- Businesses are busy laying the groundwork while consumers drive greater adoption of AI.
- Coding is the only truly widespread application of AI in the workplace so far
- Palo Alto next focuses on security and observability
Enterprise adoption of AI tools lags behind consumer adoption, said Nikesh Arora, CEO of Palo Alto Networks, and it could be many years before enterprise adoption exceeds personal use.
The biggest exception today is coding assistants, which have become the most common AI application in the workplace, he explained during an earnings conference call.
However, Arora hinted at the much deeper work that businesses need to do to drive widespread adoption versus consumers, suggesting that business adoption will increase, but only once the foundation is in place.
Consumers are using AI more than businesses – for now
“We’re all laying the groundwork right now,” he said. “It’s… kind of an arms race to try to see who can get the AI security platform up and running as quickly as possible.”
One of the challenges Palo Alto currently recognizes is the need to consolidate AI traffic for better visibility and monitoring. “It requires a different set of controls and tools,” he said, alluding to some of Palo Alto’s recent acquisitions focused on securing AI.
“We have also seen steady and strong adoption of AI security, which we believe will be a long-term trend,” Arora added in the earnings press release, talking about the company’s 15% year-over-year quarterly revenue increase (to $2.6 billion).
Even though “consumers are far outpacing businesses” for now, Arora isn’t worried. “If you look at cloud security, you haven’t seen numbers on cloud security for a while, because generally, enterprise cloud adoption has lagged behind consumers,” he said.
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