Driven by the rise of AI, IoT and high-bandwidth applications, four out of five organisations increased wireless investment in the past five years, with a similar number forecasting continued budget increases, according to Cisco’s inaugural State of Wireless report,

The report revealed that wifi has evolved into a growth engine capable of delivering a multiplier effect, where a single network investment drives compounding returns across employee productivity, customer engagement and revenue. Based on a survey of 6000 global wireless professionals, the report underscores that, as organisations reach an inflection point in connectivity demand, those who prioritise wireless are achieving significantly higher business value than their peers.

This business value is governed by the wireless AI paradox: while AI is a primary driver of wireless RoI, it may also fuel operational complexity and security risks. Whether this dynamic becomes a barrier or a competitive advantage depends on how organisations navigate it. The report provides a roadmap – integrating AI-driven automation, modern security and specialised expertise – to help address these potential challenges. By taking this holistic approach, the report suggests organisations are four times more likely to achieve strong returns, turning their wireless infrastructure into a powerful competitive edge.

The rise of the IoT, AI workloads and high-bandwidth applications such as 4K and 8K streaming and AR and VR are now the primary drivers for wireless modernisation. As organisations adapt to these demands alongside shifting workplace trends such as hot desking and BYOD, they are significantly increasing their wireless budgets:

• 80% increased spending over the past five years
• 29% increased budgets by 50% or more over those five years
• 82% forecast continued budget increases over the next four to five years
• 35% expect to increase budgets by 50% or more over this time

“The enterprise workforce is evolving into blended teams of humans, AI agents and automated systems, all operating together at machine speed,” said Anurag Dhingra, senior vice president at Cisco (www.cisco.com). “Wifi is the foundation that makes that possible, connecting every endpoint, protecting every interaction and unlocking the operational insights that drive smarter decisions across the business. AI is both the biggest opportunity and the biggest test for enterprise networks right now.”

The survey shows organisations are accelerating the refresh of wireless networks, with an increasing percentage of respondents planning to upgrade to the 6GHz spectrum. Nearly three in five organisations report plans to deploy Wifi 6E or 7 in the next year.

While AI drives innovation, it introduces three interconnected areas that when successfully navigated make organisations four times more likely to achieve wireless RoI. These are reducing operational complexity, mitigating wireless security risks and addressing competition for wireless personnel.

With nearly all organisations (98%) reporting rising wireless complexity, many teams are trapped in a reactive cycle that drains resources, diverts resources away from work and undermines AI initiatives. To manage this, most prefer a fully or mostly automated wireless network powered by AI-driven operations. This approach is proven: 98% of those already using AI automation report substantial gains, saving an average of three hours and twenty minutes per person, per day.

AI-generated security incidents are a leading driver of increased wireless security risk. Over half of organisations report financial losses from wireless security incidents, with half of them exceeding $1m annually. Over a third of affected organisations point to compromised IoT or OT devices as the culprits.

A significant personnel shortage is amplifying operational problems. Nearly nine in ten wireless leaders are struggling to hire qualified professionals, citing increasing talent movement to roles in areas such as AI and cyber security. This talent gap is costly: organisations facing more significant hiring difficulties are more likely to incur security incident costs that are 70% higher annually than those with no recruitment difficulties.

The Cisco State of Wireless Report (www.cisco.com/site/us/en/products/networking/wireless/state-of-wireless-report/register.html) is an inaugural global study based on interviews with 6098 wireless decision-makers and technical specialists in organisations with at least 250 employees across 30 markets and a range of industries. The research was conducted by Sandpiper Research & Insights.

Visit the Cisco State of Wireless Report landing page at www.cisco.com/site/us/en/products/networking/wireless/state-of-wireless-report/index.html.