Across industries, the AI race is well underway. From conversational assistants to demand forecasting tools and anomaly detection systems, AI is no longer experimental, it’s operational.
Recent research shows that 88% of UK tech leaders believe AI will be essential to delivering business value over the next 12 months.
But for many enterprises, the ground is already shaking beneath their feet. Network outages and underperformance are costing organizations millions each year, directly impacting business outcomes.
In fact, new research from Expereo found that a third of UK organizations are losing up to £4 million per year due to network outages or underperformance, and nearly one in five are losing more than that.
These are not just IT glitches, they are multimillion-pound problems affecting growth, customer experience, and competitiveness.
The message is clear: the time to act is now. AI adoption is accelerating, but so are the consequences of inaction. Without strong digital foundations, even the most promising AI strategies will stall.
As AI advances into customer-facing operations, the margin for error becomes increasingly narrow. Infrastructure must catch up now, or risk becoming the very thing that holds transformation back.
From innovation to interruption: when infrastructure becomes the bottleneck
AI adoption is progressing rapidly, but infrastructure readiness is lagging behind. New research from Expereo also found that half of UK organizations have been forced to re-evaluate their technology stack following recent IT disruptions, including outages, cybersecurity incidents, and connectivity failures.
At the same time, investment priorities are shifting. Networking and connectivity have overtaken AI as the top technology investment focus for UK businesses, a reversal from last year’s priorities.
This is not a loss of enthusiasm for AI, but a recognition that AI cannot deliver if the underlying systems cannot support it. Poor network performance is increasingly seen as a direct threat to growth and innovation.
For too long, businesses have chased innovation without reinforcing the foundations beneath it. That balance is finally shifting in the right direction, and not a moment too soon.
The network is no longer background tech, it’s the frontline
It’s easy to think of AI in terms of data, models, and computing power. However, none of that is possible without the ability to move, process, and respond to data in real time, a capability that relies heavily on the network. Networks are no longer simply support systems; they are critical enablers of business performance.
To close the infrastructure gap, CIOs must move beyond siloed upgrades and think in terms of platform ecosystems. It’s not enough to patch bandwidth or bolt on APIs. What’s needed is a unified digital fabric where data, connectivity, telemetry, automation, and orchestration work in sync.
This platform-first mindset, similar to the way hyperscalers design for scale, enables not just AI execution, but AI agility. It transforms networks from a cost center into an intelligent driver of customer experience, innovation, and digital business models.
Yet, few businesses are truly prepared to support AI without barriers. Only 5% of UK businesses believe their networks are fully prepared to support AI without barriers. Modern workloads require more than bandwidth, they demand intelligent, flexible, and resilient infrastructure that can adapt to shifting demands, route data efficiently, and protect sensitive flows at every point in the system.
Skills and partners: the double gap CIOs must close
Building IT infrastructure that’s AI-ready isn’t just about technology. It’s also about people, and the skills shortage is becoming more acute. According to the research, 40% of organizations are struggling to hire or retain networking professionals, second only to cybersecurity. Without the right expertise, even the best tools won’t translate into real-world results.
This is why more than 40% of businesses plan to increase their reliance on external partners to help manage and scale their infrastructure. But not all partners are equipped to operate in AI-era environments that demand agility, cross-platform coordination, and global visibility.
CIOs must shift from transactional vendor relationships to strategic partnerships that bring technical depth, operational resilience, and a shared commitment to long-term transformation.
It’s no longer about procurement, it’s about co-creation.
The evolving role of the CIO: bridging hype and reality
The AI conversation has elevated the CIO’s role in the enterprise. More than three-quarters of tech leaders report having greater visibility and influence at the board level. With greater visibility at board level comes greater responsibility.
CIOs must be the realists in the room, but also the orchestrators of change. It’s no longer enough to translate hype into operational reality; the CIO must proactively reshape the systems, partnerships, and governance models that make AI sustainable. That means aligning cross-functional teams, modernizing the operating model, and enabling platform thinking from the ground up.
AI can’t thrive on hope alone. It needs structure, governance, and infrastructure that’s fit for purpose. And it’s the CIO’s job to ensure those basics are not overlooked in the rush to deploy high-profile solutions.
More broadly, the CIO must guide the business through a cultural shift. The pressure to adopt AI can sometimes overshadow readiness, creating unrealistic timelines and risky shortcuts. By championing investment in the “invisible” layers, such as connectivity and architecture, CIOs help ensure that innovation is not just impressive, but also sustainable.
Final thought: fix the foundation or risk the future
AI is still an exciting frontier with the potential to reshape industries. However, it cannot simply be plugged in and expected to perform, especially not on top of brittle systems, siloed data, or outdated infrastructure.
The financial and strategic risks are real: missed opportunities, failed projects, and lost competitive ground. CIOs now have a brief window to reframe the conversation, shifting attention from chasing AI outcomes to enabling them through resilient, scalable infrastructure.
The most effective CIOs won’t just defend budgets or deliver infrastructure, they’ll shape how their organizations think, build, and grow in the AI era.
Because in the end, the organizations that win the AI race won’t just be the most ambitious. They’ll be the ones that took the time to lay the groundwork first.
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