- Enterprises are busy laying the foundations while consumers drive higher AI adoption
- Coding is the only real widespread AI application in the workplace so far
- Palo Alto is focusing on security and observability next
Enterprise adoption of AI tools is lagging behind consumer adoption, Palo Alto Networks CEO Nikesh Arora has claimed, and it could be many years before business uptake overtakes personal use.
The main exception today are coding assistants, which have become the most common AI application in the workplace, he explained on an earnings call.
However, Arora alluded to the much more extensive work that enterprises must carry out to drive widespread adoption compared with consumers, suggesting business adoption will rise, but only once the foundations are in place.
Consumers are using more AI than businesses – for now
“We’re all laying the groundwork right now,” he said. “It is … sort of an arms race to try and see who can get the AI security sort of platform up and running as quickly as we can.”
One of the challenges Palo Alto recognizes at the moment is the need to consolidate AI traffic for greater visibility and monitoring. “It needs a different set of controls and tools,” he said, alluding to some of Palo Alto’s recent acquisitions that focus on securing AI.
“We also saw steady and strong adoption of AI security, which we expect will be a long term trend,” Arora added in the earnings-related press release, speaking about the company’s 15% year-over-year rise in quarterly revenue (to $2.6 billion).
While “consumers are far outstripping enterprise” for now, Arora isn’t worried. “If you look at cloud security, you didn’t see cloud security numbers for a while because typically, cloud adoption in enterprises lagged the consumer,” he said.
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