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Last week’s IMF commentary has compared the surge in artificial intelligence (AI) to earlier waves of technological excitement, raising questions about the sector’s long-term sustainability. While it’s right to approach AI with thoughtful consideration and a focus on lasting value, history shows that innovation built on solid foundations can deliver real progress. The UK now stands at an important juncture: with the right approach, we have the opportunity to realise AI’s full potential - delivering lasting benefits and productivity gains for businesses, communities, and the wider economy. Much of the debate in Whitehall and across boardrooms has focused on chips, compute, and regulation, whilst important topics, this is not where Britain’s AI success will be decided. It is in the digital plumbing beneath the surface that will determine to what extent AI unlocks a new era of productivity or drives economy growth. Britain will not win the AI race by inventing the next foundational model, but we do have the opportunity to win by building the foundations: identity-bound systems, governed data access, and networks that can support inference at scale. Cisco’s 2025 AI Readiness Index reveals that just 16 per cent of UK organisations are truly “AI-ready”, these organisations possess the right mix of infrastructure, skills, and governance to deploy AI safely and at scale. For the vast majority of UK businesses, the ambition is there, they are eager to successfully implement AI and quickly realise its value but are lagging behind in having the modern, flexible infrastructure needed to do so securely and effectively. Only 15% of UK organisations describe their networks as “flexible” enough for AI use. Perhaps even more telling more than half of UK businesses worry their networks simply cannot handle the scale or data demands that AI will bring. This gap between aspiration and readiness is one of biggest factors that will determine whether AI delivers real value for the UK, empowering the country to reach its full potential. Our unique position as a services-heavy economy, with a world-leading open banking legacy and pragmatic regulators, makes the UK a testbed for what production-grade AI could look like in practice. If we can get it right here - industrialising safe, auditable, and scalable AI deployment – the door is opened to Britain setting the global standard for responsible AI adoption. Security and trust must be embedded from the outset. In the UK, cybersecurity remains the most frequently cited concern in boardrooms, with more than half of FTSE 100 companies listing it as a risk in their annual reports. Every AI model and agent should be tied to a verified identity, with the principle of least-privilege access ensuring that permissions are only granted where necessary. This approach helps prevent misuse and ensures accountability at every step. Alongside secure identity, governed data sharing is vital. For AI to deliver on its promise for organisations, it needs data accessible across cloud platforms but always with strict controls and compliance in place. Seamless, interoperable data sharing leads to innovation without sacrificing oversight. Finally, the backbone of AI success is a robust, modern network. Legacy infrastructure simply cannot support the demands of production-grade AI. Businesses must invest in agile, secure networks that can handle real-time inference, high data volumes and the security challenges that come with them. The lesson from the most advanced “pacesetters” in our global research is clear: readiness isn’t about being first; it’s about being prepared. Whether its retailers using AI to forecast demand more accurately, or healthcare providers deploying automation to improve services while maintaining data security, the results and infinite possibilities speak for themselves. These organisations are four times more likely to move AI from pilot to production and 50% more likely to see measurable business value. When AI is built on strong foundations, pilots become products and ideas become income. Secure, well-governed infrastructure is what turns AI pilots into business value. Real transformation requires investment not only in technology, but also in people, equipping workforces with the skills and confidence to deploy AI responsibly and ethically. By fostering inclusive digital growth and prioritising safe, effective adoption, business leaders and policymakers can help ensure AI delivers lasting value and opportunity across every sector and region of the UK. The UK has always thrived when it gets the basics right so if we build the right foundations now, we can unlock the true value of AI: higher productivity, better jobs, and a more resilient, forward-looking economy. Sarah Walker is Chief Executive, Cisco UK and Ireland
