Philippine companies are planning to spend a more substantial amount of their capital in network upgrades to prepare for the steady rollout of artificial intelligence (AI), which is seen to be a key driver in revenue.

In a study by United States-based multinational technology giant Cisco, it was found that 99 percent of local firms are planning to increase the share of their information technology (IT) budget to enable more spending on networks.

In the same manner, 97 percent of companies in the Philippines are looking to upgrade their networks to ensure that they can handle the growing shift to AI.

According to Cisco, this marks a major architectural shift among companies aiming to strengthen their networks, which are central to their operations and growth.

In this context, network refers to the digital infrastructure that is the backbone of a company’s IT systems.

The report noted that 98 percent of Filipino companies are eyeing to make their networks more secure for AI needs.

About 77 percent of these firms said bolstering security is “critical,” with 97 percent agreeing that a reinforced network will enhance their cybersecurity.

Cisco said a secure and resilient network has become more vital as 82 percent of companies have faced major outages in the form of cyberattacks, congestion, and misconfigurations.

It estimated that a company could lose up to $160 billion, or around ₱9 trillion, in global losses from just one severe disruption.

While the report showed that 99 percent of companies see AI-ready networks essential to future growth, only 56 percent have deployed upgrades to make their networks adaptive.

Cisco Philippines managing director Zaza Soriano-Nicart said businesses have to harness the power of AI to meet modern needs already on the horizon.

“Today's networks must be faster, smarter, and more resilient. Businesses must recognize that a modernized network is key to driving future growth and success, said Soriano-Nicart.

The report cited that 93 of companies said improved networks will directly drive revenue, while 97 percent expects substantial cost savings.

Further, around 45 percent of business leaders that Cisco surveyed believed that AI will enable their companies to grow revenue.

The study stated that AI is already delivering financial value to many companies, largely driven by improving customer experiences, boosting efficiency, and enabling innovation.

“But much of that value is at risk if it comes from infrastructure that hasn’t been designed for AI or real-time scale,” it said. “Smarter, more secure, more adaptive networks are the business case for investment,”

The report gathered the insights of over 8,000 business leaders and senior IT officials from companies with 250 or more employees.