stand out as the defining traits. According to Cisco, such frontrunners succeed not by chasing short-term rewards but by fostering an ecosystem rooted in trust, methodical planning, and a philosophy that regards AI not as a mere tool, but as a foundational operating system driving long-term digital transformation.

We are, quite evidently, existing within an era of striking contradiction. On one hand, businesses everywhere are swiftly adopting AI-driven technologies, automating workflows, and integrating machine learning tools into their daily operations. On the other, only a very narrow subset of these enterprises appears to be reaping meaningful benefits. This discrepancy raises a critical question: What strategic and operational decisions distinguish these high achievers from the overwhelming majority still waiting for their promised AI payoff?

The telecommunications giant Cisco sought to explore this mystery through its third annual **“AI Ready Index,”** a comprehensive study released on Tuesday. Drawing on an extensive survey of over 8,000 business executives responsible for steering their companies’ AI initiatives across twenty-six countries, the Index aimed to uncover the decisive factors that contribute to early and sustainable AI success. At the same time, it exposed the structural and cultural barriers that continue to hinder most organizations from evolving beyond the experimentation phase.

**The ROI Battle**
Over the past several years, it has become increasingly evident that simply implementing AI to automate certain internal processes or to enhance employee efficiency rarely guarantees financial returns. Although AI has the potential to augment productivity and streamline selected tasks, it also introduces a complex web of new challenges. These risks span from cybersecurity vulnerabilities and legal liabilities to ethical, psychological, and managerial complications. In certain instances, the creation of AI-driven systems ends up generating additional oversight work for managers rather than reducing it.

Indeed, a growing body of data underscores the difficulty most organizations face in capturing real economic value from their AI initiatives. A particularly notable study by MIT, published in August, reported that roughly 95% of corporate AI projects have failed to produce significant results. Complementing these findings, a separate study by Atlassian revealed that an even greater proportion—96% of businesses surveyed—had not experienced substantial improvements in operational efficiency, innovation output, or quality as a direct consequence of AI adoption. Paradoxically, this stagnation persists even as more individual employees are utilizing AI tools than ever before.

**The ‘Pacesetters’ Difference**
The investigations conducted by MIT, Atlassian, and now Cisco converge on a single insight: a small contingent of companies is outperforming the rest by approaching AI integration in a fundamentally different way. Cisco refers to this forward-thinking minority as **“Pacesetters.”** Representing roughly 13–14% of all businesses surveyed over three consecutive years, Pacesetters stand apart due to their structured methodology, strategic depth, and unwavering commitment to long-term resilience.

Cisco’s description of these organizations evokes the image of a prudent investor—one willing to forego short-term gratification in favor of sustainable progress. Rather than chasing flashy, rapid indicators of success, these leaders methodically design frameworks capable of supporting the continuous evolution of AI technology. They exhibit a rare combination of patience, rigor, and vision, recognizing that meaningful transformation occurs gradually through disciplined investment and cultural adaptation.

According to Cisco’s comprehensive report, these standout performers **“adopt a disciplined, system-level approach that balances strategy, infrastructure, data, governance, people, and culture.”** In other words, success in AI is not merely a matter of acquiring cutting-edge models or tools, but of building an organizational ecosystem capable of integrating those technologies seamlessly into everyday processes. Pacesetters plan years ahead, invest early in technical infrastructure, and embed AI into the structural core of their businesses—ensuring that innovation becomes self-sustaining rather than episodic.

Where most companies treat AI like an add-on device—a convenient gadget in their technological toolkit—Pacesetters regard it as a complete **operating system** for the enterprise. It is not a hammer used for individual tasks, but a blueprint redefining how the company’s digital architecture, data workflows, and leadership strategies coalesce. This mindset calls for a heightened degree of ambition, as well as a willingness to rethink foundational assumptions about how work, efficiency, and human-machine collaboration should coexist.

**Trust and Security: The Cornerstones of AI Maturity**
A defining trait of these high-performing organizations is their deliberate cultivation of trust in their AI tools and governance structures. Nearly all Pacesetters—an impressive 99%—have developed a clearly articulated **“AI roadmap,”** providing a structured plan to guide implementation over time. In comparison, barely more than half—58%—of other businesses have done the same. Equally revealing is the fact that 87% of Pacesetters report a heightened awareness of AI-specific cybersecurity threats, as opposed to 42% of companies outside their ranks. Moreover, three-quarters of these Pacesetters state that they are **fully prepared to secure and manage AI agents** in their operational environments, a capability possessed by only about one-third of their peers.

Cisco underscores that this level of confidence is not incidental but integral to value creation. In its press release accompanying the report, the company emphasized that trust in internal AI systems forms a crucial part of the Pacesetters’ overall **“value equation.”** This finding dovetails with a September study conducted by the Statistical Analysis System (SAS) and the International Data Corporation (IDC), which identified a lack of institutional trust in AI technologies as one of the biggest obstacles preventing organizations from achieving meaningful returns.

**A Pragmatic Path Forward**
Effective AI implementation, Cisco’s findings suggest, does not necessarily hinge on grand or headline-grabbing innovations. Rather, the path to reliable results often lies in automating more routine, even mundane functions—enhancing customer service systems, streamlining supply chains, or optimizing background analytics. For example, an AI-powered customer service platform may not receive as much media attention as a generative AI video campaign, yet such investments tend to deliver longer-lasting improvements in productivity and client satisfaction.

Supporting this pragmatic view, data from market research firm Forrester indicates that the most productive applications of AI within enterprises frequently occur **behind the scenes**, in systems that quietly enhance efficiency rather than visibly transform the user experience. Likewise, a recent analysis from venture capital firm Andreessen Horowitz (a16z) spotlighted fifty high-performing AI startups currently favored by corporate clients. Notably, many of these emerging companies specialize in niche automation services—solutions designed not to dazzle audiences but to streamline complex internal operations and maximize ROI.

In essence, Cisco’s study reveals that success with AI is far less about enthusiasm or experimentation and far more about integration, trust, and foresight. The companies moving ahead—the “Pacesetters”—are not simply adopting technologies; they are reshaping their operating philosophies to sustain long-term growth in an age defined by rapid digital acceleration.

Sourse: https://www.zdnet.com/article/a-minority-of-businesses-have-won-big-with-ai-what-are-they-doing-right/