- Companies are busy laying the groundwork while consumers drive higher AI adoption
- Coding is the only real widespread AI application in the workplace so far
- Palo Alto then focuses on security and observability
Enterprise adoption of AI tools is lagging behind consumer adoption, Palo Alto Networks CEO Nikesh Arora has argued, and it could be years before enterprise adoption overtakes personal use.
The biggest exception today is 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 businesses need to do to drive widespread adoption compared to consumers, suggesting that business adoption will increase, but only once the foundations are in place.
Consumers are using more artificial intelligence than companies – so far
“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 we can.”
One of the challenges Palo Alto currently recognizes 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 focused on securing AI.
“We also saw steady and strong adoption of AI security, which we expect to be a long-term trend,” Arora added in the earnings-related press release, talking about the company’s 15% year-over-year increase in quarterly revenue (to $2.6 billion).
While “consumers far outpace the company” for now, Arora isn’t worried. “If you look at cloud security, you didn’t see cloud security numbers for a while because cloud adoption in enterprises typically lagged the consumer,” he said.
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